Welcome to Omnipresent’s guide on customizing employment contracts in Germany. This article walks you through what can and cannot be customized during onboarding to help align employment terms with your business needs—while ensuring full compliance with German labor law and Omnipresent’s licensed EOR model.
Customizable Elements
Contract Terms
Probation period: Can be customized depending on contract duration.
For 16–18 months: up to 4 months
For 12–15 months: up to 3 months
For 8–11 months: up to 2 months
Job title & job description: Fully customizable. Please avoid referencing your company name. Detailed descriptions are helpful for clarity and future HR processes.
Flexible hours: Can be included and documented in Annex B. Please specify if employees work a non-standard schedule.
Place of work: Clients may specify whether the employee works remotely, from a home office, or from a physical office. Details can be captured in Annex B.
Compensation and Benefits
Recurring allowances: You may offer monthly allowances (e.g., wellness, internet). These must be specified in the platform and recorded in Annex B.
Joining bonus: A one-time sign-on bonus may be added, as long as it does not cover work performed before the employment start date.
Annual leave: Leave entitlement is calculated based on comparable employees. Clients can offer additional leave or unlimited time off if these apply internally.
Sick leave: German law provides up to 6 weeks of full sick pay per illness. Clients can choose to offer more generous policies via Annex B.
Variable compensation: Bonuses, commissions, or other variable pay plans can be added if they are also available to comparable employees.
Items Requiring a Side Agreement
The following cannot be included in the employment contract but may be addressed separately between you and the employee:
Parental leave enhancements: Enhanced policies can be offered outside of the contract and noted in Annex B. Payroll must be informed to process top-ups.
Equity/stock options: Omnipresent is not a party to option schemes, but clients may provide equity information separately to the employee.
Equipment: Clients can agree separately with the employee on the provision of equipment.
IP / confidentiality clauses: A standard clause is included. Custom wording must be added via a side agreement.
Business travel: Occasional travel may be arranged but must be approved by Omnipresent. Clients must notify us and may communicate expectations directly to the employee.
Non-Customizable Areas
To maintain compliance with German labor laws and Omnipresent’s license, the following elements cannot be customized or changed:
Backdating the start date: Not permitted under Omnipresent policy.
Contract duration: Only fixed-term contracts (up to 18 months) are allowed under the EOR license. For permanent employment, we recommend transitioning to our Virtual Employer (VE) solution after 18 months.
Recognition of prior seniority: Not allowed. Previous service cannot be acknowledged as it may impact the 18-month cap.
Salary in foreign currency: Must be paid in EUR. Payment in other currencies is not supported.
Overtime payments: Not processed by Omnipresent.
Hourly salary structures: Not supported.
Notice periods: Fixed per law. After probation, one month’s notice to the end of the calendar month applies.
Restrictive covenants (non-compete, non-solicit): Not included in the contract. Consider the VE model if these are essential.
Exclusivity clauses: Cannot be modified and are included only where legally permissible.
Payroll frequency: Monthly only, as per German legal requirements.
Reimbursement of expenses: No specific language will be included in the contract.
Stylistic edits to the contract: Not allowed. This preserves legal integrity.
Changes to align with other jurisdictions or that conflict with German law: Never permitted.
Equal Treatment Principle in Germany
Under German labor law, employees hired through Omnipresent must receive working conditions equal to or better than those of your comparable internal employees. This includes pay, benefits, and working hours.
Please ensure Annex B in your Client Agreement is completed accurately. This is your responsibility and a crucial step in ensuring compliance.
For example: if your internal team has an unlimited leave policy, this must be extended to the Omnipresent-hired employee.
Conclusion
Omnipresent provides structured yet flexible employment contracts for your German-based employees. While we prioritize customization where legally possible, our primary commitment is to compliance and a smooth onboarding experience. Use this guide to help tailor your employee contracts with confidence—and in accordance with the law.