An employment relationship concluded on the basis of an employment contract means stability of employment and the provision of numerous employee privileges. Employers often decide to conclude employment contracts for a trial period and then for a definite period to see if they want to establish permanent cooperation with the employee. This article explains the difference between a fixed-term employment contract and an employment contract for an indefinite period and a probationary period, and also presents all the characteristic features of a fixed-term contract.
The article explains:
- Fixed-term contract – what are its characteristics?
- Fixed-term and indefinite-term employment contract – check the differences
- Fixed-term employment contract – termination of the employment contract
- Fixed-term contract – employee rights
- Fixed-term contract and vacation – how much time off are you entitled to?
- Fixed-term employment contract – payment of contributions and taxes
- Fixed-term employment contracts – additional information
- Fixed-term employment contract and pregnancy
- Fixed-term employment contract – template of necessary elements
- Fixed-term employment contract – template of the document
- Fixed-term contract – how many times can it be concluded?
- Fixed-term employment contract – your questions, our answers
Fixed-term contract – what are its characteristics?
An employment contract is the most desirable form of employment by employees. This is due to numerous privileges, security on many levels and a guaranteed minimum wage. A fixed-term contract can be concluded as the first contract with a given employer or as the second after the expiration of the employment contract for a trial period. It is a fixed-term contract, and thus its content should include its duration or termination date.
Fixed-term and indefinite-term employment contract – check the differences
The main difference between an employment contract for an indefinite period of time and a fixed-term employment contract is the duration of the employment relationship:
- A fixed-term employment contract includes its duration or the date of its termination, after which it is terminated. Termination of an employment contract for a definite period of time with the expiry of the period for which it was concluded does not require any declaration of intent
- An employment contract for an indefinite period of time does not include a date of termination of the contract, which on the one hand gives the employee a sense of stability, and on the other hand, limits his freedom in case he would like to change his place of employment.
However, any employment contract can be terminated.
Fixed-term employment contract – termination of the employment contract
An employment contract may be terminated:
- by agreement of the parties;
- without notice (in special cases, e.g. disciplinary dismissal or serious breach of the employer’s obligations towards the employee);
- with the expiry of the period for which it was concluded (e.g. fixed-term employment contract, probationary employment contract);
- with notice.
Fixed-term employment contract – notice period
The notice period for a fixed-term employment contract depends on the period of employment with the employer. Both the employer and the employee can terminate the employment contract.
- When you have been employed for less than 6 months – the notice period is 2 weeks;
- When you have been employed for at least 6 months – the notice period is 1 month.
After giving notice, both parties may agree to early termination of the contract, then they sign the so-called agreement of the parties, which specifies the date and rules for terminating the cooperation.
Fixed-term contract – employee rights
An employee employed under an employment contract is entitled to privileges that make an employment contract for a definite or indefinite period or a trial period much more advantageous compared to a contract of mandate. As an employee, you are entitled to m.in:
- annual leave;
- the possibility of sick leave;
- free healthcare;
- remuneration in the amount not less than the minimum wage;
- protection of working time.
Employment contract – what else is the employee entitled to?
Although a fixed-term employment contract does not include this in its content, the employee has many rights, which are detailed in the Labor Code:
- Leave on demand, up to 4 days, which is deducted from the pool of annual leave. Only in special cases (for example, when the employee’s absence significantly affects the functioning of the workplace) may the employer refuse to grant it.
- Maternity leave to which every employee is entitled after the birth of a child (or even before) regardless of the type of employment contract.
- Special leave of 1 or 2 days (e.g. in the case of direct care of another person, funeral of an immediate family member, wedding, wedding of a child).
- Two days or 16 hours of leave to take care of your child.
- Compensation for overtime in the form of time off or payment of a cash allowance.
- Notice periods that protect both the employee and the employer – the employer cannot deprive you of work overnight (except in specific situations, e.g. disciplinary dismissal), and you cannot leave your job (except in very special cases, e.g. when work threatens your health).
