Can a fixed-term contract be terminated early?

Do you feel stuck in place? A fixed-term employment contract doesn't have to be shackles tying you to your current position. Many employees wonder whether it's possible to terminate a contract early without risking legal consequences. The good news is that there are ways to do this in line with the Labour Code!

Options for early termination – when it's possible

Although fixed-term contracts by definition have a clearly defined end date, the law provides for situations in which they can be terminated before that date. Here are the main options:

  • Termination by mutual agreement – the friendliest way to end the employment relationship, when both the employee and the employer agree to terminate the contract.
  • Termination without notice – in exceptional situations, e.g. when one party grossly breaches its obligations under the contract.
  • Termination with notice – an option available in specific cases provided for by law.

If you want to end your employment contract early, it's best to start with a conversation with your employer. Termination by mutual agreement allows both parties to set a date for ending the collaboration that suits them. In this case, you don't need to state the reason for termination, and the process runs smoothly without unnecessary formalities. This is especially beneficial if you want to maintain a good relationship with your current employer.

Termination by the employee – your rights and obligations

If an agreement isn't possible, you can consider terminating the employment contract with notice. In the case of fixed-term contracts, the options are somewhat limited, but they still exist:

  • Termination clause – if your contract contains a provision allowing it to be terminated with a set notice period, you can make use of it. 
  • Termination without notice – in special situations, e.g. when the employer breaches its basic obligations towards you.

Remember that the absence of a termination clause in the contract may make it harder to end it early. It's always worth reading the contract carefully before signing it!

Examples of situations where it's worth deciding to leave early

The decision to leave a job before the contract ends isn't easy, but it's sometimes necessary. Here are situations in which it's worth considering this step:

  • New, attractive job offer – better working conditions, higher pay for hours worked, or opportunities for career development.
  • Personal changes – moving house, a change in family situation, or the need for flexibility.
  • Violation of employee rights – when the employer fails to meet its obligations, e.g. falls behind on salary payments.
  • Dissatisfaction with working conditions – a toxic environment, lack of prospects, or conflict with a supervisor.

Your wellbeing and job satisfaction come first. Don't be afraid to make a decision that could have a positive impact on your future.

How to effectively terminate a fixed-term employment contract

Do you dream of a change but don't know how to effectively end your current fixed-term employment contract? You're not alone. Many employees wonder how to terminate such a contract correctly and smoothly. In this chapter, we'll guide you through the process step by step so you can confidently make this important decision to change.

Termination procedure – step by step

1. Check the terms of your contract

Before taking any action, carefully review your employment contract. Make sure it contains a clause allowing it to be terminated with notice. Some fixed-term contracts may not provide for the possibility of early termination with notice. If your contract doesn't provide for this, consider terminating it by mutual agreement instead.

2. Prepare a termination statement

Once you've made up your mind, it's time to prepare a formal termination statement. This is an important document that must meet specific requirements under the Labour Code. A carefully prepared statement will speed up the process and prevent potential complications.

3. Submit your notice to the employer

Next, hand your notice to your employer. Remember to observe the correct form and timing so that the termination of the employment contract is valid. A professional approach will help you maintain good relations and may result in positive references in the future.

4. Stay professional

Even if you're leaving, it's important to maintain good relations. Work during the notice period should be performed with due diligence. Your professionalism will be appreciated and may influence positive opinions about you within the industry.

Writing the notice – what your statement should include

Your employment contract termination statement should be clear and to the point. Here are the elements it must include:

  • Your personal details: first name, surname, position.
  • Employer's details: company name, registered address
  • Date and place the document was drawn up
  • Heading: e.g. "Notice of Termination of Employment Contract."
  • Content of the notice: information about the termination, the date the contract was concluded, the type of contract
  • Signature: your handwritten signature.

You don't need to state the reason for terminating the contract unless the specific nature of your contract requires it. Remember that written form is required under the Labour Code, and failing to observe formalities may render the notice invalid.

Form and timing of submitting notice – what to pay attention to

Written form

Notice of termination of an employment contract must be submitted in writing. Make sure the document is legible and contains all the necessary information. This will protect you from potential misunderstandings and ensure the notice is valid.

Method of delivery

It's best to hand in the notice in person, asking for confirmation of receipt on a copy of the document. If that's not possible, you can send it by registered letter with acknowledgement of receipt. This way, you'll be certain that your employer has received your notice of termination.

Timing of submission

Pay attention to when you submit your notice. The notice period begins from the moment the notice is delivered to the employer. The timing of submission can affect the date the contract ends, so plan ahead to avoid unnecessary complications and stress.

 

How many days' notice apply to a fixed-term contract?

Many employees face the question of how many days' notice they're entitled to under a fixed-term contract, whether they're planning changes in their professional life or receiving notice of termination from their employer. Understanding how to calculate the notice period is key to protecting your rights and planning your future appropriately.

What determines the length of the notice period?

The length of the notice period for a fixed-term employment contract depends on the total length of employment with a given employer, regardless of the type of contract (fixed-term or open-ended). Here's how the individual notice periods break down:

  • 2-week notice period – if you've been employed for less than 6 months.
  • 1-month notice period – if your length of service is at least 6 months but less than 3 years.
  • 3-month notice period – if you've worked for this employer for at least 3 years.

