# German Employment Law - Contractual penalties for not commencing a job



## HelloWorldGuy

I have signed a contract with a German company, and one of the clauses says that if I am unable to start working for them, in the case of intentionally resigning, then they would charge me one month of paid salary.

I didn't even work one day for them, and they only have my emails and physical address in Argentina, but they don't have anything else.

I have signed the contract, but meanwhile I found another job, in Germany too. And I would like not to proceed with them.

Do I really need to pay them one month of salary? Is this something legal to have in a contract?

They have told me that if I don't pay, they will take "legal steps".

Here is the clause:

"The Employee undertakes to pay a penalty for breach of contract in the amount of the normal gross monthly remuneration, if he intentionally and unlawfully fails to take up the employment."

I just want to follow the law. How should I proceed?

What about the fact that they don't much of my personal information?


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## Nononymous

If you were not planning on moving to Germany, you could probably ignore this. If you took another job in Germany, it wouldn't take much of a detective to find you.

At this point I think your best option would be to get legal advice, from a German lawyer.


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## James3214

I would ignore it. The time and costs for them to track you down and try to recover the costs are just not worth it, but just don't mention you are in Germany.


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## Stevesolar

Sounds like a good company to work for - looks like you had a "great escape"!


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## Nononymous

If you do want to ignore them, then yes, be sure to say nothing about taking another job in Germany - say that you're remaining in Argentina. 

Could well be that the penalty clause has no legal standing, but you don't want to be paying a lawyer to tell them that. 

Sounds a bit like what happens when you try to cancel a German gym membership...


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## Ben-HH

HelloWorldGuy said:


> I have signed a contract with a German company, and one of the clauses says that if I am unable to start working for them, in the case of intentionally resigning, then they would charge me one month of paid salary.
> 
> I didn't even work one day for them, and they only have my emails and physical address in Argentina, but they don't have anything else.
> 
> I have signed the contract, but meanwhile I found another job, in Germany too. And I would like not to proceed with them.
> 
> Do I really need to pay them one month of salary? Is this something legal to have in a contract?
> 
> They have told me that if I don't pay, they will take "legal steps".
> 
> Here is the clause:
> 
> "The Employee undertakes to pay a penalty for breach of contract in the amount of the normal gross monthly remuneration, if he intentionally and unlawfully fails to take up the employment."
> 
> I just want to follow the law. How should I proceed?
> 
> What about the fact that they don't much of my personal information?


What are you wandering about? You signed a contract and you do not fulfill your duties. They were probably relying on you to start to take over specific tasks. And now you are not and they are likely to suffer a loss.

its only fair that they do have a "penalty" in the contract for you not providing what you have agreed to.

If I would be you I would not take the risk of just ignoring it. Probably not the smartest way to start your life in Germany (or any other country). At least I would not wanna do it and have that kind of strange feeling every time I entering or leaving Germany and they check my passport at the border...

A smarter way would be that you start the job and resign on the very first day. You usually have a probation period. In which you usually can resign with a 2 weeks notice without giving any reason.

That is how I would do it if the Employer does not let you out of the contract.

Cheers


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## Stevesolar

Ben-HH said:


> What are you wandering about? You signed a contract and you do not fulfill your duties. They were probably relying on you to start to take over specific tasks. And now you are not and they are likely to suffer a loss.
> 
> its only fair that they do have a "penalty" in the contract for you not providing what you have agreed to.
> 
> If I would be you I would not take the risk of just ignoring it. Probably not the smartest way to start your life in Germany (or any other country). At least I would not wanna do it and have that kind of strange feeling every time I entering or leaving Germany and they check my passport at the border...
> 
> A smarter way would be that you start the job and resign on the very first day. You usually have a probation period. In which you usually can resign with a 2 weeks notice without giving any reason.
> 
> That is how I would do it if the Employer does not let you out of the contract.
> 
> Cheers


Hi,
Please stop scaremongering!
I can really see the German passport control stopping someone because they did not start a job with a company in Germany!!
In an ideal world people sign job offers, start the job and live happily ever after.
Unfortunately, we simply don't live in an ideal world and peoples circumstances change.
Cheers
Steve


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## Ben-HH

Stevesolar said:


> Hi,
> Please stop scaremongering!
> I can really see the German passport control stopping someone because they did not start a job with a company in Germany!!
> In an ideal world people sign job offers, start the job and live happily ever after.
> Unfortunately, we simply don't live in an ideal world and peoples circumstances change.
> Cheers
> Steve


I did not say that. I said I would have a strange feeling... At the end of the day they could proceed legal actions and sue you even without being in the country. And in that case you might have issues.

Anyway...

Why signing a contract if you are not happy with the clauses? But as said, easy, stress free and legal way would be resigning on the first day. Given there is a probation period.

Cheers


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## Stevesolar

Ben-HH said:


> I did not say that. I said I would have a strange feeling... At the end of the day they could proceed legal actions and sue you even without being in the country. And in that case you might have issues.
> 
> Anyway...
> 
> Why signing a contract if you are not happy with the clauses? But as said, easy, stress free and legal way would be resigning on the first day. Given there is a probation period.
> 
> Cheers


Hi,
Agreed on doing the right thing - then there is zero chance of comeback!
Cheers
Steve


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## Nononymous

Ben-HH said:


> A smarter way would be that you start the job and resign on the very first day. You usually have a probation period. In which you usually can resign with a 2 weeks notice without giving any reason.


That might not be a smart move if the work permit is tied to the first job. Extra trips to the Ausländerbehörde, not being able to start the second job until a new work permit is processed, etc.


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## Ben-HH

Nononymous said:


> That might not be a smart move if the work permit is tied to the first job. Extra trips to the Ausländerbehörde, not being able to start the second job until a new work permit is processed, etc.


Fair point. Anyway, something for HelloWorldGuy to check...

Cheers


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