The Labour Code distinguishes three types of employment contracts, including an employment contract for a trial period, an employment contract for a fixed term and an employment contract for an unlimited term. The employer should confirm in writing for the employee the conditions as regards the parties to the contract, its type and terms and conditions, particularly conditions of pay. All changes to the conditions of work and pay require a written form. It is also possible to conclude with an employee a part-time employment contract. Such employment may not, however, result in less advantageous employment terms and conditions in comparison to full time employees who perform the same of similar work.
Unlimited-term contracts are the most common. Recently, however, there is a trend to depart from this form of employment toward fixed-term contracts or agreements in civil law. A fixed-term employment contract is concluded either until an agreed calendar date or until the date, which can be defined by a fact, which will occur in the future.
The period of employment under a fixed-term contract, as well as the total period of employment under fixed-term contracts concluded between the same parties of the employment relationship, may not exceed 33 months, and the total number of the contracts may not exceed three. Moreover if the term of employment under a contract of employment for a fixed-term is longer than the 33 months, or if the number of concluded contracts is higher than three, it is understood that the employee, accordingly as of the day following the lapse of the 33-month period or the date of conclusion of the fourth fixed-term contract, is hired under a contract of employment for an indefinite term. Additionally the agreement between the parties, during the term of a fixed-term contract, upon a longer period of performance of work under the contract, is understood as a conclusion, as of the day following the day of contract termination, of a new contract of employment for an indefinite term. There are four exemptions, when fixed-term employment contracts can exceed the period/number mentioned above:
- for replacement for an employee during their justified absence from work;
- for performance of occasional or seasonal work;
- for performance of work for a term of office;
- if the employer indicates objective reasons attributable to the employer.
The relevant district labour inspector must be notified in writing by the employer in case of conclusion of a fixed-term employment contract, in the event indicated in point 4 above.
An employment contract for a trial period is concluded in the event when, prior to making a decision on initiating an employment relation, one or both parties thereto wish to get acquainted with the conditions of the future execution of mutual rights and obligations at a workplace. It is up to the parties to conclude such an agreement. The trial period may not exceed three months.
Requiring a notice period in an employment contract is acceptable if provisions of law state so. The Labour Code allows for a notice period in a contract concluded for a trial period, for a fixed-term and for an unlimited term. The notice period may vary from two weeks, one month, or three months for both fixed and unlimited terms; and 3 working days, 1 week or 2 weeks for contracts wherein the trial period is concluded. In principle, it is possible, by way of normative agreements, to introduce longer notice periods than the ones provided for in the Labour Code.