A fixed-term employment contract means that it is agreed in the employment contract that the employment relationship will end at a specific, calendar date/time or due to a specific, defined event, without the need for prior notice of termination.
If an inadmissible fixed term exists, the employment relationship remains in effect and is considered to be concluded for an indefinite period of time, d.h. it becomes a permanent employment contract. In principle, however, it is possible to agree on a terminability in the employment contract due to the freedom of contract. Extraordinary termination is always possible even in a fixed-term employment contract. A fixed-term employment contract must also be agreed in writing.
1. Fixed-term employment contract with objective reason
The employment contract must be based on the requirements of § 14 ff TzBfG (Part-Time and Fixed-term Employment Act). In detail, the regulation includes that in principle a fixed-term employment must be justified by an objective reason. These are, according to § 14, paragraph 1 TzBfG, in particular the following eight reasons:
1. There is only a temporary operational need.
2. The fixed-term contract is concluded following training or studies and is intended to facilitate the employee’s transition to subsequent employment.
3. The employee is only employed to replace another employee.
4. The specific nature of the work justifies the fixed-term contract.
5. The fixed-term contract is for testing purposes.
6. The person of the employee includes reasons that justify the fixed-term contract.
7. The employee is remunerated from budgetary funds that are designated for fixed-term employment under budgetary law and the employee is employed accordingly. This regulation refers to the public service.
8. The fixed term is based on a court settlement.
If one of the above reasons exists, the employment contract is not subject to any time restrictions.
2. Fixed-term employment contract without objective reason
§ Section 14, paragraph 2 TzBfG contains the regulations for a fixed-term contract without objective reason. Accordingly, the calendar limitation of an employment contract is permissible for a period of up to two years, d.h. a fixed term may not last longer than a maximum of two years. Up to this total duration of two years, it is also permissible to extend the fixed-term employment contract three times, d.h. the fixed term does not have to be two years from the beginning, but it cannot be longer than two years.
Note, however, that collective bargaining agreements may increase both the maximum length of two years and the number of per se maximum three extensions.
3. When is a fixed-term employment contract not permissible??
It is important to note that a fixed term is not permitted if the employee has previously been in a fixed-term or permanent employment relationship with the employer. However, this rule does not apply if there is a period of more than three years between the old and the new employment relationship, with the same employer.
4. Fixed term employment contracts for newly established companies
In the first four years, a newly founded company has the possibility to conclude employment contracts without any objective reason up to a total duration of four years. These contracts also do not have to be set at four years from the start, but can be extended, up to the maximum total duration of four years.
5. Probationary period for fixed-term employment contract
The employer has, even in the case of an employment contract with a fixed term, the possibility to agree on a probationary period and he can also agree on a notice of termination within the probationary period. There is no legally binding regulation for the length of the probationary period, it can be freely agreed upon.
6. Maternity/parental leave during a fixed-term employment contract
Maternity leave and parental leave do not extend the employment contract. In both cases, the fixed-term employment relationship ends at the agreed point in time.
7. Fixed term employment contract – sample
The following link contains a sample fixed-term employment contract without a material reason: www.smart-right.de
However, one should always bear in mind that there are only few binding, legally defined regulations and the contracts can therefore differ from each other in many respects. With all contracts you should always read the contract carefully. If you do not understand something, you should discuss it with the employer before signing. After you have signed the contract, it is only possible to challenge it if the agreements made are against the law, or. are immoral.