Extension of a fixed-term employment contract for a new term

Last modified: January 2021

A fixed-term employment contract is a common way to legally register a citizen in a temporary workplace. A distinctive feature of such labor relations is the limitation of the period during which the employee is obliged to fulfill his duties specified in the document. Thus, the maximum validity period of a fixed-term TD cannot exceed 5 years , after which the fixed-term contract must either be terminated or extended for a new term.

Components of a letter

The letter is ideally printed on the organization's letterhead. This way, your contact details and name will be guaranteed to be at the top of the page. If you don’t have special forms at hand, then standard A4 format, office paper, will do. It should contain the following information:

  • Date the letter was written. If this is accepted in the organization, then the number.
  • The addressee to whom the letter is intended. In the upper right part it is customary to write your full name and also indicate your position. Naturally, if the letter is sent to an organization.
  • Who is sending the message? If it is sent on behalf of the organization, then this is its leader. It is necessary to indicate not only the full name, but also the position and full name of its leader.
  • A reference to the agreement that was concluded between its parties.
  • If possible, reference to the clauses of the contract, according to which the extension of the agreement occurs in this way.
  • From what date to what date will the terms of the existing agreement be extended?

The letter is certified by the “autograph” of the manager or a person who has the appropriate rights to sign business documentation.

Letter of contract extension

Components of a letter.

The letter is ideally printed on the organization's letterhead. This way, your contact details and name will be guaranteed to be at the top of the page. If you don’t have special forms at hand, then standard A4 format, office paper, will do. It should contain the following information:

  • Date the letter was written. If this is accepted in the organization, then the number.
  • The addressee to whom the letter is intended. In the upper right part it is customary to write your full name and also indicate your position. Naturally, if the letter is sent to an organization.
  • Who is sending the message? If it is sent on behalf of the organization, then this is its leader. It is necessary to indicate not only the full name, but also the position and full name of its leader.
  • A reference to the agreement that was concluded between its parties.
  • If possible, reference to the clauses of the contract, according to which the extension of the agreement occurs in this way.
  • From what date to what date will the terms of the existing agreement be extended?

The letter is certified by the “autograph” of the manager or a person who has the appropriate rights to sign business documentation.

Legal subtleties

When concluding contracts, special attention must be paid to deadlines. If we are talking about prolongation, then it is necessary to clarify how many times you can resort to extending the period and under what conditions.

During legal proceedings, there are often cases in which counterparties have different points of view on exactly when a particular agreement expired.

A letter about extending the agreement in this case will be a guarantee from the second party that the first was aware of the extension of the agreement.

An important nuance: the letter must receive a response with confirmation or refusal to extend the agreement. All parties must express their consent, only in this way the conditions will remain the same.

If the terms of the contract need to be adjusted, then it will be more convenient to draw up an additional agreement. This method is most common in our country.

Agreement on extension of the contract: sample

A letter to extend the term of the contract is drawn up in the case where such a condition for its extension was specified in the original contract. In this case, there is no need to sign additional agreements or rewrite the terms of the initially reached agreements.

FILESDownload a blank form for a letter to extend the term of a contract .docletters to extend the term of a contract .doc This document is not required to be drawn up if the contract implies an indefinite (unlimited) period.

In all other cases, when one agreement between counterparties expires, some method of extension must be applied. Otherwise, the contract will be considered terminated.

Wording Usually in contracts there is a clause that makes it clear for how long it is concluded, and most importantly, what will serve as a condition for its extension.

Extension of the contract: registration, wording in the contract (samples)

Before formulating a renewal clause, you should find out what legal methods exist for implementing this process.

Additional agreement

The first and most convenient is an additional agreement. Its terms remain unchanged, but the clause regarding the validity period changes. That is, if the agreement was concluded in 2021, then at the end of its expiration an additional agreement should be signed extending its validity for another year.

Document structure:

  • name “additional agreement”, indicate the number of the agreement to which it is drawn up. The validity period and the date of its preparation are indicated;
  • main part: it specifies the parties who take part in the conclusion of the addendum. agreements, persons responsible for this process;
  • further, the validity period of the new contract, that is, the period of its extension, is given;
  • possibly a description of the start date;
  • it is important to indicate that the remaining clauses of the transaction remain in force;
  • details of the parties.

