Labour law: Chain fixed-term contracts in the public sector

Regional Labour Court Cologne, 13.04.2010, Ref.: 7 Sa 1224/09

In general, it is legally permissible to agree fixed-term employment contracts several times in succession.

This is referred to as a "chain limitation". However, if employees are repeatedly employed on the basis of new fixed-term contracts for a longer period of time in succession, the employment contract can be categorised as only "apparently fixed-term" and the employee has the option of asserting their rights.

In the public sector, chain time limits are regulated in Section 14 (1) sentence 2 no. 7 TzBfG (Part-Time and Fixed-Term Employment Act), which allows public employers to employ employees for a fixed term if they are remunerated from budget funds intended for fixed-term employment and the employees are employed accordingly.

Facts of the Case:

In the case before the Regional Labour Court, an employee objected to the 13th time limit on her employment contract in the public sector. The defendant federal state then invoked the fact that budget funds were only temporarily available and thus justified the time limit.

Judgement of the Cologne Regional Labour Court:

In a recently published decision dated 13 April 2010, 7 Sa 1224/09, the Cologne Regional Labour Court referred a number of questions to the European Court of Justice regarding the interpretation of Section 5 No. 1 of the European Framework Agreement on Fixed-Term Employment Contracts.
the permissibility of fixed-term contracts in the public sector.

The questions relate in particular to Section 14 (1) sentence 2 no. 7 TzBfG (Part-Time and Fixed-Term Employment Act). In this respect, the case law of the European Court of Justice could be of significance for a large number of fixed-term employees in the public sector and also have a general impact on the permissibility of fixed-term employment contracts.

Source: Regional Labour Court Cologne

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Update: The ECJ issued the following judgement on 26 January 2012: https://www.mth-partner.de/rechtsanwaltsblog/arbeitsrecht-eine-kettenbefristung-bei-arbeitsvertragen-ist-nach-dem-eugh-bei-vorliegen-eines-sachlichen-grundes-moglich/

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