Fixed-term contract and vacation – how much time off are you entitled to?
In the case of any type of employment contract, the employee is entitled to rest, which includes at least 35 hours of uninterrupted rest per week and at least 11 hours of uninterrupted daily rest.
An employee who is employed under an employment contract is entitled to holiday leave in the amount of:
- 20 days if they have been employed for less than 10 years;
- 26 days if he has been employed for at least 10 years.
Remember that the aforementioned period of work, on which the length of your leave depends, also includes periods of education in the appropriate amount.
Fixed-term employment contract – payment of contributions and taxes
When a fixed-term employment contract or other type of employment contract is concluded between an employer and an employee, the employer pays contributions and taxes for the employee.
Employee-funded contributions that the employer pays for the employee:
- sickness insurance contribution;
- health insurance premium.
Employee- and employer-funded contributions that the employer pays for the employee:
- pension contribution;
- disability contribution.
Financed and paid for by the employer:
- accident insurance premium;
- contribution to the Labour Fund;
- contribution to the Guaranteed Employee Benefits Fund.
The employer calculates, collects and pays the advance payment for income tax.
Fixed-term employment contracts – additional information
When you receive a form of your employment contract or a file that contains its content, read it carefully before signing.
Remember, however, that all arrangements inconsistent with the Labor Code are invalid.
This means that your employer cannot, for example, set a lower wage than the “national minimum wage” or take away your right to overtime compensation in the form of time off or a financial allowance.
It is worth remembering that fixed-term employment is less beneficial for pregnant women compared to permanent employment.
Fixed-term employment contract and pregnancy
The Labour Code guarantees special protection for pregnant women. A fixed-term employment contract that would end after the third month of pregnancy is automatically extended until the day of delivery. However, this rule does not apply to fixed-term employment contracts signed to replace another employee.
“Art.
177 § 3.
An employment contract concluded for a definite period or for a probationary period exceeding one month, which would be terminated after the end of the third of the month of pregnancy, is extended until the day of delivery.
§ 31.
The provision of § 3 shall not apply to an employment contract for a definite period concluded in order to replace an employee during his or her excused absence from work”.
Fixed-term contract and maternity and parental leave
Persons employed under an employment relationship, including fixed-term employment contracts, are entitled to maternity and parental leave. A fixed-term employment contract contains an end date or duration, therefore, if the contract is terminated at the end of its term during maternity or parental leave, the employee loses the right to this leave.
Fixed-term contract and maternity allowance and parental benefit
When a fixed-term contract is terminated on the day of delivery, the employee does not lose the right to maternity benefit, she only has to submit an appropriate application to the Social Insurance Institution.
If the fixed-term employment contract expires before the end of the third month of pregnancy, the employer does not have to extend it.
The woman can then apply for the so-called
“Kosiniakowe” (i.e. parental benefit) within 3 months from the date of delivery.
Fixed-term employment contract – template of necessary elements
The Labour Code specifies exactly what an employment contract should look like. According to the regulations, it must be concluded in writing and include:
- Basic information:
- parties to the contract;
- the employer’s registered office address or the employer’s address of residence, if it is a natural person without a registered office;
- type of contract;
- the date of conclusion of the contract.
- Working and pay conditions:
- the type of work performed (specification of the employee’s profession and its functions or activities that will be entrusted to him/her);
- place of work;
- remuneration and its components (e.g. base remuneration and periodic bonus);
- working hours (e.g. full-time, part-time, etc.);
- the date of commencement of work;
- if it is a fixed-term employment contract: its duration or the date of its termination.
A fixed-term employment contract, like any employment contract, must be drawn up in two copies (for the employee and the employer) and signed by the employee and the employer or a person indicated by the employee. Below you will find a completed template of a fixed-term contract.
