What information should be included in an employment contract?
- Exact details of the employer, including address
- Exact details of the work location
- Precise description of the job duties
- Detailed breakdown of income
- A short notice period (for employees) is preferable
- Vacation duration: 30 working days are not guaranteed (the legal entitlement is only 24 working days)
- Working hours: Have Monday through Friday and 35 to 38 hours per week specified in the contract (request a premium for additional hours)
What should I look out for regarding my salary?
The annual salary is what matters, not the monthly salary. Take the metal industry in Baden-Württemberg as an example: In addition to the twelve monthly salaries, employees there receive vacation pay and a special bonus (“Christmas bonus”). This brings an employee’s total to 13.24 months’ salary per year.
What is “target pay”?
With “target pay,” the amount of compensation depends on whether certain targets have been met. (Be careful when comparing this to fixed salaries!)
Specifically, this might look like this:
- Target exceeded: 80,000 euros
- Target met: 50,000 euros
- Guaranteed income: 35,000 euros
What are the benefits of a collective bargaining agreement?
With a collective bargaining agreement, young college graduates typically earn several thousand euros more per year.
Example: Mathematicians and physicists in the metal and electrical industries can expect to earn around 47,000 euros a year in their first few years on the job if their company is covered by a collective bargaining agreement. Without a collective bargaining agreement, they earn an average of only 41,000 euros, as data from the WSI Collective Bargaining Archive shows.
There is also a gap between companies bound by collective bargaining agreements and those that are not when it comes to working hours and vacation entitlement.
What are “AT contracts”?
AT stands for “außertariflich” (outside the collective bargaining agreement). Most of the time, this means the potential employer is currently implementing cost-cutting measures. AT contracts have many disadvantages: no automatic salary increases to keep pace with inflation, longer notice periods, and difficulty switching to another employer. And in most cases, a 40-hour workweek applies, which includes overtime.
What matters most in salary negotiations?
- Be confident: Know your marketvalue ; what do your colleagues earn? What do other companies pay?
- Determine your needs: How much money do I need to make ends meet? How much do I need to live the life I want? You should definitely not go below the first threshold.
- Wait and see: During the interview, wait until the potential employer asks about your salary expectations. If they don’t, you’ll need to bring up the topic yourself. (“I have one more question: How is this position budgeted or classified at your company?”)
- Practice
- For women: Compareyour pay to that of men in the same position
Where can I earn the most?
Large companies usually pay entry-level employees significantly more than small ones. This has nothing to do with generosity. The reason is rather that these companies are highly likely to have a works council and are bound by collective bargaining agreements. Find more information in our collective bargaining guide.
What else matters?
Pay alone doesn’t tell the whole story—especially not whether you’ll feel comfortable in your new job.
You should also ask these questions:
- Am I working as part of a team or on my own?
- What career development opportunities are available within the company?
- Do I have the opportunity to work abroad?
- Does the company offer a training and development program?
- How do employees talk about their employer?
- How does the employer handle conflict situations?
What can I do if my employer terminates my employment?
Employers must comply with notice periods: According to Section 622 of the German Civil Code (BGB), the notice period ranges from four weeks to seven months. During the probationary period, the notice period is generally two weeks.
The Unfair Dismissal Protection Act applies only if a person has been employed by the company for more than six months and the company has more than ten full-time employees. The employer must provide valid reasons. Employees can have the legality of a termination reviewed by a labor court.
What are the grounds for termination?
Termination for cause: in cases of misconduct or violation of work duties; as a rule, a prior written warning is required.
Termination for personal reasons: e.g., due to recurring or long-term illness.
Termination for business reasons: due to a decline in revenue, streamlining, or outsourcing of jobs.
What if I want to resign myself?
Notice of termination must always be given in writing. Consult with the works council and the union before signing a non-compete clause. A non-compete clause is an agreement stipulating that employees may not act as competitors within the same industry after leaving their employment (legal basis: § 74 et seq. HGB).
After the employment relationship ends, employees are entitled to a favorable, detailed reference letter containing information about their conduct and performance. IG Metall has experts who review employment references.
Note:
If you want to know whether a potential employer is bound by a collective bargaining agreement, you can ask the student advisors at your local IG Metall office.
