Employment contract fixed term vs indefinite term
EMPLOYMENT CONTRACT FIXED TERM VS INDEFINITE TERM
EMPLOYMENT CONTRACT: FIXED TERM VS. INDEFINITE TERM
An indefinite term employment contract is one whose duration has not been defined, nor does it arise from the type or purpose of the contract.
On the contrary, a fixed-term contract is a contract whose duration is clearly defined, ie we know its time point so that when it arrives, the contract automatically expires.
The main difference between an indefinite and fixed-term employment contract is that the former is terminated by termination either on the part of the employer (dismissal) or on the part of the employee (resignation / voluntary departure) and if the legal compensation is paid (after the completion of twelve (12) months of employment) while the latter is terminated automatically upon the expiration of the time for which it was concluded, without the need for termination and without the provision of payment of any compensation.
Termination of an indefinite term employment contract
An indefinite employment contract is terminated at any time by termination either on the part of the employer (dismissal) or on the part of the employee (resignation / voluntary departure).
The valid exercise of the right to terminate the employment contract for an indefinite period of time requires:
- compliance with a document type
- the payment of legal compensation
- the registration of the employee in the observed payroll of the insurance company or the insurance of the dismissed.
It is clarified that employment with an indefinite employment contract is considered as probationary employment for the first twelve (12) months from the day of its validity and which can be terminated without notice and without severance pay, unless the parties otherwise agree (Article 17 of Law 3899/2010).
Indicative advantages:
No reason is required for its termination - justification, but it is the right of the employer, as long as it is not exercised abusively (eg due to claiming fulfillment of employer obligations, etc.).
Indicative, disadvantages:
- The employee reserves the right to resign at any time without reason.
- There are cases where the termination of an employment contract of indefinite duration is explicitly prohibited by law. E.g. In case of pregnancy, where it is stipulated that the termination of the contract or employment relationship of an employee by her employer is prohibited as absolutely invalid, both during her pregnancy and for the period of eighteen (18) months after the birth or in her absence for a longer period, due to illness due to pregnancy or childbirth, unless there is a good reason for termination.
Termination of a fixed-term employment contract
Fixed term contracts can be terminated in the following ways:
- The fixed-term employment contract is terminated automatically upon the expiration of the time for which it was concluded, without the need for termination and without the provision of any compensation.
ii.The fixed-term employment contract can be terminated even before the completion of the fixed-term contract by termination, if there is a serious cause (extraordinary termination). According to article 672 of the Civil Code, both the employer and the employee have the right in any case to terminate the fixed-term employment contract at any time for a serious cause, without observing a deadline, while this right cannot be excluded by agreement otherwise.
iii. By mutual agreement of the parties
The termination of the fixed-term contract, before the completion of the agreed time-limit, may occur by drawing up an agreement to the contrary of the parties (AP 57/2015, AP 1665/2002). The termination of a fixed-term employment contract has been considered valid after the acceptance by the employee of an employer proposal for early termination of his contract (AP 1085/2010, AP 1665/2002).