A fixed-term employment contract (befristeter Arbeitsvertrag) is the first step for many graduates in Germany. It can be a good start, but only if you know its rules: when a fixed term is lawful, how long it may last, what to watch for on termination and which deadline applies to a legal challenge.
Short answer: Without a material reason (Sachgrund), a fixed-term contract may last at most two years and be extended up to three times (section 14 (2) TzBfG, as of October 2026). The fixed term must be agreed in writing. If you think the fixed term is invalid, you must file a claim with the labour court within three weeks after the agreed end (section 17 TzBfG).
Key points at a glance
- A fixed term needs a legal reason or, without one, may last up to two years, with at most three extensions.
- If you had a contract with the same employer before, a fixed term without a reason is not allowed.
- The fixed term must be agreed in writing; otherwise the contract counts as open-ended.
- Ordinary termination during the term is possible only if it was agreed (section 15 TzBfG).
- The deadline for a claim is three weeks. For registering as job-seeking, the deadline is three months before the end of the contract.
Which reasons may an employer give for a fixed term?
Section 14 (1) TzBfG lists recognised reasons. The employer must state the reason in the contract and prove it if challenged. For graduates, the transition after studies and the replacement of a colleague are the most relevant.
| Reason | Typical example | What to check |
|---|---|---|
| Temporary business need | A project with a fixed end date | The need must be concrete |
| Transition after training or studies | Your first contract after graduation | A typical entry point, with the reason clearly stated |
| Replacement | Parental leave or illness of a colleague | The replaced person should be named |
| Trial period | A test phase for a new role | The trial must be genuine |
| Personal reasons | For example a specific funding arrangement | The reason must be comprehensible |
When is a fixed term without a reason allowed?
Without a reason, a contract may last at most two years. Within this total period, at most three extensions are possible (section 14 (2) sentence 1 TzBfG). Collective agreements may set different rules.
Assumption: a contract starts on 1 March 2027 and runs for six months. You extend it three times by six months each. The contract then ends after 24 months in total, which is two years. A further extension would not be allowed.
The prior-employment ban is the most common trap. If you already had a fixed-term or open-ended contract with the same employer, a fixed term without reason is not allowed (section 14 (2) sentence 2 TzBfG). This also applies to working-student jobs at the same company. Ask before signing whether you worked there earlier.
What applies to written form and termination?
A fixed term is valid only if it is agreed in writing (section 14 (4) TzBfG). A verbal agreement or an email with an end date is not enough. Without written form, the contract counts as open-ended.
During the term, the employer can generally terminate only for good cause (extraordinary termination). Ordinary termination is possible only if the contract or an applicable collective agreement provides for it (section 15 TzBfG). Check the contract for such a clause.
What to do if the fixed term is doubtful?
If you believe the fixed term is invalid, you must file an action for a declaration within three weeks after the agreed end (section 17 TzBfG). If work continues after the end without a new agreement, the deadline starts only when the employer confirms in writing that the contract has ended because of the fixed term.
The deadline runs even if you are unsure. If you miss it, the fixed term is generally treated as valid. Seek legal advice early, before the three weeks run out.
What happens after the contract ends?
If you have no follow-up job, register as job-seeking early with the employment agency. Under section 38 (1) SGB III this must happen at the latest three months before the end. If fewer than three months remain, registration is due within three days of learning of the end. A late registration can lead to a suspension period (Sperrzeit) during which the claim to unemployment benefit is paused (section 159 SGB III).
At universities and research institutions, the Wissenschaftszeitvertragsgesetz (WissZeitVG, Act on Fixed-Term Contracts in Academia, in German) often applies. It sets its own rules for qualification-related fixed terms, which can differ from the TzBfG. If you work at a university, first check which law applies.
Frequently asked questions
Can my contract simply be ended during its term?
Not simply. Ordinary termination is possible only if it was agreed. Extraordinary termination for good cause is not affected. In a dispute, the labour court decides whether the reason is sufficient.
Am I entitled to holiday with a fixed-term contract?
Yes. Holiday entitlement also arises with a fixed term, but for short contracts it accrues pro rata. Check the contract and your payslip so that you know your entitlement and do not lose it at the end.
Can I keep health insurance without a gap after a fixed term?
It depends on how you are insured. If you are in statutory health insurance, check at the switch between contract and unemployment who pays the contributions. A gap can be costly, so ask before the contract ends.
What if the employer promises a follow-up contract?
A promise is not a contract. Do not rely on it, and plan around the agreed end. Put verbal assurances in writing if they matter to you.
Next steps
- Read the contract for the reason, the term, the extensions and any termination clause.
- Check whether you worked for the same employer before, before you sign.
- Note the end date in your calendar and register as job-seeking at the latest three months before it, if no follow-up is in sight.
- If anything is unclear, note the end date and the day the claim deadline expires straight away.
Related guides
- Staying in Germany After Graduation
- Health Insurance After Studies Without a Job: Options and Costs
- Part-Time Jobs and Taxes for Students in Germany
- Student Job 20-Hour Rule, Pension and Semester Breaks
Sources: Section 14 TzBfG, fixed-term contracts (retrieved October 2026, in German); TzBfG, Part-Time and Fixed-Term Employment Act (retrieved October 2026, in German); Section 38 SGB III, job-seeker registration (retrieved October 2026, in German); Section 159 SGB III, suspension during a waiting period (retrieved October 2026, in German).
Last updated: October 2026. This guide is general information, not individual advice.
