1. Terms of Employment
1.1 Status of Employee
In Germany, an employee (Arbeitnehmer) enjoys a special
status that is described as the personal obligation to perform work
upon the employer's instructions, without entrepreneurial risks
and in a situation of economic dependence (to a certain degree) on
the employer.
Employee protection rights do not, therefore, generally apply to
directors and board members of companies – as they act mainly
without instructions from superiors. Where protection rights derive
from European Union Directives, such board members and directors
are treated as 'employees' under German law as well.
1.2 Contractual Relationship
Basically, the employer and employee are free to negotiate
employment agreements. These agreements may be put down in writing
or be concluded orally. There is no general form requirement under
German law. The employer is only obliged to provide the employee
with a text that provides the core terms and conditions
