GermanyWhat is a temporary employment contract and when is it allowed?
A temporary (fixed-term) employment contract in Germany ends automatically when its agreed duration expires and is only allowed for objective reasons or up to 2 years with no reason required, under strict limits.
What the Law Says
German law strictly regulates temporary (fixed-term) employment contracts to prevent abuse and protect workers’ job security. While permanent contracts are the default, fixed-term contracts are permitted only under specific conditions set out in the Part-Time and Fixed-Term Employment Act (Teilzeit- und Befristungsgesetz — TzBfG), not the Civil Code alone. BGB § 620 confirms that fixed-term service relationships end automatically at expiry but defers core rules to the TzBfG.
Under German law, a temporary employment contract (befristeter Arbeitsvertrag) is one concluded for a defined period — e.g., 6 months, 18 months, or until completion of a specific project. Unlike indefinite contracts, it terminates automatically upon expiry without requiring notice.
The legality of such contracts is governed primarily by the Teilzeit- und Befristungsgesetz (TzBfG), referenced in BGB § 620 Abs. 3. A fixed-term contract without a material reason (sachlicher Grund) may last no longer than 2 years and may be extended no more than three times within that period.
If a valid objective reason exists — such as substitution for an absent employee, a time-limited project, or probationary hiring — the contract may exceed 2 years, but still requires justification under § 14 TzBfG. Repeated use of fixed-term contracts to avoid permanent hiring is prohibited.
Statutory TextFür Arbeitsverträge, die auf bestimmte Zeit abgeschlossen werden, gilt das Teilzeit- und Befristungsgesetz.
— BGB § 620 — German Civil Code
What Courts Have Said
German courts closely scrutinize fixed-term contracts to ensure compliance with statutory limits and prevent circumvention of worker protections.
Temporary agency workers (Leiharbeitnehmer) must receive equal pay to comparable permanent employees of the user company after nine months of assignment, unless a collective agreement provides equivalent compensating benefits.
What to Do
Check whether your fixed-term contract includes a valid objective reason (e.g., project work, maternity cover) — if not, confirm it complies with the 2-year / 3-extension limit.
If your contract is renewed repeatedly without justification, you may have grounds to claim conversion to an indefinite contract.
After 9 months of assignment, temporary agency workers should verify they receive equal pay compared to permanent staff at the user company.
Keep copies of all contracts and extensions — these are essential if challenging legality before a labor court (Arbeitsgericht).
Sources
Related Questions
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.