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Home Work life guide page Termination of employment Termination of a fixed-term employment contract

Termination of a fixed-term employment contract

A fixed-term employment contract ends without notice at the end of the fixed term or when the agreed work is completed. If the date of termination of the employment contract is known only to the employer, the employer must inform the employee of the termination of the employment contract as soon as they become aware of the termination date. A fixed-term employment contract that is agreed for a term longer than five years can be terminated after five years in the same way as an indefinitely valid employment contract.

As a rule, a fixed-term employment contract cannot be terminated. An exception to this rule are mixed types of contracts, or combination contracts, in which the termination of the employment contract by termination has been separately agreed.

If an employee or employer terminates a fixed-term employment contract before the end of the term without agreeing on it with the other party, the party terminating the employment relationship is obliged to compensate the other party for the damage caused. In the case of an employee, damage usually refers to a loss of income suffered by the employee. If an employee terminates a fixed-term employment relationship before the end of the agreed term, the damage compensated to the employer usually means costs for hiring a new employee. In this case, the employer must prove the amount of expenses incurred by the company.

The employer may allow the employee to continue working after the end of the agreed term of the fixed-term contract without expressly agreeing on the duration of the continuation. The employment contract will then continue as an indefinitely valid employment contract.