6. Standard Contracts

6. Standard Contracts

Finally, two model contracts are presented, which give formulation hints and make no claim to completeness. They contain suggestions that need to be considered on a case-by-case basis. Model contract I regulates the case of secondment. Model contract II regulates the case of transfer. The main difference to a secondment contract is that the employee is hired and paid by a local foreign company under agreement of the local employment contract status.

Model contract I

(the corresponding company - hereinafter referred to as "the company")

(employee to be seconded - hereinafter referred to as "employee")

the following secondment contract is agreed:

Mr / Mrs .. will represent the company in ... The commitment associated with the ... The commitment associated with the in ... is intended to promote the export of his company and increase its market share. This employment requires its separate regulation. In addition to her employment contract of ... the following agreement is made for the duration of their stay in ... is made:

§ 1 Assignment
(1) Mr / Mrs .. will be posted at his own request to (state, place) for the period from ... to ....
      If necessary, the stay can be extended for a further limited period.

(2) The appointment is made for the function as ... . The job description is a component of this
      contract. (3) Mr / Mrs .

(3) Mr / Mrs ... is subject to the technical instructions of ... and in disciplinary terms
      of ... . In addition, the instructions of the superior in the host state must be followed. In
      In case of doubt, the arrangements of ... must be observed. (4) The ...

(4) The ... reserves the right to assign another task to Mr. / Mrs. ... or to
      subordination relationship for organizational reasons. The fulfillment of tasks can be
      also be associated with a local change. You will be informed of this in good time.
      is set. (5) You can always

(5) You can be called back at any time to ... can be called back if the ... considers it necessary.

§ 2 Remuneration
(1) Mr / Mrs ... receives a monthly salary of Euro ... gross. This means that all claims for
      an overtime is compensated.

(2) In addition, Mr / Mrs .. receives an expatriation allowance of Euro ... gross (3)

(3) The personal and business successes shall be determined in accordance with a separate target agreement.
      honoured. (4)

(4) The value of the euro content shall be maintained by an exchange rate parity. The adjustment
      takes place at reasonable intervals, currently monthly. It is based in each case on the following assumptions
      official exchange rate fluctuations from the last banking day of the previous month to the last banking day of the previous
      Bank day of the regulatory month.

§ 3 Additional services
(1) The company shall bear the costs for travel to and from the location within the scope of the agreed task accordingly.
      its Travel Expenses Directive. In addition, the travel expenses for an annual home journey are
      refunded. For Mr / Mrs ... there is baggage insurance.

(2) Rental costs shall be reimbursed in the State in which the work is carried out in accordance with the Directive. For a transitional period
      (3 months) the overnight stay costs in a hotel will be refunded.

(3) Retraction costs will only be refunded after prior agreement for reasons of business reasons.
      necessity is reimbursed. Reimbursement is excluded if the employee
      terminates the employment relationship.

4 Scope of insurance
(1) The German social insurance continues to apply (/not) during the stay abroad. If applicable
      the necessary applications are made.

(2) The company takes out the following insurance policies for Mr. / Mrs. ... additionally takes out the following insurances:

- a supplementary foreign health insurance,
- accident insurance in the amount of Euro ... on death and in the amount of Euro ... on the
   Disability case,

- theft insurance.

The insurance cover begins on the day of departure and ends with the termination of the assignment. In all other respects, the scope of the insurance cover is governed by the provisions of the insurance contract and the General Terms and Conditions of Insurance. Official and non-official accidents must be reported immediately in writing.

(3) In the event of political unrest or riots or of force majeure or comparable events, the insured person shall be liable for any loss of or damage to property.
     Mr. / Mrs. ... has taken risks. to the next safe place without further hesitation.
     and notify the company.

§ 5 Continued payment of salary
(1) In the event of illness leading to incapacity for service, the company shall pay Mr / Mrs ... his / her respective
      monthly gross salary for the period from ... calendar days / weeks / months.
      Payments by a health insurance company for which the company pays contributions will be deducted from this /
      are not taken into account.

(2) In the event of death, the dependants entitled to benefits shall receive the last remuneration received for
      the month of death and more ... Months. (3) Sick man / woman ...

(3) If Mr / Mrs ... falls ill. or his dependent relatives during the month of death.
      family stay is so difficult that, on the basis of a doctor's recommendation, it is not possible to
      treatment in Germany is urgently required, the return flight costs will be
      is assumed by the company.

(4) If the loss of service is due to a culpable cause, three monthly salaries shall be paid to the employee.
      continued to be paid in consideration of the family without recognition of a legal obligation.

§ 6 Duration of contract / return modalities
(1) This agreement shall end at the end of the fixed-term period, unless it was concluded 3 months before
      expiration is extended or cancelled.

