The fixed-term employment contract is now part of everyday life for many young professionals. Not all time limits are actually legal. Anyone who is familiar with the applicable regulations has a much better chance of defending themselves against questionable fixed-term contracts or of achieving a permanent fixed-term contract.
What types of time limits are there?
There are two basic forms of fixed-term employment in German labor law, as the Konstanz Chamber of Commerce and Industry explains: the calendar-based and the limited-purpose variant. In the first variant, there is a fixed date in the contract – around December 31st. The second form ties the end of the contract to a specific event, for example the return of a colleague from parental leave.
Both variants are subject to the regulations of the Part-Time and Fixed-Term Employment Act and therefore strict formal requirements. While an objective reason is generally required for fixed-term contracts, calendar time limits can also be agreed under certain conditions without a specific justification.
Non-substantive vs. objective limitation
Employers can hire employees for a limited period of time without giving a specific reason. However, there are strict limits to this approach: As the Kupka-Stillfried law firm emphasizes, such contracts may run for a maximum of two years and may be extended a maximum of three times during this time. There is also an important restriction: there must have been no previous employment relationship between the contracting parties. The situation is different if there is a recognized factual reason, then repeated time limits are possible under certain conditions. According to Section 14 Paragraph 1 of the Part-Time and Fixed-Term Employment Act (TzBfG), the law lists eight such factual reasons here. Temporary need for additional workers, the replacement of other employees, a fixed-term contract following training, a testing phase or, for example, temporary budget resources in the public service.
Termination and Early Termination
A fixed-term contract usually simply expires without the need for termination, according to the law firm Kupka-Stillfried. Ordinary termination is only possible if the contract or an applicable collective agreement expressly provides for this. If such a regulation is missing, neither the employer nor the employee has the option of ordinary termination.
In contrast, the possibility of extraordinary termination always remains. However, the prerequisite for this is that one party has violated the other party’s trust to such an extent that it is no longer reasonable to continue the employment relationship. According to the Hensche law firm, with fixed-term contracts it can happen that the purpose occurs earlier than expected and the employment relationship ends prematurely as a result.
Paul Schütte, editorial team at finanzen.net
