Definition: In-company station (Inhouse)
The in-company station (Inhouse) refers in a legal context to a specific phase of training or employment within a company, particularly in relation to legal clerkships and other law-related professional trainings as well as practical work by members of legal or economic professions in companies. The term covers the temporary, structured induction, employment, or training segment within the legal, organizational, and economic framework of a company and includes all legal questions, requirements, and consequences of this station.
Legal foundations of the in-company station (Inhouse)
1. Statutory regulations
a) Legal clerkship and the elective station in a company
In Germany, the elective station in a company is an integral part of the legal preparatory service, regulated by the German Judiciary Act (DRiG) as well as the respective state laws and training regulations. Legal trainees may complete part of their practical training (elective station) in companies. The key regulations are:
- §§ 5 ff. DRiG (focus on practical training)
- Training and examination regulations of the federal states
A station in a company can be completed in legal departments of private companies, trade associations or organizations. The law specifies that this period of training must provide professional guidance, appropriate supervision and relevance to the objectives of the legal clerkship.
b) Internship stations and mandatory internships during studies
Degree programs with a focus on business or law may also require internships in companies due to university laws and examination regulations, which can also be legally classified as an in-company station (Inhouse). The legal basis comprises:
- Higher Education Acts of the federal states
- Examination regulations of the respective study programs
c) Labor law aspects (e.g., trainee programs, internships)
For employment relationships or fixed-term employment in the form of trainee programs or internships, general labor law applies:
- §§ 611a ff. German Civil Code (BGB)
- Proof Act (NachwG)
- Minimum Wage Act (MiLoG), where applicable
These regulations particularly govern the rights and obligations during the in-company station, such as remuneration, working hours, social insurance, and vacation entitlement.
2. Data protection requirements
During the in-company station (Inhouse), all participants must comply with the requirements of the General Data Protection Regulation (GDPR) in conjunction with the Federal Data Protection Act (BDSG). This particularly includes:
- Confidentiality of client data, internal company information, and trade secrets
- Information on data processing performed as part of the station participant’s activities
- Conclusion of confidentiality obligations and, if necessary, data processing agreements
3. Confidentiality and nondisclosure
The duty of confidentiality generally arises from:
- § 203 German Criminal Code (StGB) for especially sensitive persons bound to secrecy
- § 17 Act Against Unfair Competition (UWG) – Protection of trade and business secrets
- Internal company guidelines and individual agreements
Particularly in legal departments, there is often an increased duty of confidentiality with regard to client data, internal processes, and strategies.
In-company station (Inhouse): Contractual and organizational structuring
1. Contractual structuring
Depending on the type of station (clerkship, internship, trainee program), different contractual frameworks must be observed:
a) Training contract/internship agreement
- Written specification of training contents, areas of responsibility, and duration
- Regulation of remuneration, working hours, and vacation
- Agreements on confidentiality duties, data protection obligations and, if applicable, non-competition clauses
b) Supervision agreement (legal clerkship)
- Obligation to provide professional guidance by a responsible person in the company’s legal department
- Definition of training objectives according to the respective state law regulations
- Obligation to document the training station (reporting requirements)
2. Right to issue instructions and independence
During the in-company station, the trainee is organizationally subject to the authority of the supervising person, whereby the practical training must be the focus. The tasks performed must serve training purposes and must not fully replace regular employees.
Legal problem areas and disputes in connection with the in-company station
1. Status of the trainee
A central legal issue is the distinction between a training relationship and an employment relationship:
- In the case of legal clerkships and compulsory internships, it is a training relationship; the training objective is paramount.
- For trainee positions and voluntary internships, an employment relationship may exist in individual cases, which has direct consequences for social insurance, dismissal protection, and remuneration obligations.
2. Liability during the station
If an error is made during the in-company station (Inhouse), it must be determined whether and to what extent liability on the part of the company or of the trainee comes into consideration. As a rule, the principle of limited trainee/employee liability applies, which is shaped by the decision of the Federal Labor Court (BAG) in German law.
3. Remuneration and social insurance issues
The remuneration obligation during the in-company station depends on its legal classification, in particular under the Minimum Wage Act and social insurance law. Mandatory stations within training or study generally do not fall under the Minimum Wage Act.
4. Competition protection and post-contractual duties
Frequently, post-contractual non-competition clauses and rules on the return of documents, data carriers, and confidentiality obligations are agreed during or after the in-company station.
