Fixed-term employment contract – facts and myths

A fixed-term employment contract cannot be terminated during its term – MYTH

Any employment contract – whether for a fixed term, indefinite term or even a probationary period – can be terminated – and consequently is terminated at the end of the notice period. Notice of termination can be given by both the employee and the employer. However, the notice period depends on the length of employment with the employer.

Three different notice periods may apply:

1. 2 weeks – if the employee has been employed for less than 6 months;
2. 1 month – if the employee has been employed for at least 6 months but less than 3 years
3. 3 months – if the employee has been employed for at least 3 years

Indefinite and fixed-term employment contracts generally differ only in duration – FACT

Amendments to the Labor Code, effective April 26, 2023, essentially equated a fixed-term contract with an indefinite contract. Currently – the biggest and virtually the only difference between the contracts is their duration.

Before the Code’s amendments came into force, a fixed-term contract could be terminated by the employer without a reason for termination. This solution was a remarkable convenience for employers – in theory, they could terminate a temporary contract by notice without cause.

Currently, the termination of both fixed-term and indefinite-term employment contracts requires the indication of a reason for termination.

Termination of a fixed-term employment contract by the passage of time requires additional actions – MYTH

Termination of a fixed-term employment contract occurs at the end of the time for which it was concluded. This occurs automatically and does not require any additional statements or other actions on the part of the employer.

Nor is the employer required to inform the employee that the end of his contract is approaching.

The employer is under no obligation to rehire an employee after a fixed-term contract has been terminated by lapse of time – FACT

There is no obligation on the employer to re-employ an employee whose contract has been terminated by the expiration of the time for which it was concluded. The employer decides whether or not to continue the cooperation on his own. Thus, an employee on a temporary contract has no guarantee of reemployment (or continued employment) after the expiration of the time for which he was hired.

However, an employee employed under a fixed-term contract for at least six months has the right to request a change in the form of employment. Thus, before the end of the contract, the employee may make such a request in order to extend his employment. The employer should grant the request, however, there is no obligation to do so. It is therefore not a guarantee of employment either.

Fixed-term employment contracts can be concluded indefinitely – MYTH

Employment contracts for an indefinite period of time cannot be concluded indefinitely. The Labor Code regulations impose two restrictions – i.e. time and quantity. Thus, the number of fixed-term contracts cannot exceed three, and the total duration of employment under temporary contracts cannot exceed 33 months.

When even one of the above-mentioned thresholds is exceeded (i.e. conclusion of the fourth contract or beginning of the 34th month of employment), the contract automatically, by operation of law, transforms into an employment contract for an indefinite period.

However, time and quantity restrictions do not apply to contracts entered into in the case of:

• replacement of an employee during his excused absence
• performance of work of a casual or seasonal nature
• performance of work during the term of office
• objective reasons attributable to the employer