Employment contract

In principle, an employment contract can be concluded without any formal requirements in accordance with Section 105 GewO; there is no written form requirement (apart from insignificant exceptions). The parties to the employment contract are free to determine the terms of the contract within the framework of the statutory provisions. However, the employment contract may not contain any agreements that are below the statutory minimum conditions. Employment contract clauses are subject to general terms and conditions control in accordance with §§ 305 ff. BGB. A clause is invalid if it is surprising or unclear or unreasonably disadvantages the employee.

Company agreements or collective agreements can also have an effect on an employment relationship. If a works agreement applies in the company, it applies directly to all employment relationships in accordance with Section 77 BetrVG. A separate transfer to individual employees is not required.

Collective agreements apply directly and mandatorily to a specific employment relationship if the employer is a member of the employers' association and the employee is a member of the trade union concluding the collective agreement. Collective agreements that have been declared generally binding also apply directly. Finally, collective agreement regulations can also be referred to in employment contracts.

Employees may not be placed in a less favorable position by a works agreement or collective agreement compared to an individual agreement; this is known as the "favorability principle".

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