A valid employment contract must be concluded in writing and must include:
- the type of work (job title) that the employee will perform for the employer;
- the place or places of work where the employee will perform the work; and
- the date of commencement of employment.
Besides the above statutory essentials, the employer is also required to inform employees in writing about:
- the specification of the type of work (job description);
- notice period;
- weekly working hours and working schedule;
- collective bargaining agreements (if any).
This information is either included directly in the employment contract or provided separately via an internal policy or separate notice.
Besides the above, it is generally up to the parties to negotiate the rest of the contract. It is typical to include provisions relating to the duration of the employment, general obligations of the employee, confidentiality, probationary period and/or regulation of IP rights. Termination provisions are not so typical since the termination process is specifically stipulated by law.
The contract must be drafted in a language which the employee understands, but it is recommended to draft it in a bilingual version.
The employment contract may be concluded for a definite or indefinite period of time. The duration of a fixed term contract may not exceed three years from the date of commencement of the first employment relationship for a fixed term and may be repeated or extended only twice.
An extension of an employment relationship shall also be considered as an agreed recurring employment relationship. After the expiry of a period of three years from the termination of the preceding fixed-term employment relationship between the same contracting parties, the preceding employment relationship shall not be taken into account.
A trial period is not a mandatory requirement and must be always agreed between the parties in writing (usually in the employment contract) prior to the commencement day, otherwise it will be invalid.
The maximum duration of the trial period is 3 months for standard employees and 6 months for managerial employees; however, in case of a fixed term employment contract, the trial period may not exceed half of the agreed term of employment. The agreed trial period may not be subsequently extended.
The employment may be terminated immediately without any notice period during the trial period.
Where notice of termination has been given, the employment relationship will come to an end upon the expiry of the notice period.
The notice period must be the same for both parties and shall be at least two months. The notice period may be extended as well, but only by agreement between the employer and the employee; this agreement must be in writing.
Under the Labour Code, the notice period shall start to run on the first day of the calendar month following delivery of the notice and come to an end upon the expiry of the last day of the relevant calendar month.