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After a tough struggle over the coalition agreement in 2018, the governing parties decided to implement stricter regulations on fixed-term contracts in this legislative period.
A first attempt on this was already made just one year after the coalition negotiations, but it did not even result in a draft law. However, on 14 April 2021 the Federal Ministry of Labour and Social Affairs (BMAS) has finally presented such a draft law.
The central points of this draft bill are based on the agreements of the coalition agreement.
Regarding fixed-term employment contracts without material reasons the draft bill states the following:
Changes shall also be made to fixed-term employment contracts with material reason:
However, it seems doubtful whether this draft law will make it through the legislative process in the remaining months of this legislative period until the federal elections in early autumn. It seems that the current election campaign is the reason for the presented draft law. The implementation of restrictions on the law on fixed-term employment contracts was one of the key demands of the SPD party convention for the coalition negotiations with the CDU/CSU.
Should the draft law actually be implemented as presented, employers should prepare themselves in good time that they will be obliged to comply with the citation requirements as of January 2022 and, if the company is of a corresponding size, they will have to determine the quote of fixed term employment contracts without material reason and provide this information to the works councils.
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