Fixed-term employment. The possible effects of abolishing ungrounded fixed-term employment

Abstract

"In this Statement, IAB is commenting on a draft law of the parliamentary party The Left relating to the so-called 'sachgrundlose Befristung' of temporary working contracts (that is, arranging a fixed-term contract without substantial reasons). At the present time, employers can employ staff for up to two years on a fixed-term contract without providing reasons. In its draft law (printed document 18/7), the parliamentary party The Left is speaking out in favour of abolishing the possibilities of fixed-term contracts without substantial grounds in the law on part-time and fixed-term work. Accordingly the admissibility of agreeing a fixed-term contract should be limited to the effect that there must always be an objective reason for it. From the point of view of IAB it is doubtful whether the abolition of fixed-term contracts that do not have substantial grounds is an adequate instrument to produce more employment security. On the one hand, establishments have alternative methods of flexibilisation at their disposal: they can increasingly fall back on fixed-term contracts that do have a substantial reason, and alternative forms of employment such as temporary agency work or freelance work. On the other, there would be the risk - if fixed-term contracts without substantial grounds are abolished - that employers exercise restraint in recruitment and that their scope for flexibility becomes restricted. For this reason it is not very likely that the discontinuation of fixed-term contracts without substantial grounds will lead to a clear increase in permanent recruitments. After all, empirical analyses indicate that fixed-term contracts without substantial grounds in particular are frequently used as an extended probation period and act as a springboard to permanent employment." (Author's abstract, IAB-Doku) ((en))

Cite article

Hohendanner, C. (2014): Befristete Beschäftigung. Mögliche Auswirkungen der Abschaffung sachgrundloser Befristungen. Öffentliche Anhörung von Sachverständigen vor dem Ausschuss für Arbeit und Soziales des Deutschen Bundestags am 17. März 2014. (IAB-Stellungnahme 01/2014), Nürnberg, 13 p.