Curbing flexible work: stricter rules for temporary contracts from 2025

As of 1 January 2025, the rules governing the use of temporary contracts are being tightened. With this measure, the government aims to counter insecurity in the labour market and offer employees better prospects of a permanent position.

Under the new legislation, employers may offer a maximum of two temporary contracts within a period of two years. After that, a permanent contract must be offered. The current arrangement, under which three temporary contracts over three years are possible, will be abolished.

Employer organisations have voiced criticism, as they fear the measure will limit their flexibility, particularly in sectors where seasonal work and project-based deployment are important. Trade unions, however, welcome the change because it gives employees more stability and security.

The new legislation is part of a broader reform of the labour market, which also includes stricter oversight of false self-employment and better protection for on-call workers. The measure is expected to have the greatest impact on sectors such as hospitality, retail and logistics.