Fixed-term employment contract – template of the document
The completed template of the fixed-term employment contract includes the date of its termination. Remember that the date of termination of the employment relationship or its duration is a characteristic feature of a fixed-term employment contract.
Warsaw, 16.05.2024
Company XYZ
Hive.
Horizontal 123
61-000 Warsaw
REGON-PKD number: 123456789
EMPLOYMENT CONTRACT
concluded on 16.05.2024, between Company XYZ, represented by Joanna Nowak, and Krzysztof Kowalkiewicz, residing at 12/6 Niepodległości Street in Warsaw, for a definite period of time from 16.05.2024 to 16.11.2024.
The parties agree on the following terms and conditions of employment:
- type of work: administrative assistant,
- Place of work: the company’s headquarters at ul. Pozioma 123 in Warsaw,
- working time: full-time,
- salary: basic salary PLN 6,000 gross,
- start date: 17.05.2024
16.05.2024 Krzysztof Kowalkiewicz
16.05.2024 Joanna Nowak
Fixed-term contract – how many times can it be concluded?
Every employee wants a secure job, and the greatest stability is provided by an employment contract for an indefinite period of time.
The legislator made sure that short-term contracts were not abused, and in 2016 significant changes were made to the Labour Code.
Fixed-term employment contracts between the same parties to the employment relationship may be concluded for a period not exceeding 33 months, and the total number of these contracts may not exceed three.
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Fixed-term employment contract – replacement contract
Since 2016, the term of the replacement employment contract is no longer used, it has been replaced by a fixed-term employment contract, but slightly different rules apply to substitution. In the case of employment for the period of excused absence from work of another employee, the limits of fixed-term employment contracts do not apply. This means that if necessary, your employer will be able to sign more than 3 fixed-term contracts with you and for more than 33 months.
Fixed-term employment contract – your questions, our answers
Fixed-term contracts – how much will you earn in 2024?
Every employee employed under an employment relationship, which is defined by different types of contracts, including a fixed-term employment contract, is entitled to the minimum wage. In practice, this means that you cannot earn less than your base salary, but you can earn more.
From 1 July 2024, the minimum wage is PLN 4,300 gross, i.e. PLN 3,261.53 net (“take-home”).
Is an employment contract for a year acceptable?
As the name suggests, a fixed-term employment contract includes its duration or termination date, so if the employer determines that they want to hire you for a year, they can do so. An employment contract for one year is a fixed-term contract under which an employment relationship is established.
How long can a fixed-term contract last?
According to the Labour Code, an employment contract for a definite period cannot be concluded for a period longer than 33 months. After this time, if the contract does not expire with the expiry of the period for which it was concluded, the employer is obliged to conclude an employment contract with you for an indefinite period.
Example: A one-year contract with the same employer can be concluded a maximum of two times, the next one can be concluded only for 9 months – so that the period of 33 months is not exceeded.
How many fixed-term contracts?
Fixed-term work has its limits.
An employee may be employed by one employer on the basis of a maximum of three fixed-term employment contracts, the next one must be an employment contract for an indefinite period of time.
However, the duration of fixed-term contracts may not exceed 33 months.
If the employer has already concluded two fixed-term contracts with the employee, the next fixed-term contract, i.e. the third, must be the last contract of this type.
The fourth will be an employment contract for an indefinite period.
Exceptions to the limits – fixed-term contract
The provisions that an employer may conclude a maximum of three fixed-term contracts with an employee, and their total duration may not exceed 33 months, do not apply in several cases:
- replacement of an employee during his/her excused absence from work;
- seasonal or casual work;
- performing work for the duration of the term of office;
- when the employer indicates objective reasons proving that this type of contract serves to satisfy actual, periodic and necessary demand.
A contract concluded to replace an employee for the period of his or her excused absence from work is a fixed-term employment contract.
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Nika Walęcka
Copywriter, author of articles with practical advice that will help you look for satisfying employment. It provides a lot of information that is useful in preparing applications, conducting job interviews and building a professional image.
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