Particularly for foreign workers, being hired in Germany on a fixed-term basis comes with a fair amount of uncertainty. So how many times can an employer extend a short-term contract before they need to offer an unlimited one?
As opposed to unlimited job contracts, fixed-term contracts are seen as good for employers and bad for employees because they automatically terminate at the end, potentially leaving you without any entitlement to severance pay, unemployment or other protections.
However, especially in times of economic uncertainty when jobs are hard to come by, being hired on a fixed-term contract can allow you to get your foot in the door at a company, and may lead to a more permanent position later on.
Nevertheless, the uncertainty can give you a touch of anxiety about your future: will there be another position opening up to you when your short-term job comes to an end, or will your employer agree to extend your current contract?
You may also worry that being on a short-term contract could affect your residence permit or chances of German citizenship.
READ ALSO: What happens to your work permit if you lose your job in Germany?
The good news is that there are some rules governing short-term contracts. These vary depending on the industry as well as their own justification for needing a short-term worker.
Here’s how long an employers can keep you on a fixed-term contract before they need to offer an unlimited working agreement.
Fixed term employment has a two-year limit in most cases
In Germany, employers can’t keep their employees on fixed-term contracts indefinitely.
Volker Görzel, a lawyer for employment law, told DPA that in most cases a fixed-term contract (without reason) can last for a maximum of two years. During this time, only up to three extensions of six months each are possible.
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So if you were hired for a six-month term initially, your employer could feasibly extend your contract three times without offering you unlimited employment.
READ ALSO: How to know if you’re getting a good severance package in Germany
If your employer keeps you on for a longer period of time, the contractual relationship has effectively become unlimited.
According to Görzel, however, this period may be longer in some industries depending on collective bargaining agreements in place. In these exceptional cases, time-limited employment is usually allowed for a maximum of four years.
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Exceptions are granted for justifiable reasons
Different rules apply to fixed-term contracts when the employer has a justifiable reason (Sachgrund) for requiring labour on a fixed-term.
An example of a legitimate reason for needing a fixed-term worker would be to cover a pregnancy or parental leave that lasts longer than six months.
In this case, theoretically extensions could continue indefinitely. That might occur, for example, if you were to cover one employee’s leave and then another and then another.
That said, this shouldn’t be seen as blank cheque for employers. According to Görzel, there have already been attempts by the judiciary to set some limits here, as well to prevent abuse.
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