Employment Agreement (full-time)
Employment Contract
NovaTech Solutions GmbH — Employer · You (the undersigned) — Employee
The bottom line
This is a full-time job offer as Senior Software Developer at €62,000/year. The headline looks fine, but three clauses substantially shift power to the employer. First, the salary 'fully compensates all working time' — meaning unlimited unpaid overtime, including weekends. Second, the company claims ownership of EVERYTHING you create during your employment — even personal projects built at home, on your own laptop, unrelated to work. Third, a 24-month EU-wide non-compete with zero compensation could lock you out of your profession after you leave (and is likely invalid without compensation under German law — but you'd have to fight it). Add a one-sided notice asymmetry (they: statutory minimum; you: 3 months) and a 2-year training-cost clawback, and this contract needs several fixes before signing.
Red flags
Company owns your personal projects — even off-hours
Critical· Intellectual propertyClause 5 assigns the company ALL intellectual property you create during employment, explicitly including work done in your free time, on your own equipment, unrelated to their business.
What to ask for
IP assignment limited to work within your duties or using company resources; explicit carve-out for personal and open-source projects.
24-month unpaid EU-wide non-compete
Critical· Non-competeTwo years locked out of your profession across the EU with zero compensation. Likely void under German law (which requires ~50% salary compensation), but fixing it now beats litigating later.
What to ask for
Delete it, or reduce to 6–12 months with a narrow competitor definition and the statutory 50% compensation.
Unlimited unpaid overtime, including weekends and holidays
High· FinancialClause 3 declares your salary covers 'all working time' — a blank check for crunch periods with no extra pay or time off.
What to ask for
A defined cap (e.g. 10 hours/month included), with time off in lieu or payment beyond it.
You give 3 months' notice — they give the legal minimum
High· TerminationAsymmetric notice makes you slow to hire away but easy to dismiss. In some countries this asymmetry is not permitted at all — worth checking under the law that governs the contract.
What to ask for
Symmetric notice periods for both parties.
100% training-cost clawback for 2 years
Medium· FinancialFull repayment of any company-funded training if you resign within 24 months — no sliding scale, no cost threshold.
What to ask for
Pro-rata reduction per month served, minimum threshold, job-required trainings excluded.
Key deadlines
- Probation ends
6 months after your start date. Until then either side can terminate with days' notice — avoid big financial commitments that assume job security.
- Resignation notice — 3 months
If you ever plan to change jobs, count backwards: an offer starting in January means resigning by the end of September.
- Training clawback window
Any company-funded training locks you in for 24 months from its completion — track the dates of every course you accept.
Dates you have to act on. Adding them to your calendar takes one click.
Key facts
- Position
- Senior Software Developer
- Gross salary
- €62,000/year (12 installments)
- Working hours
- 40h/week + uncompensated overtime
- Probation
- 6 months, 3 days' notice
- Non-compete
- 24 months, EU-wide, unpaid
- Your resignation notice
- 3 months
- Governing law
- Germany (Munich courts)
Clause by clause
1. Position and Duties
Low· OtherWhat the contract says
“The Employee is hired as Senior Software Developer... The Employee shall perform the duties described in Annex A, as well as any other tasks reasonably assigned by the Company.”
What it means
You're a Senior Software Developer with duties listed in Annex A. 'Any other tasks reasonably assigned' is normal flexibility language — the word 'reasonably' keeps it in check. Make sure you actually receive and read Annex A before signing.
Negotiation tip
Ask for Annex A up front. If it's vague, request that your core role be described specifically enough that you can't be reassigned to something entirely different.
2. Compensation
Low· FinancialWhat the contract says
“The gross annual salary is EUR 62,000... Salary reviews are at the Company's discretion; nothing in this Agreement entitles the Employee to an increase.”
What it means
€62,000 gross per year, paid monthly. There's no guaranteed raise — reviews happen only if the company feels like it. Not unusual, but it means your only leverage for increases is negotiation or leaving.
Negotiation tip
Ask for an annual review commitment in writing (a review doesn't guarantee a raise, but it guarantees the conversation). If they promised a bonus verbally, get it into the contract.
3. Working Hours — the unpaid overtime clause
High· FinancialWhat the contract says
“The Employee acknowledges that the position may require additional hours as necessary... and agrees that the salary in Section 2 fully compensates all working time, including overtime, weekend, and holiday work.”
What it means
Officially 40 hours/week — but this clause says your salary covers unlimited extra hours, including weekends and holidays. If crunch time means 55-hour weeks for three months, you get nothing extra. Blanket 'all overtime included' clauses are legally questionable in Germany (courts generally require a defined limit), but as written the intent is clear.
Negotiation tip
Ask to cap included overtime at a defined number (e.g. 'up to 10 hours/month included; beyond that, time off in lieu or paid'). German case law generally invalidates unlimited-overtime clauses, but a defined cap protects you without a fight.
4. Probation Period
Medium· TerminationWhat the contract says
“The first six (6) months constitute a probation period, during which either party may terminate the employment with three (3) days' written notice and without severance.”
What it means
For half a year, either side can end things with just 3 days' notice. Six months is the legal maximum in Germany and 3 days is below the statutory 2-week probation notice — another sign this contract was drafted aggressively.
Negotiation tip
Ask to align probation notice with the statutory 2 weeks (the 3-day term is likely invalid anyway) and, if you're leaving a stable job for this one, try to shorten probation to 3 months.
5. Intellectual Property — the everything-you-make clause
Critical· Intellectual propertyWhat the contract says
“All inventions, works, software, designs, ideas, and other intellectual property conceived... by the Employee during the term of employment — whether or not created during working hours, on Company equipment, or related to the Company's business — shall be the sole and exclusive property of the Company.”
