A fixed term, or time limitation, means that your contract of employment is valid for a specified period of time, for example one year. A time limitation must always be agreed in writing between you and the employer. There are three types of time limitation. Time limitation with no material reason is possible for up to a maximum of two years. Time limitation with material reason (material reasons include standing in for individuals on parental leave or project work) is also possible for longer than two years. In the case of time limitation dependant on task completion, the employment relationship ends when the task has been completed. The specific task must be included in the contract of employment.

IMPORTANT! Legal action may be taken against a fixed term contract three weeks after its termination. You must have registered with the employment agency as seeking employment no later than three months before the end of the contract. If you do not become aware that your work is coming to an end until later, you must inform the employment office within three days of receiving this information. If you do not comply with these deadlines, you run the risk of reductions to unemployment benefit.

More information: https://www.arbeitsagentur.de/arbeitslos-arbeit-finden/erste-schritte-arbeitslosigkeit