Fixed Term Employment Contract or Part Time Contract

Definition, Explanation

Regulations for fixed term employment contracts are determined in the German law of part time employment and fixed term employment contracts (TzBfG). They allow for setting either a fixed duration of the employment or having it finished once a certain goal is achieved, for instance with the finishing of a project. Contrary to the case of cancellation, here, the employment relationship ends automatically. Generally, two forms are discerned:

A limited-duration employment for no factual reason
The allowed duration ranges from minimally 1 day to maximally 2 years. A repeated extension of the duration is allowed up to three times, not exceeding the overall duration limit of 2 years. After this, the employment is ended and can only be maintained by permanent employment. A further constraint is: The fixed-duration employment is not allowed to be the immediate next employment that follows a prior employment relationship of the same employee and same employer, no matter how much time lies in between.

Within the first 4 years of a new-founded company, the maximum duration of a fixed-term employment is 4 years. Within this period of time, it can be extended an unlimited number of times. A legal reorganisation is not a new-foundation.

Employees who are 52 years old or older, before the beginning of the employment relationship, can be employed for a fixed duration with an unlimited number of extensions up to 5 years. Condition is that they have been unemployed, before, for at least 4 months or have worked within a government-supported job-creation scheme, like the 1-Euro Job.

Fixed duration for a factual reason
A factual reason is given if
- there is only temporary need to employ, like in projects or in substitution of another employee who is unavailable for the duration of illness or other temporary disability, pregnancy, sabbatical or parental leave
- it helps an apprenticed or post-graduate to proceed to a subsequent employment
- the employee is to be tested for his job, longer than for the usual probationary period
- reasons for fixed duration are in the person of the employee, e.g. a student
- the payment comes form budget recources that are determined for fixed-term employment
- a juridical settlement determines the fixed duration

Tips, Checklist

The fixing of the duration is to be put in written, with employer and employee signing. Oral agreements found a permanent employment
As an employee for fixed duration you have the same rights regarding vacation, part-time work, further education, overtime hours and Christmas bonus as in permanent employment. Also social insurances are paid equally
A change of the working conditions at the point of time of extending sets the extension legally void. This is only allowed for in case the original contract provides for such changes. So you better arrange payment and working time conditions after signing the new contract
The employment counts as extended unlimitedly, in case the employee continues working and this is known to the employer. Legally this is an extension of the employment relationship, and becomes a valid permanent employment, unless the employer immediately objects to this
An extension of duration has to be done before the original employment period has expired. Otherwise it would count as a new fixed-duration employment which is not allowed, making it a permanent employment
As an employer, write down factual reasons into the contract. This frees you from some constraints. In this, avoid stereotypical expressions that are easily objected to
An employment of fixed duration cannot be cancelled but ends at the date determined. The only exception is the case in which it has been arranged differently in the employment contract or in the wage contract
An invalid limitation of duration has to be reported to the labour court before end of the third week after the employment contract has ended, otherwise, the end of employment is valid, even if the limitation of duration was an invalid
The special dismissal protection according to the German maternity protection law does not extend the duration in case of pregnancy. The employment ends at the date determined
Severely disabled, equally, do not have any special dismissal protection, in fixed-duration employment
Use the opportunities of fixed-term employedness to get to know companies, establish contact and prove your competences
If you are interested in being permanently employed, talk to the staff manager and to your boss, 2 to 3 months before end of your employment
3 months before end of your employment, report unemployed to the Bundesagentur für Arbeit. In case the ending hinges on purpose-achievement, you have to report as soon as you know when it ends. The employer is obliged to notify you of this obligation to report unemployed. If you fail to meet this deadline of 3 months, you risk a 3-months-suspense of your unemployment allowance
List former fixed-term employments in your application
The end of a fixed-duration employment that is bound to purpose achievement has to be announced by the employer 2 weeks in advance. Otherwise, the employment ends 2 weeks after the letter about the date of purpose achievement
Employment contracts that regulate the employment to end once the employer reaches a certain age, are principally limited-duration employment contracts. For these to be valid, it needs a factual reason. For instance, such a reason would be the financial security of the employed once he reaches retirement age
In case you are unclear concerning validity of a limited-duration contract or about extension possibilities or validity of a factual reason, adress yourself to the works council or get juristic support in time
Endeavour to get permanently employed, in the long run. Still, many limited-duration workplaces can be seen as a flaw in the CV of your application

Last update: 06/15/2010

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