An employer can be a natural person who runs a business as well as a private person who does not run a business and an organizational unit (e.g. a limited liability company). An employee can be a person of full age. An employee performs a certain type of work for and under the direction of an employer. This takes place at a place and time designated by the employer. The employer is obliged to pay remuneration for the work performed. All the details mentioning, among others, the place, time and remuneration are included in the contract, which is signed by both the employer and the employee. Read the article to the end and find out what types of employment contracts there are.
Types of employment contracts – probationary, definite and indefinite
Depending on what type of contract you as an employer choose, there will be different prodcedures for its termination. An employment contract is defined as one of three contracts:
- probationary contract
Usually the employer initially hires an employee for a contract for a trial period. The purpose of this is to check the skills and qualifications of the employee. Such a contract can be signed for no longer than 3 months. In exceptional cases you can hire the employee again for a trial period. This is possible if he/she is to perform another job (e.g. another position). In the latter case, at least 3 years must have passed since the expiry or termination of the contract.
- contract for a fixed period
If you are employed under this type of contract, you must notify the National Labour Inspectorate within 5 days of signing the contract, stating the reason for the fixed-term contract. When you sign the contract, you must also provide objective reasons that justify the conclusion of such a contract. There are two options for a fixed-term contract. The first is to conclude no more than 3 contracts for a total period not exceeding 33 months. A contract for a trial period is not counted. The second option is to employ the same employee for a total period longer than 33 months or to conclude more than 3 contracts. To use this solution you must have reasons specified in the Labor Code. These include, among others, the reason for replacing the employee during his justified absence from work, performing work for a term of office (e.g. in situations defined in the Code of Commercial Companies) or performing seasonal or casual work.
- contract for an indefinite period of time
If the term of the contract is longer than 33 months or if more than 3 contracts are concluded, it is assumed that the employee is employed under a contract for an indefinite period. It is effective from the next day after the expiration of 33 months or from the date of the fourth fixed-term contract.
