Edited: 13.02.2015 - 08:48
Keywords: Employment terms and conditions
Fixed-term employment contract
Fixed-term employment contracts are valid until the end of the fixed period or on completion of the agreed work.
As a general rule, a fixed-term employment contract cannot be terminated by either party, but it will terminate at the end of the fixed period. Premature termination of such an employment contract may even lead to liability for damages. If you wish to terminate a fixed-term employment contract, the best course of action is usually to discuss it with your employer; in most cases, you’ll reach the best outcome by agreeing together on how to proceed in such a situation.
A fixed-term employment contract may only be concluded for a justified reason. This may be substitution for another employee’s period of absence. Repeated use of fixed-term contracts without a justified reason is prohibited.
If there have not been any proper grounds for using a fixed-term employment contract, the contract is considered to be valid indefinitely regardless of the fact that it has been specified for a fixed term. However, the Employment Contracts Act (55/2001) does not set restrictions on concluding a fixed-term employment contract on the employee’s own initiative.