Employment Contracts in General

A contract of employment may be concluded orally, in writing or electronically. It is essential to note that an oral contract binds the parties in the same way as a written contract. It is, however, recommendable to conclude an employment contract in writing as otherwise it might be difficult to remember later what was agreed.

In the absence of a written contract, the employer must provide the employee with written information on principal terms of work [Written Information on the Principal Terms of Work]. This information must always be given to the employee even if not requested.

Several matters may be agreed on in an employment contract within the limits of labour legislation and collective agreements. The most essential are the parties to the employment relationship, the date when employment begins, duration of the contract and salary. For more specific information on what should be included in an employment contract, please see [Terms of Employment Contracts in General].

An employment contract may be concluded for a fixed term or to be valid indefinitely, until further notice. An employment contract may also be a combination of these. For example, it can be agreed that a fixed-term employment agreement can be terminated like an indefinitely valid contract by the parties. Such a contract is called a hybrid employment contract.

Unless otherwise agreed, an employment contract is considered valid indefinitely and may only be terminated or cancelled on grounds provided in legislation for termination or cancellation thereof. A fixed-term employment contract cannot be entered into unless there is a justified reason for concluding such in accordance with the law. A fixed-term employment contract terminates without giving a notice at the end of the fixed period or on completion of the agreed work.