What is a fixed-term employment contract?
A fixed-term employment contract is an employment agreement concluded for a specified period. In Polish law, it is one of the basic types of employment contracts regulated by the Polish Labour Code. Its key feature is that the parties agree in advance when the employment relationship will end, for example on a specific date, after a defined period, or in connection with an objectively identifiable event.
A fixed-term employment contract is not a civil law contract. It creates an employment relationship, which means that the employee performs work under the employer’s direction, at a place and time designated by the employer, and receives remuneration in return. As a result, the employee is covered by statutory employment protections, including rules on working time, paid leave, social insurance, minimum employment standards and protection against unlawful termination.
Under Article 251 of the Polish Labour Code, the total period of employment under fixed-term contracts between the same employer and employee may not generally exceed 33 months, and the total number of such contracts may not exceed three. If these limits are exceeded, the employment contract is treated as concluded for an indefinite period, as provided in Article 251 of the Polish Labour Code. The law also provides exceptions, for example where a fixed-term contract is used to replace an absent employee, for seasonal or casual work, for work during a term of office, or where objective reasons on the employer’s side justify such an arrangement.
What does a fixed-term employment contract cover?
A fixed-term employment contract should clearly define the essential terms of employment. These typically include the parties to the contract, type of contract, job position, place of work, remuneration, working time, start date and end date or duration of the contract. The contract should also comply with mandatory rules on employee information obligations, including information on working conditions and employment rights.
In practice, fixed-term contracts are used in many business contexts. They may be appropriate for project-based work, temporary increases in workload, replacement of absent employees, seasonal operations, grant-funded positions, management appointments linked to a term of office, or other objectively time-limited needs. They are also common where the employer wants to employ a person for a defined business period, provided that the statutory limits and anti-abuse rules are respected.
The termination of a fixed-term employment contract requires particular attention. Under Article 36 § 1 of the Polish Labour Code, the notice period depends on the employee’s length of service with the employer and is: 2 weeks if the employee has been employed for less than 6 months, 1 month if the employee has been employed for at least 6 months, and 3 months if the employee has been employed for at least 3 years. Since amendments that entered into force in April 2023, an employer terminating a fixed-term contract by notice must also provide a reason for termination, as required under the Polish Labour Code. In certain cases, consultation with a trade union may also be necessary.
Fixed-term employment must also be assessed in light of EU law. Council Directive 1999/70/EC concerning the framework agreement on fixed-term work requires Member States to prevent abuse arising from the use of successive fixed-term employment contracts. Polish rules on the 33-month and three-contract limits reflect this objective.
When is legal support useful in relation to a fixed-term employment contract?
Legal advice may be needed before concluding, renewing, terminating or disputing a fixed-term employment contract. For employers, the main risks include using successive fixed-term contracts beyond statutory limits, incorrectly relying on an exception, failing to state a valid termination reason, omitting required employee information, or treating a fixed-term arrangement as a way to avoid ordinary employment obligations.
For employees, legal support may be important where the fixed-term contract has been repeatedly renewed, where the employer ends the contract without proper justification, where the contract does not reflect the actual working conditions, or where the employee suspects that the contract should be treated as an indefinite-term employment contract. A review may also be necessary in disputes concerning notice periods, reinstatement, compensation, discrimination, pregnancy or parental protection, or unequal treatment compared with employees engaged for an indefinite period.
A timely consultation with a lawyer can help identify whether the contract is validly structured, whether the statutory limits have been exceeded, and whether the planned termination is legally defensible. Early advice may reduce the risk of employment disputes, claims for compensation, claims challenging termination, regulatory exposure and financial losses connected with payroll, social security or litigation.
Legal support in fixed-term employment matters
Support from a law firm in relation to fixed-term employment contracts may include in particular:
- drafting and reviewing fixed-term employment contracts;
- assessing whether statutory limits under Article 251 of the Polish Labour Code have been observed;
- verifying whether an exception to the 33-month or three-contract rule can be applied;
- preparing notices of termination and assessing termination reasons;
- advising on employee information obligations and internal HR documentation;
- supporting employers in trade union consultations and employment risk assessments;
- representing employers or employees in disputes before labour courts;
- advising on conversion of fixed-term contracts into indefinite-term contracts;
- assessing compliance with Polish Labour Code rules and relevant EU employment standards.
Need assistance with a fixed-term employment contract? Contact us.
See also
- Employment Contract
- Dismissal
- Commercial Law
- Civil Litigation