(2) In the event of a contractual termination of the stay abroad, the Company shall bear the costs of
      Return. § 7 Secondary activities

§ 7 Secondary activities
(1) The employee undertakes to put all his or her labour into the service of the company.
      The assumption or continuation of a secondary activity. The assumption or continuation of a secondary activity shall require the prior consent of
      of the company. The same applies to the participation in a company as well as to the participation in an
      Supervisory body of another company. Approval may be granted if no
      interests of the company are opposed. Secondary and honorary positions, which the employee may hold.
      on the basis of this assignment contract, he / she will, at the request of the company
      at any time, but at the latest upon termination of this contract.

(2) In the case of lectures or publications, the r/employee shall be responsible for the interests of the company.
      in case of doubt. In case of doubt, the prior consent of the company must be obtained.

§ 8 Confidentiality obligation
(1) The employee undertakes to inform himself/herself about all the conditions of the secondment contract in order to
      business and operational matters that come to his or her knowledge or are entrusted to him or her,
      in particular trade and company secrets concerning technical, organisational and other matters,
      economic or personnel issues, to maintain silence. This obligation
      shall also extend to a permissible extent to the time after the termination of the assignment contract.

(2) Upon termination of the secondment contract, the employee undertakes to pay all the remuneration specified in
      to his / her possession of documents related to his / her activity,
      to be returned to the company.

§ 9 Additional agreements
(1) Insofar as this agreement does not contain any deviating provisions, the employment contract of ... .

(2) Should any of the agreements or contents of this assignment contract be invalid,
      the partial invalidity of this clause shall not affect the validity of the remaining contract.
      be touched. The parties undertake to replace the ineffective clause by an economically valid clause.
      or an agreement which most closely corresponds to their economic purpose and which
      corresponds both to the meaning and the purpose of the void clause.

(3) The Directive on the posting of workers shall become an integral part of the contract in its respective version.

(4) Further collateral agreements must be made in writing.

(5) Place of performance is ... .

(6) The German Employment Contract Statute shall apply.

Model contract II

- hereinafter referred to as the "Company" -


- hereinafter referred to as "employees" -

the following transfer contract is concluded:

For the duration of your stay abroad in ... your employment relationship with the company will be suspended unless otherwise agreed in the following. The details of your new contract as well as your new area of responsibility will be agreed there.
The company receiving you is hereinafter referred to as the "foreign company".

§ 1 Transfer
You will be transferred to ... to the foreign company.
Your stay abroad has a duration of five years. It is extended by one year in each case if no use is made of the termination option. An agreement will be reached with you in good time regarding your activity after the termination of the assignment.

§ 2 Connection to the head office
During your work abroad you will continue to work at the head office ... You will be continued in the foreign company as ... You will be employed in the foreign company as ... must be employed with regard to this activity. With regard to this activity, you are subject exclusively to the instructions of the commercial manager of the foreign company.

§ 3 Updating the Domestic Content
Your domestic salary of last EURO ... gross is updated annually on the basis of the principles for the salary adjustment of comparable employees of the company for the duration of your employment abroad. You will receive a notification after the respective review. On your return, we guarantee you a salary in the amount of the updated domestic salary. The updated domestic salary serves as the assessment basis for contributions to the company pension scheme and for contributions to social insurance.

§ 4 Company pension scheme
For the duration of your employment with the foreign company, you will continue to belong to the company pension scheme of the company. You thus remain a member of the pension fund of the company's employees and also acquire future claims in accordance with the articles of the supplementary company insurance in the currently valid version.

§ 5 Voluntary continued insurance in the social insurance system
You have opted for compulsory insurance on application in the statutory pension insurance. The company will make this application for you. In due time we will send you the decision of the BfA. You will receive from us a contribution to the statutory pension insurance in the Federal Republic of Germany amounting to 50% of the respective income threshold. The employee contribution in the same amount is borne by you. The total amount will be paid to the BfA by us until revoked by you.
The updated domestic salary also forms the basis for any benefits you may receive under the foreign accident insurance of the employers' liability insurance association.
In addition to the contributions to your foreign health insurance, the company also pays pension contributions to maintain an existing private health insurance until the time of your return. The same applies to members of the statutory health insurance. Corresponding pension contributions can also be paid for family members upon separate application.

§ 6 Period of employment
The duration of your activity at the foreign company will be fully deducted from your length of service.
The company guarantees the performance of the services provided to you in the delegation agreement with the foreign company as well as all services under this agreement, even if the foreign company has to bear the costs.

§ 7 Return guarantee
The company will offer you a position equivalent to your previous position in the parent company or one of the subsidiaries in terms of function and remuneration, unless there is a possibility of transferring a higher-value activity, if your service contract with the foreign company has expired without it having been terminated prematurely for a circumstance for which you are responsible or the pension case has occurred.

§ 8 Final provisions
Should individual agreements or contents of this contract be invalid, the validity of the remaining contract shall not be affected. The parties undertake to replace the ineffective clause with a clause that is economically equivalent or most similar to the ineffective clause, which corresponds both to the meaning and the purpose of the ineffective clause.

All amendments and supplements to this agreement must be made in writing.

German law shall apply to this agreement.

Place of jurisdiction is ...

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