FAQ: Fixed-Term Contract
Your Rights with Fixed-Term Contracts
A fixed-term employment contract often raises legal questions—especially regarding the permissible duration, validity, and the chances of obtaining a permanent contract. Many employees are unsure whether their fixed-term contract is legally valid or if they are entitled to a permanent employment relationship. If you have doubts about the validity of the fixed-term contract, you should seek timely legal advice, as a challenge to the fixed-term status must be filed within three weeks after the contract expires, to protect your rights.
*where only the masculine form is mentioned in this article, the feminine / diverse form is also included
1. How long can a fixed-term employment contract last at most?
A fixed-term employment contract without an objective justification (Sachgrund) may last at most two years (§ 14 para. 2 TzBfG). Within these two years, the contract may be extended up to three times. If the fixed term exceeds this duration or the number of extensions, the contract is considered to be permanent (unlimited). This conversion to a permanent contract must be asserted in court through a so-called entfristungsklage (action for conversion), which is similar to a dismissal protection lawsuit. Important: The three-week deadline after the expiry of the fixed term must also be observed here.
Important: A longer fixed term is only possible if there is an objective justification (e.g., parental leave coverage, project work, probationary period).
As a specialist lawyer for labor law, I am happy to review whether filing an action for conversion (entfristungsklage) makes sense in your case – request a consultation now!
2. Invalid Permanent Employment Contract – Does the Subsequently Signed Fixed-Term Contract Apply?
If an originally concluded fixed-term employment contract is invalid – for example, due to formal defects (e.g., missing written form or lack of a qualified electronic signature) – the question arises whether a later concluded fixed-term contract is still legally valid.
If you were already actually employed by the employer before the fixed-term contract was signed, this generally constitutes prior employment within the meaning of § 14 paragraph 2 TzBfG. In this case, a subsequent fixed-term contract without objective justification is generally invalid, because the law no longer permits a fixed-term contract without objective justification if there has been prior employment with the same employer. Therefore, the new fixed-term contract can be legally challenged – with the consequence that a permanent employment relationship exists. A different situation applies only if the fixed-term contract is based on a permissible objective justification.
As a specialist lawyer for labor law, I assess your fixed-term contract legally and check, as part of an initial consultation, whether there are chances for conversion to a permanent contract. Contact me now.
3. What is the difference between a fixed-term contract with or without objective justification?
A fixed-term contract without objective justification (§ 14 para. 2 TzBfG) is only permitted under strict conditions:
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It may last no longer than two years.
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Within this period, the contract may be extended a maximum of three times.
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No prior employment with the same employer must exist.
A fixed-term contract with objective justification (§ 14 para. 1 TzBfG), on the other hand, can also be valid for more than two years if there is a legitimate reason – for example:
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Substitution (e.g., parental leave, illness)
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Project work with a fixed end date
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Probationary period of an employee
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Temporary operational staffing needs
4. What is the difference between a fixed-term and a permanent employment contract?
The essential difference between a fixed-term and a permanent employment contract lies in the duration of the employment relationship:
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A fixed-term employment contract ends automatically upon expiration of the agreed period — without the need for termination.
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A permanent employment contract runs for an indefinite period and can only be ended by ordinary or extraordinary termination.
Note: Some permanent contracts include an automatic end date, such as upon reaching retirement age — this is generally legally permissible.
5. Fixed-Term Employment Contract: Is a Digital Signature Valid?
You can find the detailed answer to this question in my blog article: “Fixed-Term Employment Contract with Digital Signature – Is It Valid?”
Author of this article: Janina Aue, Lawyer & Mediator
Please do not hesitate to contact me to discuss how we might work together.
