Limited Term Contract

Limited Term Contract for Germany

Limited Term Contract Template for Germany

A German Limited Term Employment Contract (befristeter Arbeitsvertrag) is a specialized employment agreement governed by German labor law, particularly the Part-Time and Fixed-Term Employment Act (TzBfG). This document establishes a time-limited employment relationship with a defined end date, requiring specific justification under German law. The contract includes all mandatory employment terms required by German legislation, such as working hours, remuneration, leave entitlements, and notice periods, while specifically addressing the fixed-term nature of the employment relationship and ensuring compliance with German employment protection standards.

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What is a Limited Term Contract?

The Limited Term Contract is commonly used in Germany for project-based work, temporary replacements, or other legally justified fixed-term employment situations. It must comply with the strict requirements of German labor law, particularly the TzBfG, which requires objective justification for fixed-term employment or limits the contract to a maximum of two years without justification (with some exceptions). This document is essential for organizations needing temporary staff, managing project-based work, or covering temporary positions. It includes all standard employment terms while specifically addressing the fixed-term nature of the employment relationship, ensuring legal compliance while protecting both employer and employee interests under German jurisdiction.

What sections should be included in a Limited Term Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Context of the employment relationship and basis for the fixed term

3. Definitions: Key terms used throughout the contract

4. Term of Employment: Specific start and end dates, and justification for the fixed term as required by TzBfG

5. Position and Duties: Job title, role description, and primary responsibilities

6. Place of Work: Primary workplace location and any mobility requirements

7. Working Hours: Regular working hours, break times, and overtime provisions in compliance with ArbZG

8. Remuneration: Base salary, payment schedule, and any guaranteed bonuses

9. Leave Entitlement: Annual leave, public holidays, and sick leave provisions as per BUrlG

10. Probationary Period: Length and terms of the probationary period, if applicable

11. Confidentiality: Obligations regarding company confidential information

12. Data Protection: GDPR and German data protection law compliance provisions

13. Governing Law: Confirmation of German law application and jurisdiction

What sections are optional to include in a Limited Term Contract?

1. Benefits: Additional benefits beyond statutory requirements, used when offering supplementary benefits

2. Company Car: Terms of company car provision, included when a vehicle is part of the package

3. Bonus Scheme: Details of any variable compensation, used when offering performance-related pay

4. Notice Period: Early termination provisions, if allowed under the fixed-term agreement

5. Post-Contractual Non-Compete: Non-competition restrictions after contract end, if required for senior positions

6. Works Council Provisions: Reference to works council agreements, required if a works council exists

7. Training Obligations: Specific training requirements and commitments, if part of the role

8. Travel Requirements: Business travel terms and compensation, if regular travel is expected

What schedules should be included in a Limited Term Contract?

1. Job Description: Detailed description of role, responsibilities, and reporting lines

2. Company Policies: Reference to or inclusion of relevant company policies

3. Bonus Scheme Rules: Detailed rules and calculations for any variable compensation

4. IT and Communication Systems Policy: Rules regarding use of company IT systems and equipment

5. Company Car Policy: Detailed terms for company car usage if applicable

6. Working Time Recording: Procedures for recording working hours as required by EU law

Authors

Alex Denne

Head of Growth (Open Source Law) @ ��Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Agreement Between Company And Employee

German law-compliant employment agreement establishing terms and conditions between employer and employee, incorporating essential protections under German labor legislation.

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What is a Limited Term Contract?

What sections should be included in a Limited Term Contract?

What sections are optional to include in a Limited Term Contract?

What schedules should be included in a Limited Term Contract?

Authors

Alex Denne

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