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Employment contract signed but not taken up: what applies now

A signed employment contract binds both sides, even if the work has not yet begun. But you can get rid of the position: if the employment relationship has not yet begun, you can generally terminate in the ordinary way. Simply not showing up, on the other hand, is risky.

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Your chances of getting your money back

Before the start of work you can terminate the employment relationship in the ordinary way, provided the contract does not exclude this. The notice period begins, if nothing else is agreed, usually with the receipt of the termination.
If you simply do not show up (non-commencement), the employer can demand compensation for a provable damage and, if effectively agreed, demand a contractual penalty. A clean termination protects you from this.

What you should do now

  1. 1

    1. Check the contract for termination rules

    Look for the notice period, an exclusion of termination before the start of work and a contractual penalty clause.

  2. 2

    2. Terminate in writing

    Issue an ordinary termination in writing (with your own signature) and have the receipt confirmed. A termination by email does not meet the form requirement.

  3. 3

    3. Observe the deadline

    Observe the notice period. Until then you in principle owe no work, if you have not agreed otherwise, but the relationship ends only when the period expires.

  4. 4

    4. Check the contractual penalty

    If a contractual penalty is demanded, check its validity; many clauses are drafted too broadly and are therefore invalid.

How to spot the scam

  • The contract contains a high contractual penalty for non-commencement.
  • A termination before starting work is excluded in the contract.
  • You rely on simply not showing up.

Frequently asked questions

Do I have to take up the job if I have signed?

The contract binds, but you can free yourself through an ordinary termination if this is not excluded by contract. Simply staying away can trigger damages and contractual penalty claims.

Can the employer demand damages?

Only for a specifically provable damage from the non-commencement and in the case of fault. In practice the proof is often difficult. But an effectively agreed contractual penalty can apply regardless of this.

Is a contractual penalty always effective?

No. Many contractual penalty clauses are drafted unreasonably broadly or unclearly and are therefore invalid. Have the specific clause checked before you pay.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.