Document background
The Key Person Agreement is essential for companies operating in Germany who need to secure and retain individuals vital to their business success. This agreement is typically used when hiring or promoting employees to critical positions where their skills, knowledge, or relationships are fundamental to the company's operations or strategic objectives. The document combines mandatory German employment law requirements with specific provisions addressing the unique aspects of key personnel positions, including detailed compensation packages, performance expectations, and protective covenants. It is particularly relevant in situations involving senior executives, technical experts, or individuals with specialized knowledge or client relationships. The agreement must carefully balance the company's need to protect its interests with the limitations imposed by German employment law, particularly regarding post-employment restrictions and data protection requirements.
