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Concluding a Fixed-Term Employment Contract

Law presumes that an employment contract is concluded without a term. If the employer wishes to conclude a fixed-term contract with the employee, they must have a reasonable excuse related to the temporary nature of the work. This means a special working conditions’ case and therefore, the employer must notify the employee in writing about the duration of and reasons for concluding a fixed-term employment contract. When this obligation is not adhered to, the employment relationship is regarded as permanent. Mutual agreement between parties is the prerequisite of concluding a fixed-term employment contract.

A fixed-term employment contract can be concluded in two cases:

  • Work is of temporary nature (e.g., workload has temporarily increased, seasonal work, temporary work at a lease company);
  • For replacing a temporarily absent employee.

A fixed-term employment contract may be concluded for up to 5 years. The Employment Contracts Act does not prescribe the minimum duration, thus, the fixed-term contract may even be concluded for a couple of days. The fixed-term contract may also be concluded for replacing a temporarily absent employee, for example, until the employee returns from the maternity leave. The fixed term of the contract may be limited with a specific date or event (return of the absentee to work).

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