Temporary work agreements: comprehending permissible and prohibited aspects
A year-long job agreement: For numerous individuals, it's a great beginning to their career. Yet, in the long term, a limited-duration employment arrangement can bring about apprehension and pressure. What is permissible?
An everlasting job agreement brings peace of mind and certainty, and it's also beneficial when securing accommodation. However, not all positions are filled on a permanent basis. In such scenarios, it's crucial for employees to understand their rights. Samia Wenzl, a lawyer at the Saarland Chamber of Labor, clarifies which legal provisions apply, which exemptions are plausible, and what employees should focus on with fixed-duration employment agreements.
How regularly can an employment agreement be fixed-duration?
The frequency at which an employment agreement can be fixed-duration depends on whether a legitimate reason exists. Examples include a short-term labor requirement in the company or hiring someone to replace another employee. For fixed-duration contracts with a legitimate reason, there's no set upper limit on how many times a contract can be fixed-duration. "However, case law imposes limitations on the misuse of supposedly 'chain employment contracts' and checks whether the duration and number of fixed-duration contracts are reasonable in the specific dispute," says Wenzl.
For fixed-duration contracts without a legitimate reason, the law permits a maximum of two years, with the contract being extendable up to three times within that period. Exceptions are possible, such as in cases of collective agreement deviations, new companies, and for employees over 52 years old who were previously unemployed.
Additionally significant: A fixed-duration contract without a legitimate reason is generally not allowed if there was already a prior employment relationship with the same employer. However, there can also be exceptions here, such as "if the prior employment relationship was already a long time ago, very different in nature, or of very short duration," says the lawyer. Whether this exception applies is determined by the labor court in case of doubt.
What is a purpose-limited contract?
In a purpose-limited employment agreement, the term is tied to the occurrence of a specific event whose time is still uncertain at the time of the agreement, such as standing in for an ill employee. In these cases, the employment relationship does not end on a set date, but as soon as the purpose is achieved. The employer must inform the employee in writing at least two weeks before the end of the employment relationship, specifying when the purpose has been accomplished.
What if the fixed-duration contract is invalid?
If a fixed-duration contract is invalid and no agreement can be reached with the employer, employees have the option of filing a lawsuit with the labor court within three weeks after the agreed end of the employment relationship.
Can I just terminate a fixed-duration employment agreement?
"A fixed-duration employment agreement ends automatically upon expiration of the term, without the need for termination," says Wenzl. A fixed-duration employment agreement can only be properly terminated before the end of the term if this is explicitly provided for in the employment or collective agreement. However, those who still want to end the employment relationship can usually reach an agreement with the employer on a settlement agreement.
The lack of a permanent job agreement can lead to uncertainty and stress, but fixed-duration contracts with legitimate reasons don't have a set limit on repetition. According to Samia Wenzl, misuse of multiple fixed-duration contracts is subject to legal limitations.
In the absence of a legitimate reason, fixed-duration contracts are capped at a maximum of two years with potential extensions, except in specific circumstances such as new companies or certain employee categories.