How to calculate length of service?

Your length of service covers the entire period your employment contract has been in force with a given employer. This means that if you previously worked under a probationary employment contract or another form of employment with the same employer, those periods add up. Whether your employment is fixed-term or open-ended affects how long your notice period will be.

Examples of notice period length

  • Example 1: You've worked for 4 months under a fixed-term employment contract. In this case, the notice period is 2 weeks.
  • Example 2: Your length of service is 7 months. In that case, you're entitled to a 1-month notice period.
  • Example 3: You've been employed for over 3 years. The notice period is 3 months.

What about termination by the employer?

If it's the employer who decides to terminate the employment contract, they must observe the appropriate notice period. In the case of terminating a fixed-term contract, the employer isn't required to state the reason for termination, unless the contract was concluded for an indefinite period.

The employee's obligations during the notice period

During the notice period, you're required to continue working on the previous terms. However, during the notice period, the employer may release the employee from the obligation to work while retaining the right to remuneration. Additionally, if the termination was initiated by the employer, you're entitled to time off to look for a new job:

  • 2 working days for a 2-week or 1-month notice period.
  • 3 working days for a 3-month notice period.

Can the notice period be shortened?

After giving notice, the parties may agree on an earlier date for terminating the contract. This is possible by agreement between the employee and the employer. In such a case, it doesn't affect the nature of the termination, only the length of time the employment contract remains in force.

Can the notice period be shortened?

After giving notice, the parties may agree on an earlier date for terminating the contract. This is possible by agreement between the employee and the employer. In such a case, it doesn't affect the nature of the termination, only the length of time the employment contract remains in force.

 

Terminating a fixed-term employment contract without notice

Life can be full of surprises. Sometimes we face situations that require immediate action, including terminating an employment contract without notice. Do you know when this is possible and what consequences it involves? This chapter will help you understand how to act in such a situation to protect your rights as an employee.

When can an employee terminate a contract without notice?

Under the Labour Code, you have the right to terminate an employment contract immediately in exceptional cases:

  • Serious breach of obligations by the employer: If the employer fails to meet its basic obligations towards you, e.g. doesn't pay your salary, you may decide to terminate the contract without notice.
  • Medical certificate: When a doctor determines that the work you perform is having a negative effect on your health, and the employer doesn't transfer you to another position in line with the recommendations.

In such situations, your termination statement must be accompanied by the stated reason justifying the termination.

When can the employer terminate a contract without notice?

The employer also has the right to terminate an employment contract immediately without notice in certain situations:

  • Serious breach of employee duties: If you commit a serious breach, such as theft or acting to the detriment of the company.
  • Committing a crime: When it's established that you've committed a crime that prevents you from continuing employment in a given position.
  • Loss of qualifications: If, through your own fault, you lose the qualifications necessary to perform the job.

In such a case, the employer's termination statement must include the reason justifying the termination.

Procedure for terminating a contract without notice

  • Written form: Regardless of who initiates the process, the termination statement must be made in writing.
  • Stating the reason: It's necessary to state the reason for the termination, which should be specific and genuine.
  • Timing: Termination of the contract takes effect on the day the statement is delivered to the other party.
  • Lack of consent from the other party: If, for example, the employee refuses to accept the notice, it's still effective as long as it was delivered correctly.

 

Summary

Terminating a fixed-term employment contract doesn't have to be complicated or stressful. There are various ways of terminating an employment contract that allow you to end the collaboration in accordance with the law. Any fixed-term employment contract can be terminated if you follow the applicable rules and procedures.

Although the fixed term is set by the employer and employee when the contract is concluded, there are situations in which it can be ended before that date. Termination by mutual agreement is the friendliest way to end the employment relationship, when both parties agree to terminate the contract. In this case, there's no need to state a reason, and the process runs smoothly without unnecessary formalities.

If an agreement isn't possible, you can terminate a fixed-term employment contract with notice, observing the appropriate notice period. Any employment contract can be terminated with notice if the contract provides for this. However, it's worth remembering that in some cases the notice should state the reason justifying the termination.

When terminating an employment contract, it's important to follow a few key steps. The notice must be submitted in writing, regardless of which party initiates the process. The document should include information such as the details of both parties, the date the contract was concluded, and, where applicable, the reason justifying the termination. A fixed-term contract terminated with notice can be legally ended before its end date. The length of this period often depends on the employee's length of service and the terms of the contract.

During the notice period, the employee retains the right to full pay for hours worked and other benefits arising from the contract. If the employer terminates the employment contract, you may be entitled to days off to look for a new job. It's worth remembering that the method of terminating the employment contract should comply with the law in order to avoid potential legal problems.

If the parties haven't concluded a contract allowing for early termination, ending the contract before its end date may be difficult. In such a situation, the best solution is once again termination by mutual agreement, which allows convenient terms for ending the collaboration to be agreed. Remember that knowing your rights and obligations is the key to confidently navigating the world of work. Whether you're an employee or an employer, complying with labour law and properly carrying out the termination of an employment contract will help you avoid unnecessary complications and ensure a professional end to the working relationship.

 

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