What does the new draft of Labor law provide for Contracts for the employment of  determined time?

The new draft of the Labor Law is changing the provisions of the existing Labor Law in the part of the Contracts for the employment of a determined time in order to ensure greater security and access to employees’ rights.

According to the new draft of Labor Law, it is determined that an employment contract, exceptionally, can be concluded for a time whose duration is determined (employment of a determined time), for performing the same or different works with the same employer, but most for a continuous period of up to two years. The termination between two consecutive employment contracts for a specified time shorter than two months will not be considered a termination of the two -year period. Within the two -year period, the employer and the employee may conclude up to three employment contracts for a determined time.

As an exception, the employment contract for a determined time can take more than two years, if necessary to replace a temporary absent employee until his return to work, performing seasonal work in accordance with Article 36 and performing repeated seasonal work in Compliance with Article 37.

A job based employment relationship is transformed into an indefinite employment, if the employee continues to work with the employer after two years of expiration or if contrary to the limit (to conclude up to three contracts over two years), the employer and the employee sign a new employment contract for a fixed -term employment. Transformation for an indefinite period of time will also apply in the event of a specific employment contract to replace a temporary absent worker, if for the duration of such replacement, employment the temporary absent worker stops.

If the employee continues to work with the employer after the expiry of the deadline for which the employment contract was concluded, it will be considered that he has been based on an indefinite period of time.

With this new draft legal solution, provides, on the one hand, to protect employees from possible abuse by employers to keep employees in limbo on whether their employment relationship will be extended (given that today’s practice shows that employment contracts are usually concluded for a period of one to three months,  and according to the needs of the work, they continue again for a short period), and on the other hand may restrict their employment rights, as no new employment agreement is always concluded that extends only the time limit of importance of it.

Reducing the period for which an employment contract may be concluded at a certain time from the current Labor law (5 years) to 2 years is a sufficient period in which the employer can determine whether there is a need for the employee, whether the employee fulfils the work tasks and criteria for work and whether he should continue to work with the employer for an indefinite period.

What we believe should be regulated by the new Labor Law in this part is that there is no restriction within the two-year period or that the employer and the employee can conclude employment contracts at a determined time as many times as necessary during that period, normally, in order to allow greater rights for both the employee and the employer, because as we noted, no new employment agreement is always concluded that extends only the period of importance of it. 

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