Document background
The Contract to Hire Agreement is utilized when an organization wishes to evaluate an employee's suitability for a permanent position through an initial temporary employment period. This document type is particularly relevant in the German market, where employment relationships are heavily regulated and employers seek to ensure proper fit before making long-term commitments. The agreement covers both the temporary employment phase and the potential permanent position, including specific performance criteria, evaluation processes, and conversion terms. It must comply with German labor laws, including the Civil Code (BGB), Employee Hiring Act (AÜG), and various employment protection regulations. This arrangement provides flexibility for both parties while ensuring legal compliance and clear expectations for the potential transition to permanent employment.
