Salary Non Disclosure Agreement Template for Germany

This Salary Non-Disclosure Agreement is designed for use in the German market where employers need to balance legitimate business confidentiality interests with employee rights and regulatory compliance. It becomes particularly relevant during employee onboarding, promotions, or when implementing new compensation structures. The document addresses requirements under German employment law, including the Civil Code (BGB), Federal Data Protection Act (BDSG), and Wage Transparency Act (EntgTranspG). It includes provisions for permitted disclosures, works council rights, and data protection obligations while maintaining alignment with German constitutional rights regarding freedom of expression. The agreement is structured to be enforceable under German law while protecting sensitive compensation information.

1. Parties: Identification of the employer and employee, including full legal names and addresses

2. Background: Context of the agreement, employment relationship, and reason for salary confidentiality

3. Definitions: Key terms including 'Confidential Salary Information', 'Permitted Disclosures', and 'Third Parties'

4. Scope of Confidential Information: Detailed description of what constitutes confidential salary information, including own salary, colleagues' salaries, bonus structures, and benefits

5. Confidentiality Obligations: Core obligations regarding non-disclosure of salary information, including specific prohibited actions

6. Permitted Disclosures: Explicitly allowed disclosures, such as to tax advisors, legal requirements, or immediate family members

7. Duration of Obligations: Time period for which the confidentiality obligations remain in effect, including post-employment

8. Data Protection Compliance: Acknowledgment of GDPR and BDSG requirements regarding personal data processing

9. Consequences of Breach: Legal consequences and potential remedies in case of violation

10. Governing Law and Jurisdiction: Specification of German law application and competent courts

11. Severability: Standard clause ensuring remainder of agreement remains valid if parts are found invalid