📄 Employment contract and fixed term
In brief
An employment contract can be concluded for an unlimited or a fixed term. A fixed term is possible either with an objective reason (e.g. cover for someone, a project, seasonal work) or – under stricter conditions – without an objective reason for a limited time. Every fixed term must be agreed in writing, otherwise the contract is treated as having been concluded for an unlimited term.
How long a fixed term without objective reason may last and how often it can be extended is precisely regulated by law. In July 2026 the Federal Government announced a significant expansion of these rules; as of this page, the law has not yet been passed.
Step by step
- Check the reason for the fixed term in the contractDoes the contract give an objective reason (e.g. "cover for parental leave") or does it rely on a fixed term without objective reason under § 14 Abs. 2 TzBfG?
- Check the written formIf the signature is missing before work starts or there is only an oral agreement, the fixed term is invalid – the contract is then treated as unlimited (§ 16 TzBfG).
- Check prior employmentIf you were previously employed by the same employer – even years earlier – this can rule out a fixed term without objective reason (§ 14 Abs. 2 Satz 2 TzBfG).
- If in doubt, consider a claim against the fixed term in good timeIf you want to assert that a fixed term is invalid, you must bring a court claim within three weeks of the agreed end of the contract (§ 17 TzBfG).
Deadlines
- A fixed term agreed orally or signed afterwards is invalid – you then have a permanent employment relationship, regardless of what was "meant".
- If you simply keep working after the term expires and the employer does not object without delay, this can under certain circumstances result in a permanent employment relationship (§ 15 Abs. 5 TzBfG) – the exact conditions must be checked in each case.
- The 3-week time limit for a claim against an invalid fixed term is often overlooked because there is no formal termination letter to remind you of a deadline.
- Caution, announced change in the law: on 2 July 2026 the coalition committee announced an extension of fixed terms without objective reason to up to 48 months with up to six extensions for employees newly hired from that date until the end of 2030, as well as a relaxation of the ban on prior employment and the abolition of the written-form requirement from 1 January 2027. These plans are political declarations of intent; a law that has been passed, with final wording and transitional rules, did not exist as of this page.
In depth · legal basis, figures and practice – for advisers and professionals
Fixed term with objective reason
§ 14 Abs. 1 TzBfG lists recognised objective reasons by way of example: temporary operational need, following training or study, cover for someone, nature of the work, probationary period, reasons relating to the person, budget-based fixed terms in the public sector and a court settlement. A fixed term without objective reason after several earlier fixed terms without objective reason with the same employer (chain of fixed-term contracts) can be impermissible if it amounts to abuse of rights.
Fixed term without objective reason – current law
Without an objective reason, a fixed term of up to two years is permitted; within this period it can be extended at most three times (§ 14 Abs. 2 TzBfG). It is excluded if there was already an employment relationship with the same employer (ban on prior employment); on this point the Federal Constitutional Court decided in 2018 that prior employment that lies very far in the past or is of a completely different kind can exceptionally be disregarded.
Announced reform (as of September 2026, not in force)
On 2 July 2026 the coalition committee announced that it would amend § 14 TzBfG so that a fixed term without objective reason of up to 48 months with up to six extensions would be possible – limited to new hires until the end of 2030 – as well as relax the ban on prior employment and abolish the written-form requirement for fixed-term contracts on 1 January 2027. As of this page, these plans are political decisions of the coalition leaders, not yet laws that have been passed; implementation, exact wording and transitional rules are still pending.
What happens if the fixed term is invalid
If a fixed term is invalid (e.g. because of missing written form or an impermissible chain of fixed terms without objective reason), the employment is treated as concluded for an indefinite period (§ 16 TzBfG). The employer can then end it only by ordinary or extraordinary termination – with all the requirements that apply to that.
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