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Hourly Rate Agreement Template for Germany

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Key Requirements PROMPT example:

Hourly Rate Agreement

"I need an Hourly Rate Agreement for engaging an IT security consultant based in Berlin, who will be working remotely for our company starting March 2025, with specific provisions for handling sensitive data and strict confidentiality requirements."

Document background
This Hourly Rate Agreement template is designed for use in the German market where services are provided on a time-based compensation model. It's particularly suitable for professional services, consulting arrangements, and temporary work engagements where tracking and billing of hours is essential. The document ensures compliance with German legal requirements, including the Civil Code (BGB), Working Hours Act (ArbZG), and Minimum Wage Act (MiLoG). It's structured to protect both parties' interests while maintaining flexibility in service delivery and includes necessary provisions for GDPR compliance. The agreement is commonly used when engaging freelancers, consultants, or professional service providers for project-based or ongoing work where an hourly rate structure is preferred over fixed-fee arrangements.
Suggested Sections

1. Parties: Identification of the contracting parties including full legal names, addresses, and registration details if applicable

2. Background: Brief context of the agreement and the intention to enter into an hourly rate arrangement

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including any specific requirements or qualifications

5. Hourly Rate and Payment Terms: Specified hourly rate, payment schedule, invoicing requirements, and payment methods

6. Working Hours and Time Recording: Agreement on working hours, time tracking methods, and submission of time records

7. Term and Termination: Duration of the agreement and conditions for termination by either party

8. Obligations of the Service Provider: Key responsibilities, quality standards, and delivery expectations

9. Obligations of the Client: Client's responsibilities including provision of necessary information and materials

10. Confidentiality: Provisions for handling confidential information and trade secrets

11. Data Protection: GDPR compliance measures and data handling procedures

12. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes

Optional Sections

1. Non-Competition: Restrictions on working with competitors, used when protecting business interests is crucial

2. Equipment and Resources: Details about provision of necessary tools and resources, included when specific equipment is required

3. Insurance: Insurance requirements, included when specific coverage is necessary for the services

4. Intellectual Property Rights: IP ownership and usage rights, included when work involves creation of intellectual property

5. Force Majeure: Provisions for unforeseen circumstances, included for longer-term arrangements

6. Assignment and Subcontracting: Rules about transferring rights or using subcontractors, included when relevant to the service nature

7. Travel and Expenses: Terms for reimbursement of travel and other expenses, included when travel is expected

Suggested Schedules

1. Schedule 1 - Service Description: Detailed specification of services to be provided

2. Schedule 2 - Rate Card: Detailed breakdown of hourly rates, including any variations for different types of work or times

3. Schedule 3 - Time Recording Template: Standard format for recording and submitting working hours

4. Appendix A - Data Processing Agreement: Detailed GDPR-compliant data processing terms if personal data is processed

5. Appendix B - Contact Details: List of key contacts and their roles for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























Clauses






























Relevant Industries

Information Technology

Management Consulting

Professional Services

Engineering

Creative Industries

Healthcare

Education and Training

Financial Services

Legal Services

Construction

Research and Development

Marketing and Advertising

Technical Services

Relevant Teams

Legal

Human Resources

Procurement

Finance

Project Management Office

Operations

Compliance

Risk Management

Vendor Management

Contract Administration

Relevant Roles

Consultant

Freelance Developer

Project Manager

Independent Contractor

Technical Specialist

Legal Advisor

Business Analyst

IT Professional

Design Consultant

Training Specialist

Engineering Consultant

Marketing Specialist

Research Analyst

Healthcare Professional

Financial Advisor

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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