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Fixed term employment contract

As a rule, individual employment contracts are concluded for an indefinite period. However, this rule can be derogated from and an employment agreement for a fixed duration can be concluded only under the express and limiting conditions provided by law.

Thus, there are 8 cases in which the law allows the conclusion of an individual fixed-term employment contract, these being provided by art. 83 of the Labor Code.

  • a) replacing an employee in case of suspension of his employment contract, except for the situation in which that employee participates in the strike;
  • b) temporary increase and/or change in the structure of the employer’s activity;
  • c) carrying out seasonal activities;
  • d) in the situation where it is concluded on the basis of legal provisions issued with the aim of temporarily favoring certain categories of unemployed persons;
  • e) employment of a person who, within 5 years from the date of employment, meets the conditions for retirement due to age limit;
  • f) occupying an eligible position within trade unions, employers or non-governmental organizations, during the term of office;
  • g) hiring pensioners who, under the law, can combine their pension with their salary;
  • h) in other cases expressly provided by special laws or for carrying out works, projects or programs.

As it is a variety of the individual employment contract, it must be in written form and must also expressly include the duration for which it is concluded.

During the execution of the individual employment contract, employees with a fixed-term contract benefit from all the rights provided for in the labor legislation, in the applicable collective labor agreement, in the internal regulations, as well as in the individual employment contract, the employer having the obligation not to make any different treatment compared to employees with an indefinite contract, except in cases where the different treatment is justified by objective reasons.

The individual fixed-term employment contract can be concluded for a maximum period of 36 months.

On the expiry date of the term of the individual employment contract concluded for a fixed period, it ceases by law. However, the parties, by written agreement, can decide to extend it no more than twice (maximum of 3 successive individual employment contracts of a fixed duration between the same parties) for the period of the realization of a project, program, or work, without exceeding the maximum duration of 36 moths.

Also, an exception to the rule according to which the individual fixed-term employment contract ends when the term for which it was concluded expires, is given by the situation of replacing an employee whose employment contract is suspended.

Thus, at the moment of the cessation of the reasons that determined the suspension of the individual employment contract of the employee, the individual employment contract for a fixed period will cease by law.

Last but not least, employees with individual fixed-term employment contracts may be subject to a trial period, the maximum duration of which the legislator correctly established below the limits of the trial period for employees with individual indefinite-term employment contracts, as follows:

  • a) 5 working days for a duration of the individual employment contract of less than 3 months;
  • b) 15 working days for a duration of the individual employment contract between 3 and 6 months;
  • c) 30 working days for a duration of the individual employment contract of more than 6 months;
  • d) 45 working days in the case of employees in management positions, for a duration of the individual employment contract of more than 6 months.

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