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May employment be agreed for (a) an indefinite term; (b) a specific period of time; or (c) a probation period?

Article 11 of the Labor Act stipulates that an employment contract shall be deemed to have been concluded for an indefinite period where the employment relationship is not based on a fixed term.

 

The same Article 11 also states the cases in which the employment agreement can be concluded for a fixed term. An employment contract for a definite period is one that is concluded between the employer and the employee in written form, which has a specified term or which is based on the emergence of objective conditions like the completion of a certain work or the materialization of a certain event.  In addition, the provisions of Article 11 of the Act regulate and prevent the successive use of fixed-term contracts by stating that “an employment contract for a definite period must not be concluded more than once, except when there is an essential reason which may necessitate repeated (chain) contracts. Otherwise, the employment contract is deemed to have been made for an indefinite period from the beginning.

 

As for the issue of the probationary period under the mentioned Act, if the parties have agreed to include a trial clause in the employment contract, the duration of the trial term shall not exceed two months. However, the trial period may be extended up to four months by collective agreement. Within this period the parties are free to terminate the employment contract without having to observe the notice term and without having to pay compensation. The employee’s entitlement to wages and other rights for the days worked is reserved.

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