Don’t get trapped!

Will you be arriving in Germany soon, or do you already live in Germany? If yes, you probably had to sign a lot of contracts to get everything up and running: Internet, phone, insurance, electricity, and more. There is so much to organize. Here is an important rule of thumb you must know about contracts in Germany: A lot of contracts have a binding defined duration and will be automatically renewed at the end of that period, unless you have explicitly requested that the contract be terminated, 3 months before the renewal date!

Let’s take a look at the story of Daniel. Meet Daniel. He is new in Germany. He moved into a new apartment and he joined the closest gym to his flat. The membership contract started on 1.1.2020 and is running for the duration of 1 year. Whether he pays monthly/ quarterly/ yearly - he is obliged to the gym for the duration of his contract. During this year he wasn’t attending the gym as often as he thought he would, and he decided to not continue for next year. However, he didn’t inform the gym that he wishes to end his membership, and on 1.1.2021 his contract will automatically be renewed again for 1 whole year! 

Don’t be Daniel! 

Here’s how to handle contracts in Germany: 

1. Make sure you understand the contract, the duration, and the terms for ending it.

2. After each beginning of a contract, schedule yourself a reminder 3 months before the termination of the contract, to remind you that you still can cancel it if you want to (You can schedule an email to yourself / calendar event, or any other creative way you’ll find).

3. If you wish to end a contract: Contact your provider and let him know you will not be renewing the contract. In some cases you can do this online. If not, make sure that you also send a letter by post.

Most contracts will be in German. So, it is important that you get help in case you do not understand German. It is often recommended to read the details of the contracts before signing them.

Examples of contracts

• Work contracts - take a look at our article on employment in Germany

• Cell Phone plan - normally the contract is for 1-2 years (particularly if you got a special offer when signing up!)

• Internet plan - normally for 1-2 years

• Electricity - normally for 1-2 years

• Insurances - normally for 1 year

• Gym membership - normally for 1 year

Most of these contracts usually have a fixed period of 1-2 years, in which you can’t end them.

Good to know

There are also different service providers who offer more flexible contracts, or contracts without a minimal duration, but anyway it’s important to check their conditions and notice period (there’s always a notice period).

Are you looking for information on employment contracts? Read this article, to learn the 10 most important things about employment contracts.

Good luck!

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Important note: Our HalloGermany articles are written with utmost care to explain careers and paperwork in Germany. However, please note that the content presented here does neither constitute nor replace any form of legal advice. We highly recommend consulting a lawyer for any legal concerns you may have.