A fixed-term contract (befristeter Arbeitsvertrag) ends automatically on an agreed date or when a specific purpose is achieved, without a dismissal. Employers like it because it avoids dismissal protection at the end of the term.
German law limits fixed-term contracts strictly (Part-Time and Fixed-Term Employment Act). If the rules are not met, the contract is treated as permanent. Many expats do not know this and accept the end of their contract without checking.
Fixed Term Without a Reason
An employer can conclude a fixed-term contract without a specific reason for up to two years. Within these two years, the contract can be extended up to three times. Conditions:
- No previous employment with the same employer. If you worked there before, a fixed term without reason is generally not allowed, unless the earlier employment was very long ago.
- Extensions only. An extension must be agreed before the previous term ends and may only change the end date, not other terms.
Special rules apply to new companies, which can agree fixed terms without reason for up to four years in their first four years, and to employees aged 52 or over who were previously unemployed.
Fixed Term With an Objective Reason
A fixed term is also allowed with an objective reason, for example:
- a temporary need for work, such as a project,
- replacing another employee, for example during parental leave or illness,
- a trial period,
- the nature of the work, for example in media or sports,
- funding from a limited budget in the public sector.
The reason must exist when the contract is concluded. Repeated chain contracts with the same reason over many years can be an abuse and make the fixed term invalid.
Free Case Review by an Employment Lawyer
An employment lawyer looks at your case and tells you where you stand and what is realistic.
- Free and non-binding
- In English
- Confidential
Written Form
The fixed term must be agreed in writing, signed by hand by both sides, before you start working. If you start work before both signatures are on the contract, the fixed term is invalid and the contract is permanent. This is a common error in practice.
Challenging the Fixed Term
If you think the fixed term is invalid, you must file a claim at the labour court within three weeks of the agreed end date (Entfristungsklage). If you miss this deadline, the fixed term is treated as valid.
You can also file the claim before the end date. Check your contract and its extensions as soon as your employer tells you that it will not be renewed.
Your fixed-term contract is ending? Have the fixed term checked. If it is invalid, your employment is permanent.
Get Your Free Case Review →Ending a Fixed-Term Contract Early
A fixed-term contract can only be ended early with notice if this is agreed in the contract or a collective agreement. Otherwise, only an extraordinary dismissal for a serious reason or a termination agreement is possible.
Pregnancy, Parental Leave and Residence
- Pregnancy and parental leave do not extend a fixed-term contract. It ends on the agreed date. If the employer refuses an extension because of a pregnancy, this can be discrimination.
- Residence permit. If your permit is tied to the contract, plan early for what happens at the end. See losing your job and your residence permit.
Research and Universities
For researchers at universities and research institutions, a special law applies (Wissenschaftszeitvertragsgesetz). It allows longer fixed terms during the qualification phase and for externally funded projects. Many expats in academia work under these rules.
Unemployment Benefit
When a fixed-term contract ends, there is usually no blocking period. You must register as a jobseeker at least three months before the end date, or within three days of learning that the contract ends if the period is shorter. See unemployment benefit.
Frequently Asked Questions
Do I have a right to a permanent contract after two years?
Not automatically. But a further fixed term without reason is not allowed, so the employer must either offer a permanent contract, have an objective reason or let the contract end.
Can my probation be longer in a fixed-term contract?
Probation in a fixed-term contract must be reasonable in relation to its length.
Does my employer have to tell me if the contract will not be renewed?
No general notice is required for a date-based fixed term. For a purpose-based term, the employer must inform you in writing at least two weeks before the end.
Can I negotiate severance at the end of a fixed term?
If the fixed term is likely invalid, yes. A claim can lead to a permanent contract or a settlement with severance.
