Changes to fixed-term employment contract, lay-off notice period and re-employment obligation

The changes will enter into force on 1 June.

Conclusion of a fixed-term employment contract without justified reason

A fixed-term employment contract may in future be concluded without a justified reason when

• it is the first employment relationship between the employer and the employee, or
• at least five years have passed since the previous employment relationship between the employer and the employee ended at the time the contract is concluded.

A fixed-term employment contract concluded without a justified reason may last for a maximum of one year.

The chaining of fixed-term employment contracts will be restricted. A fixed-term employment contract without a justified reason may only be concluded once.

The employer must not conclude or refrain from concluding a fixed-term employment contract on discriminatory grounds such as pregnancy, childbirth or family leave. If more than one such contract is concluded without a justified reason, or if the duration exceeds one year, the contract is considered valid until further notice.

Employer obligations

The reform of employer obligations strengthens the position of employees.

• Both the employer and the employee have the right to terminate a fixed-term employment contract that has been concluded without a justified reason and has lasted at least six months. The employer must have a justified reason for termination.
• Before the employee’s fixed-term employment ends, the employer must provide a justified explanation of the possibility of employing the employee on a permanent basis or under a fixed-term employment contract based on a justified reason.
• The employer must offer work to the employee if a fixed-term employment contract concluded without a justified reason is about to end and the employer is considering hiring for the same or similar duties. This obligation continues after the contract ends for a period corresponding to one third of the duration of the employment relationship, up to a maximum of four months.

Notification of lay-off

The lay-off notice period will be shortened from 14 days to seven days, and it will also become possible to agree otherwise on the lay-off notice period. The lay-off notice period may be agreed locally at the workplace with the employee representative.

The lay-off notice period refers to the period during which the employer must notify the employee of the lay-off. The employer may agree with the employee representative to apply a seven-day notice period instead of a longer period specified in a collective agreement. The agreement must be made in writing.

Re-employment obligation

The re-employment obligation will in future apply to employers with at least 50 employees.

The re-employment obligation applies when the employer needs employees for the same or similar duties from which an employee was dismissed on production-related or financial grounds four months earlier. If the dismissed employee is registered as a jobseeker in public employment services, the employer must offer the position to them.

If the employment relationship has lasted at least 12 years, the re-employment obligation continues for six months.

• Making an employment contract
• Lay-offs from the employer's perspective
• Dismissal and termination of employment relationship as an employer
• Employment relationship and employment contract
• Resignation