What it means
This is the most overreaching clause in the contract. It claims the company owns everything you create while employed — explicitly including things made in your free time, on your own computer, with no connection to the company's business. Your weekend open-source project, your indie game, your novel: theirs, as written.
Negotiation tip
Limit IP assignment to work created (a) within the scope of your duties, or (b) using company resources/confidential information. Ask for an explicit carve-out for personal projects and open-source contributions unrelated to the company's business. Reasonable employers accept this routinely.
6. Confidentiality
StandardWhat the contract says
“The Employee shall keep confidential all non-public information of the Company, its clients, and partners, during employment and for five (5) years thereafter.”
What it means
Keep company secrets secret, during the job and for 5 years after. Standard and reasonable — 3–5 years post-employment is the normal range.
7. Non-Compete — 2 years, EU-wide, unpaid
Critical· Non-competeWhat the contract says
“For twenty-four (24) months following the end of employment, the Employee shall not... work for, consult with, or hold any interest in any company that competes with the Company anywhere in the European Union. No separate compensation is payable for this restriction.”
What it means
After leaving, you couldn't work for any competitor anywhere in the EU for two full years — with no pay for sitting out. For a software developer, that could mean leaving your field or the continent. Worth knowing: in several European countries a post-employment non-compete is only binding if the employer pays you a meaningful part of your salary for the period it covers, and one with no compensation at all may not hold up. Whether that applies to you depends on the country whose law governs the contract — check with a local lawyer. Either way, the safest move is to fix it before signing rather than rely on a court later.
Negotiation tip
Best: delete it (confidentiality + non-solicitation already protect the company). Otherwise: max 6–12 months, narrow definition of 'competitor', limited geography, and proper compensation for the period you are restricted.
8. Non-Solicitation
Medium· Non-competeWhat the contract says
“For twelve (12) months after the end of employment, the Employee shall not solicit or hire any employee or contractor of the Company, nor contact any client of the Company for business purposes.”
What it means
For a year after leaving, you can't poach colleagues or chase the company's clients. This is common and much more reasonable than the non-compete — though 'contact any client for business purposes' is broad if the company has thousands of clients you never worked with.
Negotiation tip
Narrow it to clients you personally worked with or learned confidential information about during the last 12 months of employment.
9. Termination — asymmetric notice
High· TerminationWhat the contract says
“After the probation period, the Company may terminate this Agreement with the statutory minimum notice. The Employee shall provide three (3) months' written notice of resignation.”
What it means
The company only owes you the legal minimum notice (starting at 4 weeks in Germany), but if YOU want to leave, you must give 3 months. That means a new employer would need to wait a quarter of a year for you — a real handicap in job searches.
Negotiation tip
Make notice symmetric — whatever period applies, it should apply to both sides. In some countries the law does not allow a longer notice period for the employee than for the employer, so a clause like this may not be enforceable — worth checking locally.
10. Training Costs
Medium· FinancialWhat the contract says
“If the Employee resigns within twenty-four (24) months of completing any Company-funded training, the Employee shall reimburse 100% of the training costs.”
What it means
If the company pays for a course and you resign within 2 years, you repay ALL of it — even if you leave 23 months later. A conference in month 1 could handcuff you for two more years. Standard practice is a sliding scale that reduces the repayment each month you stay.
Negotiation tip
Ask for a pro-rata sliding scale (e.g. repayment reduces by 1/12 per month over 12 months), a cost threshold (only trainings above €1,000 count), and exclusion of job-required trainings.
11. Amendments
Medium· Unilateral changesWhat the contract says
“The Company may amend workplace policies, bonus schemes, and benefit programs referenced in this Agreement at any time, at its sole discretion.”
What it means
Policies, bonuses, and benefits can be changed or cancelled by the company whenever it wants. Your salary is safe (it's in the contract), but anything else — bonus scheme, remote-work policy, perks — is written in sand.
Negotiation tip
Move anything that matters to you (bonus formula, remote-work arrangement) into the contract text itself, where it can't be changed unilaterally.
12. Governing Law
StandardWhat the contract says
“This Agreement is governed by the laws of Germany. The courts of Munich shall have exclusive jurisdiction.”
What it means
German law and Munich courts. Fine if you live and work there — German employment law is actually quite protective and may neutralize several of the harsher clauses above.
Questions to ask before signing
- 1Can we add a carve-out so personal projects created off-hours without company resources remain mine?
- 2Will you cap the overtime included in salary at a defined number of hours per month?
- 3Is the company prepared to pay the statutory compensation for the non-compete — or can we remove it?
- 4Can the notice periods be made equal for both sides?
- 5Can the training clawback use a sliding scale instead of 100% for 24 months?
- 6Can I see Annex A (the duties description) before signing?
- 7Are the bonus scheme and remote-work policy fixed in the contract, or changeable at any time?
Legal terms, decoded
- Non-compete clause
- A restriction preventing you from working for competitors after leaving. In several European countries it is only binding if the employer pays you compensation for the restricted period.
- Non-solicitation
- A promise not to recruit your former colleagues or take the company's clients after you leave. Narrower and generally more enforceable than a non-compete.
- IP assignment
- Transferring ownership of things you create (code, designs, inventions) to your employer. Normal for work products; overreaching when it covers personal projects.
- Probation period
- An initial phase with easier termination for both sides. In Germany, maximum 6 months, with a statutory 2-week notice period.
- Time off in lieu
- Compensating extra hours worked with equivalent free time instead of money.
- Clawback
- A contractual right to demand money back — here, training costs if you resign within a set period.
Generated by Fair Contracts on October 16, 2026 using automated AI analysis. Automated analysis can miss things or be wrong.
Fair Contracts is an informational tool, not legal advice, and using it creates no lawyer–client relationship. For decisions that matter, consult a licensed professional in your country.
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