Time limit

Fixed term in the employment contract

Fixed-term employment is regulated by law in the Part-Time Employment Act (Teilzeitbefristungsgesetz).

A fixed term is generally permissible if one of the objective reasons specified in Section 14 (1) sentence 1 TzBfG (Part-Time Employment Act) applies. However, a fixed term is also permissible without an objective reason in accordance with Section 14 TzBfG if, for example, the total duration of 2 years is not exceeded and the employment relationship is extended a maximum of three times.

For most employees, the provisions of the Dismissal Protection Act apply after the end of the probationary period. As a result, it can be more difficult to dismiss an employee. We have summarised the law on dismissal under the headingCancellation described in detail. In principle, an employer cannot give notice of termination without further ado. For this reason, fixed-term contracts are increasingly favoured by employers and included in employment contracts. This allows the employer to avoid the uncertainties of potential dismissal protection proceedings and other dismissal protection regulations.

Due to the complexity of the issue of fixed-term employment contracts, particular caution is required when drafting and interpreting fixed-term contracts.

Requirements for an effective time limit

The fixed term must be in writing. The written form is one of the formal requirements for an effective fixed term. A later agreement on a fixed term or even a subsequent written agreement can lead to invalidity. When agreeing on a fixed term, it must also be ensured that the contract can be terminated prematurely, as without this the right to ordinary termination before the end of the fixed-term period is excluded.

A fixed term may be agreed in certain cases. These cases include the factual reasons listed in Section 14 TzBfG. According to the latest case law of the European Court of Justice, the objective reason stated in Section 14 TzBfG for the first fixed-term contract for a person over 58 years of age is not permitted, as this constitutes unlawful age discrimination.

However, the employee who doubts the validity of the fixed term must file an action for cancellation of the fixed term before the competent labour court within 3 weeks of the end of the fixed term.

The lawyers at LAWMUC can help you resolve the uncertainties of a fixed-term employment contract. Call us without obligation. We will be happy to advise you.