⏳ Fixed-term employment contracts

Fixed term with or without an objective reason: up to two years without a reason, extendable at most three times. Important: written form before work begins.

fixed term objective reason two years TzBfG extension written form newly founded company

In brief

You can limit an employment contract to a fixed term. There are two ways to do so.

With an objective reason, for example cover for an absent employee, temporary need or trial period.
Without a reason for at most two years. Within these two years, an extension is allowed at most three times.

It is not possible without a reason if the person has already worked for you before.

The fixed term must be agreed in writing, otherwise it is invalid.

Newly founded companies have more leeway in their first four years.

Step by step

Check the reasonIs there an objective reason (e.g. cover for an absent employee)? If not: two-year rule.
Check prior employmentHas the person already had an employment relationship with you? Then a fixed term without a reason is usually not possible.
Agree in writingFixed-term agreement in writing, signed before work begins.
Plan the extensionExtend at most three times, total duration two years.

Deadlines

two years

Maximum duration of a fixed term without an objective reason, extendable up to three times§ 14 Abs. 2 TzBfG

four years

Maximum duration in the first four years after the company is founded§ 14 Abs. 2a TzBfG

five years

Fixed term for employees who have completed their 52nd year, after at least four months without employment§ 14 Abs. 3 TzBfG

Watch out – common mistakes

Without written form of the fixed term, an open-ended employment relationship arises (§ 14 Abs. 4 TzBfG; legal consequence under § 16 TzBfG not evaluated).
A fixed term without an objective reason is excluded if there was a previous employment relationship with the same employer (§ 14 Abs. 2).
The requirements of para. 2a (new company) and para. 3 (older employees) are tied to conditions that can be read in the law.
A fixed-term employment relationship ends without dismissal; the possibility of ordinary dismissal must be agreed (not evaluated).

In depth · legal basis, figures and practice – for advisers and professionals

Objective reasons (§ 14 Abs. 1 TzBfG)

A fixed term is permissible if it is justified by an objective reason. Named are, among others: temporary operational need, following on from training or studies, cover for an absent employee, the nature of the work, trial period, reasons relating to the employee's person, budget funds, court settlement.

Without an objective reason (para. 2)

"A fixed term set by calendar date for an employment contract without an objective reason is permissible for up to two years; within this total duration of two years, up to three extensions of a contract fixed by calendar date are also permissible." Not possible if an employment relationship with the same employer already existed before.

New company (para. 2a)

In the first four years after the company is founded, a fixed term set by calendar date without an objective reason is permissible for up to four years, with multiple extensions within this total duration. Restructurings are excluded.

Older employees (para. 3)

Up to five years are possible for employees who have completed their 52nd year at the start of the fixed-term employment relationship and who, immediately before, were without employment for at least four months, received transfer short-time allowance or took part in a publicly funded employment measure.

Written form (para. 4)

The fixed term of an employment contract requires written form to be effective. Further provisions of the TzBfG (duties to inform, deadline for filing a claim) were not evaluated.

Who is responsible

Lawyers specialising in employment law
Employers' association or IHK/Chamber of Crafts
Labour court (Arbeitsgericht)

Quick questions

Worum geht es bei „Fixed-term employment contracts“?

Fixed term with or without an objective reason: up to two years without a reason, extendable at most three times. Important: written form before work begins.

Which deadlines and figures matter?

two years: Maximum duration of a fixed term without an objective reason, extendable up to three times (§ 14 Abs. 2 TzBfG)
four years: Maximum duration in the first four years after the company is founded (§ 14 Abs. 2a TzBfG)
five years: Fixed term for employees who have completed their 52nd year, after at least four months without employment (§ 14 Abs. 3 TzBfG)

What should I do first?

Check the reason: Is there an objective reason (e.g. cover for an absent employee)? If not: two-year rule.
Check prior employment: Has the person already had an employment relationship with you? Then a fixed term without a reason is usually not possible.
Agree in writing: Fixed-term agreement in writing, signed before work begins.

What do I need to watch out for?

Without written form of the fixed term, an open-ended employment relationship arises (§ 14 Abs. 4 TzBfG; legal consequence under § 16 TzBfG not evaluated).
A fixed term without an objective reason is excluded if there was a previous employment relationship with the same employer (§ 14 Abs. 2).
The requirements of para. 2a (new company) and para. 3 (older employees) are tied to conditions that can be read in the law.

Evidence

TzBfG § 14, gesetze-im-internet.de, retrieved 20 September 2026
NachwG § 2 (Dauer der Befristung als Pflichtangabe), gesetze-im-internet.de, retrieved 20 September 2026

As of

September 2026 · Sources and method

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