Employment Models: Fixed-Term Contracts
Germany’s different employment models allow investors to select from a range of ﬂexible employment solutions including unlimited and ﬁxed-term contracts. Although standard employment contracts are not generally time restricted (though they do normally include a probation period of up to six months), companies are free to offer ﬁxed-term contracts. Such contracts automatically expire on a speciﬁed date. The employer then decides whether to renew the contract or otherwise.
Employment Models: Temporary Employment Temporary labor can easily be used to meet peak time and other demands. There has been constant growth in the German temporary labor sector since it was opened up by sweeping liberalization measures in 2004. At present, there are more than 600,000 people employed in the temporary labor market. There are many temporary employment agencies providing appropriate personnel at short notice. The duration and the terms of employee service termination in the hiring company are not subject to labor regulations but are set out in the service contract between the hiring company and temporary employment agency.
General working conditions (such as weekly working hours and wage levels paid) are usually laid out ac- cording to collective agreements between unions and the respective temporary labor market. There are many temporary employment agencies providing appropriate personnel at short notice. The duration and the terms of em- temporary employment industry employers’ associations. These collective agreements provide ﬂexible working hour models by using working hour accounts to adjust the demand of the hiring company according to working time regulations.
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