For the above reasons, an employment relationship between an employee and an employer can be limited in time. The fixed-term employment relationship ends with the expiry of the agreed calendar period (calendar fixed-term) or with the achievement of a certain agreed purpose (purpose fixed-term). In both cases, there is no need to Cancellation of the employer or the employee. The employment relationship ends automatically in both cases. From time to time, however, it is possible that the employee simply continues to go to work and wants to do so. If the work is continued without any objection from the employer, an unlimited employment relationship is established. The employee is therefore permanently employed by the company.

It reflects a similar situation if the two parties, employee and employer, have only agreed a fixed-term employment contract verbally. It is important that the employee has actually started work. The reason for this is that the fixed term must be in writing (mostly in an employment contract itself). If this is not the case and the necessary written form was not observed, this can only be cured (i.e. made "correct") if the fixed term was subsequently issued in writing. However, employees who also enjoy special protection against dismissal, such as expectant mothers or disabled persons, do not enjoy increased protection against dismissal under the TzBfG (Part-Time Fixed-Term Employment Act). 

Therefore, according to § 14 TzBfG The same principle of an objective reason applies equally to all fixed-term employment contracts, without any distinction being made between persons with and without special protection against dismissal. Therefore, an objective reason is also required for the fixed-term employment of a senior executive. Under the old law, a senior executive was also sometimes considered to have a severance payment in the event of leaving the company as an objective reason for a fixed term. This is no longer acceptable under current law. Severance pay alone is not a material reason for a fixed term; rather, severance pay is fair compensation for a fixed term without a material reason.

The factual reasons are only as stated, subject to § 14 TzBfG permissible. This included fixed-term employment in the case of first-time employment in the first two years, the establishment of a new company in the first four years from establishment and the fixed-term employment of an older person, even from the age of 52, if he or she was previously unemployed for at least four months within the meaning of Section 138 I No. 1 SGB III, received transfer short-time allowance or participated in a publicly funded employment measure under SGB II or III. Under these conditions, a total fixed term of 5 years with multiple extensions is also permissible.

If there is a fixed term for a specific purpose with regard to the employee, it is the case in foreseeable cases that an exact end date is not apparent. For example, a fixed term is for a project that has a certain goal. In this case, the employer must grant the employee a sufficient period of time for the work to end so that the employee can adjust to the end of the employment relationship and look for a new job. This period is referred to as the "minimum notice period". Basically, employers also have the option of merely advancing a factual reason for a fixed term in order to prepare for later eventualities. An advance reason for a fixed term is deemed to exist if the duration of the fixed term significantly exceeds the time frame resulting from the reason for the fixed term. 

As an example, the time limit for testing is often used, which seems more than questionable for a job with very simple and easy requirements, or a very long probationary period is considered to be agreed. The factual reason for the fixed-term employment relationship also has a specific point in time at which it must be present. The point in time is therefore unambiguously this at the conclusion of the contract between the employee and the employer. The circumstances for the time limit must therefore already exist or occur in the very near future. If the reason for the fixed term ceases to exist later, for whatever reason, this does not call into question the validity of the fixed term.

However, if the fixed term is shorter than is actually evident from the factual reason, this is basically irrelevant with a fair view of the employee. This measure to make the fixed term shorter is then an entrepreneurial free decision of the employer. The employer is also subject to a forecasting principle. This means that for all factual reasons within the meaning of the § 14 TzBfG - apart from a few exceptions such as § 14 I No. 8 TzBfG - must make a forecast with regard to the discontinuation of the employee's need for employment. The prognosis depends on the reason for the fixed term itself. 

A good example of this is the § 14 I No. 1 TzBfG (fixed-term employment if the operational need for the work performance is only temporary). In this case, the employer must make it clear with a very sufficient degree of probability that there is no longer any need for the employee to continue working after the fixed term.

The time of the conclusion of the contract is also decisive for this prognosis. Thus, German courts also only have to review the circumstances at this point in time from an objective perspective. Reasons that only arose later, after conclusion of the contract, have no influence on the validity of the time limit; this serves the burden of presentation and proof. In general, the general rules of the burden of proof also apply here. Thus, the burden of proof must be borne by the party who wishes to derive the more favorable legal consequence for himself. Since the unlimited employment relationship is the normal case, as mentioned above, the employer generally has the burden of proof for the existence of a factual reason.

If an employee wishes to defend himself or herself against a fixed term, he or she can do so by filing an action for a declaratory judgment. In this case, it is established that the employment relationship has not been terminated due to the fixed term (the so-called action for a fixed term). If the employment relationship is continued after the agreed end, the period begins with the receipt of the employer's written declaration that the employment relationship has been terminated due to the fixed term.

It should be noted, however, that the statutory provisions under the TzBfG may not be deviated from by an individual agreement between the employer and the employee.

Is it possible to convert a permanent employment relationship into a fixed-term employment relationship? This is possible according to § 14 I TzBfG However, here, too, a factual reason is required for the subsequent limitation of a previously unlimited employment relationship. The § 14 I TzBfG However, the same applies if the term of a contract concluded in accordance with the § 14 II TzBfG The term of a fixed-term employment relationship without a factual basis should be shortened subsequently. Therefore, if the fixed term is shortened, a factual reason is again required, even if none was previously required for the actual fixed term.

It is also often problematic that the employer acts inconsistently with his promises. For example, the employer may promise the employee that he or she will continue to employ him or her after the expiration of the fixed term. The employer is also bound to this according to general principles. However, the promise must be made by a person who was authorized to hire an employee. It must be objectively recognizable that the employer wishes to commit to the employee. This includes not only statements but also implied actions by the employer. 

However, the mere prospect of being taken on does not give the employee a full entitlement to this. However, it is important that the employer has created an objective trust in the employee during his employment that he will be taken on. This would be, for example, the probation within the fixed term. However, the employer must also confirm this probation, preferably in writing.

Meanwhile, however, the employee may not act inconsistently by applying to other employers. Then his possible claim is forfeited through reliance. In case of doubt, the employer is also liable for damages if he creates this trust and then disappoints the employee without cause. The liability for damages then relates to the fact that the employee may have turned down other possible job offers. Since the relationship of trust with the employer would create a more favorable situation for the employee, the employee also bears the burden of proof for the relationship of trust. It should be noted that the claim for continued employment is best derived from the employer's conduct and its implied offer of employment than from a disappointed trust between the two parties.

The employee's claim for equal treatment to be continued in employment for an unlimited period after his fixed term has not yet been conclusively clarified. The Federal Labor Court has therefore rejected the claim for the reason that the employer is basically free in his decision to grant preferences or not. Only because the employer has so far continued to employ employees from a fixed-term contract is therefore so far unproblematically irrelevant for the individual case. The employer is just as free to conclude contracts as the employee himself. It is thereby justified thus not obligated to further employ each employee. If the employee wants to substantiate such a claim, he must be able to prove that he was clearly disadvantaged compared to other employees under similar or rather the same conditions.