Effectiveness Time-limit

The effectiveness of the time limit is subject to various conditions. An erroneous fixed term leads to an employment relationship of indefinite duration.

Effectiveness Time-limit/ Pöppel Rechtsanwälte

A fixed-term employment contract is given if the employee is employed under a contract of employment concluded for a fixed period of time. It is irrelevant whether the time limit is determined by the calendar or by the type, purpose or nature of the work performance.

An employment contract may not be limited in time without an objective reason. The law gives some examples: The most important reasons are a fixed-term contract for testing purposes and a fixed-term contract based on only temporary operational needs, as in the case of a sickness replacement. If an objective reason is not given, a fixed term of two years is not permitted. However, exceptions apply to company founders.

Without the employee’s consent, the employer cannot unilaterally limit the contract after it has been concluded. This can be achieved with a change of notice. Otherwise, the employer only has the option of termination.

If there is an unlawful fixed term, the employee can claim that the fixed term of his employment contract is legally invalid. In this case, the employee must file a so-called action to review the fixed-term employment contract with the competent labour court within three weeks after the agreed end of the fixed-term employment contract, cf. § 17 sentence 1 TzBfG.

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