When terminating a fixed-term employment contract, the employer will need to state the reason for the termination.

This new obligation stems from a draft amendment to the Labour Code.

This is a revolutionary change, as it nearly equates a fixed-term employment contract with an indefinite-term contract as regards termination. It imposes additional responsibilities on HR departments and managers.

The stated reason for the termination, as with an indefinite-term contract, will have to be true, actual and justified. This will be subject to judicial review.

Moreover, when the fixed-term employee is subject to trade union protection, the employer will be required to consult with the trade union about the intention to terminate the contract. Currently, there is no such obligation.

The amendment will apply to all fixed-term contracts that are in force when the new regulations take effect.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.