What is new?
Until now, a fixed-term contract without objective reason after reaching retirement age usually failed because of the prior-employment ban: under Section 14(2) sentence 2 of the Part-Time and Fixed-Term Employment Act (TzBfG) it is not permitted if the employee was previously employed by the same employer. The new Section 41(2) SGB VI, in force since 1 January 2026, exempts employees who have reached the standard retirement age from this ban.
Two conditions apply:
- Each individual fixed-term contract must meet the requirements of Section 14(2) sentence 1 TzBfG – a total duration of no more than two years with no more than three extensions.
- With the same employer, a total of eight years and twelve fixed-term contracts must not be exceeded.
According to the legislative reasoning (Bundestag printed paper 21/1929, p. 29), each individual fixed-term contract must still stay within two years and three extensions; the eight-year limit is a ceiling for all such contracts with the same employer – what counts is the employer, not the position. The eight years therefore cannot be reached with a single contract, but it is possible, for example, to conclude a two-year fixed-term contract four times in succession.
What remains unchanged
- No ground for dismissal: entitlement to an old-age pension does not justify a dismissal under the Protection Against Unfair Dismissal Act.
- Postponement: if the contract ends on reaching retirement age, the parties can postpone the end date during the employment – even several times.
- Text form for retirement-age clauses: an agreement that employment ends on reaching retirement age only requires text form; the written-form requirement of Section 14(4) TzBfG does not apply to it.
The options now available
- Postponing the end date – while the employment continues and a retirement-age clause exists. The agreement must be made before the original end date.
- A new fixed-term contract without objective reason under Section 41(2) SGB VI – even after the employment has ended, e.g. when former employees return after retirement.
- A fixed-term contract with objective reason, for example as a replacement or for a specific project.
- Open-ended continued employment – if no retirement age has been agreed, the employment simply continues.
Points to watch
- Written form of the fixed term: a fixed term under Section 41(2) SGB VI still requires written form (Section 14(4) TzBfG), signed by both parties before work begins.
- Document the limits: employers should record the number of fixed-term contracts and the total duration.
- Collective agreements and church employment regulations may contain their own rules.
- Pension, tax and social security aspects should be clarified separately.
