Creating a contract in Germany that complies with local laws is the first step to ensuring a smooth working relationship with your employee. However, navigating legal requirements, best practices, and documentation standards can quickly become complex.
In this article, we’ll guide you through the key steps to draft compliant contracts in Germany, helping you meet legal standards and protect your business.
Step 1: Select employment category
Click “Hire & Onboard” and then choose an employment category. This article will outline the steps to create a contract for an EOR employee as an example.
Step 2: Select Germany
Select Germany from the drop down menu and confirm that your employee is eligible to work there.
Step 3: Enter employee details
Start filling out the information collected from your employee, such as their name, email, and so on.
Step 4: Enter annual salary
Enter monthly salary. You will be notified of any mandatory compliance steps to ensure your contract is 100% compliant with German labor laws – in this case, having a monthly payroll frequency is mandatory in Germany.
Step 5: Adjust allowances and leave count
Once you select an insurance plan, you can customize allowances and leave entitlements. Multiplier recommends the ideal leave count, probation period, non-compete and other policies based on best practices in Germany. Mandatory legal requirements for that particular employee’s jurisdiction are automatically included.
Step 6: Review and send for signature
Once the contract is generated and reviewed, click on ‘Send Contract’. A physical copy will be sent to your employee to be signed as Germany mandates wet ink signatures. Keep in mind that this may affect process times and start dates.
Get the Multiplier advantage
With Multiplier, a few simple details and a couple of clicks is all it takes to create a compliant contract and hire a full time employee in Germany. Focus on what’s important while we handle the nitty-gritty. Book a demo and find out for yourself.
