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World / Europe

German SPD clinch compromise on fix-term contracts

Published: 07 Feb 2018 - 12:51 pm | Last Updated: 11 Nov 2021 - 02:56 pm

Reuters

BERLIN: Germany's conservatives and the Social Democrats (SPD) have agreed to lower to 18 months the limit that employers can set on fixed-term contracts imposed without justification, down from 24 months under current rules, a source involved in coalition negotiations said on Wednesday.

The SPD had vowed to lower the limit on fixed-term contracts to give employees more security, a measure that had been opposed by Chancellor Angela Merkel's conservatives who said it limits the hiring and firing flexibility firms need to stay competitive.