Employment relationship

The employer shall be entitled to establish a fixed term employment relationship and an employment relationship with reduced working time more freely. The fixed term employment may be, in accordance with the Amendment to the Labour Code, agreed, prolonged or renewed for the maximum of three years. At the same time, the Amendment introduces a definition of the term 'renewed fixed term employment' which shall mean employment relationship to be established prior to elapse of 6 months from the termination of the preceding fixed term employment between the same parties.

Furthermore, the Amendment stipulates the following reasons for which the fixed term employment exceeding three years may be prolonged or renewed: (a) substitution of employees, (b) performance of work requiring substantial increase of the number of employees for a transitory period not exceeding eight months in a calendar year, (c) fulfilment of a task specified by the outcome, and also (d) reasons agreed upon in the collective bargaining agreement. The fixed term employment may be also prolonged or renewed in the absence of the above stated reasons over three years with certain categories of employees, e.g. executive employees within direct controlling powers of the statutory body, inventive employee in the area of science, research and development, employees of an employer employing not more than 20 employees, etc.

The employment relationship with reduced working time, in which the working time is less than 20 hours per week, may be terminated by a notice given by the employer or the employee for any reason whatsoever, or without giving a reason. A period of notice shall be 15 days and shall commence on the day in which the notice was delivered.

The Amendment has extended contractual freedom of employers who shall have the right to agree several employment relationships with the same employee, however only for activities consisting in works of a different type, whereas it is expressly stipulated that rights and obligations arising from these employment relationships are reviewed separately. With respect to this provision, the Amendment has repealed the institute of additional activity.

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