ABSTRACT
In Germany, the impact of contract permanency is assessed mainly on a theoretical level, considering both advantages and disadvantages on a societal level as well as those from an employer and employee perspective. On a societal level, temporary employment may be a key element in fighting unemployment. For employers, new hiring strategies have emerged which fit the need to react rapidly to changes in demand. These employer strategies, in turn, may enhance the freedom of employees. However, there are some important drawbacks, as the balance between costs and benefits on a societal as well as individual level remain unclear. For example, temporary employment may act as a bridge towards permanent employment, but it may also be a trap for those alternating between temporary employment and unemployment. From the organisational perspective, temporary employment may also have its costs, as temporaries could negatively affect important performance variables.
