Labor law and costs

Employment contracts should be entered into in writing. How-
ever, a lack of written form does not render the contract void or
unenforceable. An employment contract can be concluded for an
indefnite period (permanent contract) or a limited period (fxed-
term contract).

A clause limiting the term of an employment contract is en-
forceable if an acceptable justifcation for the time limitation
exists, e. G. Work on a temporary project. In addition, fxed-term
contracts are also valid without objective justifcation in the fol-
lowing three cases, provided the duration of the contract is fxed
according to the calendar.

– Fixed-term employment for periods of up to two years is per-
missible if the employee has not been employed by the same
employer within the last three years.

– Fixed-term employment is permissible in the first four years
after the formation of a company (start-up period).

– Fixed-term employment is permissible for periods of up to
fve years for employees who are 52 years of age or older at
the time of hiring and have been unemployed for at least four
months immediately prior to commencement of the fxed-
term contract.

This exception also applies to employees who
meet the age requirement, but have not been unemployed
because they were drawing certain transitional benefts or
held a publicly subsidized job.