When an employer hires trainees after they’ve successfully completed their training, they typically do so initially through fixed-term employment contracts. These contracts range in duration from a few months to two years.
However, the duration isn’t the only way in which fixed-term contracts can differ.
There are two fundamental differences:
- fixed-term employment with objective grounds and
- fixed-term employment without objective grounds.
This distinction is important because the employment contracts concluded after the end of the apprenticeship are almost always fixed-term employment contracts.
Fixed-Term Contracts with Objective Grounds
The permanent employment following vocational training, which is guaranteed by collective bargaining agreements, can constitute a fixed-term contract based on objective grounds. However, there are other legally recognized grounds for a fixed-term contract, for example when:
- the company’s need for workers is only temporary,
- the employment follows completion of a degree or vocational training, or if
- another employee is to be replaced.
Other reasons may include hiring on a probationary basis, or if the nature of the work or the employee’s personal circumstances justify the fixed-term contract; if the position is funded by public funds earmarked under budgetary law for fixed-term employment; or if the fixed-term contract is based on a court settlement.
Unfortunately, the legislature has not set a maximum limit on the permissible number of fixed-term employment contracts based on objective grounds. It is therefore entirely possible to enter into a large number of consecutive fixed-term contracts. However, this does not automatically entitle the employee to permanent employment. There are also no statutory provisions regarding the duration of fixed-term contracts. Normally, however, the duration of an individual employment contract is determined by the reason for the fixed term, such as a maternity leave replacement.
Fixed-Term Contracts Without Objective Grounds
The situation is different for employment contracts that were entered into for a fixed term without an objective reason, as the law states. In principle, the following applies in this case: A fixed-term contract without an objective reason is only permitted for a new hire. If an employment relationship previously existed between the employee and the employer, a fixed-term contract without an objective reason is no longer permitted.
The only exception is prior vocational training or a student internship at the same company or with the same employer. In this case, fixed-term contracts may be entered into without a valid reason. These employment contracts may be concluded for a maximum period of two years. Within these two years, the fixed-term contract may be extended a total of three times. These employment contracts may be concluded for a maximum period of two years. Within these two years, the fixed-term contract may be extended a total of three times. Collective bargaining agreements may increase the number of extensions or the maximum duration of the fixed-term contract. The regional collective bargaining agreements of IG Metall do not provide for such provisions. In justified individual cases, a corresponding collective bargaining provision may be established for specific companies.