In-company station (Inhouse) in practice
1. Areas of deployment and typical activities
Trainees typically complete their practical period in the following areas:
- Legal departments
- Compliance departments
- HR departments with a legal focus
- Corporate governance and risk management
Typical tasks: support with contract reviews, legal opinions, internal communication with authorities, preparation of pleadings, and in-house company trainings.
2. Documentation and reporting requirements
According to the legal requirements, the activities performed during the in-company station must be documented in an appropriate form (e.g., training reports, activity records) to ensure recognition of the training segments.
3. Termination of the station and after-effects
After completion of the station, the employment relationship ends, but residual obligations such as confidentiality or the return of work materials remain in effect.
The in-company station (Inhouse) is a significant, multifaceted component of practical training in legally and economically oriented professions and entails deep legal requirements. From contractual structuring, labor law, data protection, confidentiality, to liability issues, competing regulations, and final provisions, numerous legal aspects must be observed in order to ensure a legally compliant and successful course of the station.
Frequently asked questions
What labor law requirements apply to internal training stations (Inhouse stations)?
Internal training stations in Germany are subject to the labor law provisions of the Vocational Training Act (BBiG) and other specific professional legal regulations. The company is obliged to comply with the principles of proper training, in particular to provide relevant training content in accordance with the training regulations and to provide the necessary work materials. In addition, the Youth Employment Protection Act applies to minors and the General Equal Treatment Act (AGG) ensures protection against discrimination. It is essential that the training contract remains valid and the rights and obligations of both the trainers and the trainees continue to apply without restriction during the Inhouse station. Working time regulations, particularly under the Working Time Act, must be strictly observed. Internal stations must also generally be documented in the training plan and monitored by the training officer.
What obligations does the company have towards trainees during an Inhouse station?
The company is obliged to ensure full compliance with all statutory and collective agreement provisions during the Inhouse station. These include, in particular, the payment of the remuneration stipulated in the training contract, vacation entitlements according to the Federal Vacation Act (BUrlG), as well as the duty of care and protection towards the trainee. The company must ensure that the training objectives of the respective station can be achieved and that rotation within the business area is appropriately planned and documented. If these obligations are breached, for example due to inadequate supervision or lack of training content, the trainee may file a complaint or, in the worst case, terminate the contract without notice.
What co-determination rights does the works council have in connection with the structuring of Inhouse stations?
Pursuant to the Works Constitution Act (BetrVG), the works council has comprehensive co-determination rights in connection with training positions and their structuring, particularly as per § 98 BetrVG. The introduction or modification of Inhouse stations as well as their content and organizational implementation are subject to co-determination, provided they relate to company training. The works council must be informed and involved in essential changes. It is also entitled to make suggestions for improving the training situation and ensuring training quality.
What data protection rules must be observed for Inhouse stations?
The provisions of the General Data Protection Regulation (GDPR) apply in full during the conduct of Inhouse stations. Personal data of trainees, such as performance records, evaluations, or medical information, may only be collected, processed, and stored if it is necessary to achieve the training purpose and there is a legal basis. The company must ensure appropriate technical and organizational measures to protect the data. In addition, trainees must be informed about the type, scope, and purpose of the data processing. Data may not be passed on to third parties without appropriate consent or legal basis.
What special features apply regarding liability in case of accidents during the Inhouse station?
Accidents that occur during an Inhouse station are generally recognized as occupational accidents within the meaning of the Social Code (SGB VII) and are covered by statutory accident insurance. The company is obliged to implement all necessary accident prevention measures in accordance with the Occupational Safety Act (ArbSchG) and the accident prevention regulations of the employers’ liability insurance associations. If an accident nevertheless occurs, the company must file an accident report and ensure that the trainee is taken care of. If the company fails to fulfill its duties, liability towards the employers’ liability insurance association or the trainee may arise.
To what extent do employment contract rules have to be adapted for the implementation of an Inhouse station?
An amendment to the existing training contract is generally not required as long as the Inhouse station is carried out within the training-related framework and the area of activity documented in the contract and training plan. However, if different activities, other locations, or new content are included which were not originally part of the contract, a written adjustment or supplementary agreement is recommended. Changes must be transparent and communicated to the trainee. Violations of this transparency may result in ineffectiveness or even claims for damages.
What legal requirements apply to equal treatment and equal opportunities during the Inhouse station?
Under the General Equal Treatment Act (AGG), the company is obliged to ensure equal opportunities and equal treatment in the selection, allocation and execution of Inhouse stations. There must be no discrimination on the grounds of gender, age, origin, religion, ideology, disability or sexual identity. Violations thereof may result in claims for damages or compensation. In addition, possible complaint procedures must be communicated transparently and discrimination-free selection processes must be ensured.