The employment contract is required to be in writing and must contain certain elements pertinent to the employment. In case the work is performed periodically, the employment contract shall stipulate or provide the basis for calculation, when the work is performed.
The main rule is fixed employment. Temporary employment engagements shall not exceed 15% of the total number of employees in the undertaking, of course it is always permissible to enter into such engagement with at least one employee in the company.
An employment contract may include a “trial period” for a maximum of six months. To be valid, the trial period must be regulated in the written employment contract. During the trial period, the threshold for a legal dismissal with a notice period due to circumstances related to the employee is considered to be somewhat lower. The notice period within the trial period cannot be shorter than is 14 days, and runs from day to day.
During the trial period, the notice period is only 14 days. The employment contract may provide for a shorter or a longer notice period. Notice of termination given during the trial period runs from the date the employee received the notice.
It is common for employment contracts to have a mutual notice period of three months. The notice period may also be agreed upon through collective agreements. If an employment contract is terminated after at least ten years of continuous employment with the same employer, the notice period is prolonged to at least four months if it takes place after the employee has reached 50 years of age, at least five months after the age of 55, and at least six months after the age of 60.