An additional agreement is drawn up in two identical copies.

Notice of contract extension

In most cases, if there is a constructive business relationship between the parties and the terms are clearly stated, misunderstandings are eliminated. Retention period Typically, business correspondence has a short retention period, but this does not apply to a letter about extending the term of a contract.

It must be preserved exactly as long as the contract itself is stored. Attention: The agreement may be permanent or temporary. Can be stored for 5, 10, 75 years. This will depend on its specifics. And the letter should be attached to it and kept for as long as he does.

This point must be taken into account by the employee who is responsible for storing documentation in the organization.

What letter should I write to extend deadlines?

In order not to enter into a new agreement, the parties can use a tool such as a notice of contract extension. True, it is mainly applied only in cases where the text of the contract contains a reference to the possibility of its extension. Or the Civil Code of the Russian Federation and other laws establish the preemptive right of the party to the contract to extend (conclude).

For example, Art. 621 of the Civil Code of the Russian Federation is applied in lease relations (on termination of lease).

In general, if there is no need to change the terms of the contract, or you do not want to act through termination of the agreement or its termination, a notice of extension is sufficient if there is an agreement between the parties.

At the same time, each situation has its own nuances. Therefore, if you have doubts about the correctness of the algorithm of actions, you can contact the duty lawyer of our site.

Contract extension: sample wording

Often the relationship with the counterparty has not yet been completed, and the contract has already expired. Instead of reassembling the package of documents and concluding a new contract, you can extend the current one. What is a contract extension, what is the wording, a sample in different situations - you will find all this in our article.

A contract extension is an extension of its validity period. It is most convenient to include the terms of the extension in the text of the contract itself. In this case, different formulations may be used, for example, making the extension automatic.

Automatic extension: sample wording in the contract

One of the most convenient methods of renewal is automatic. The parties will not have to draw up additional agreements or when the contract expires. Typically, an automatic extension clause is included in the contract in the following cases:

  • The parties to the transaction are aimed at long-term cooperation,
  • There is an assumption that during the term of the contract the parties will not have time to fulfill all obligations,
  • The parties would like to conclude an agreement for a longer period, but there are legislative obstacles.

When the contract expires, one of the parties may choose to terminate it. If none of the parties to the transaction sent a letter of termination, then the contract is extended for the specified period.

In the contract, the clause on automatic extension may look, for example, like this:

“This agreement is concluded for a period until December 31, 2021. The contract is extended for one year unless either party declares in writing its intention to terminate it thirty calendar days before the expiration of the established period.”

Extension of a loan agreement: sample

An extension of the loan agreement may be necessary if the borrower cannot repay the loan on time. The additional agreement approves a new payment schedule. And indicate the renewal period for the current loan agreement.

The possibility of extending the loan term may be contained in the agreement itself. This can be done in two ways:

  • First, indicate penalties in case of late payment. Indirectly, this paragraph indicates the possibility of extending the loan term. If the borrower is willing to pay increased interest, he can use the borrowed funds longer,
  • Secondly, the extension condition can be formulated in plain text. In this case, an additional commission is usually provided. The wording could, for example, be as follows: “In case of extension of the term of this Agreement, the Borrower undertakes to pay a commission in the amount of 1.5% of the total debt amount.”

Letter of notification of contract extension

In this case, the offeror must be guided by the provisions of Article 440 of the Civil Code of the Russian Federation and, after receiving the acceptance, immediately send to the acceptor confirmation of acceptance of the late acceptance. In this case, the contract will also be considered extended. As a specific example, let’s take a letter to renew a lease agreement as a fairly common case in practice.

IMPORTANT! Before sending an offer with a proposal to extend the lease transaction, it is necessary to pay attention to the provisions of paragraph 2 of Article 621 of the Civil Code of the Russian Federation, which provides for the tenant’s pre-emptive right to extend the lease.

If you wish to exercise this right, you do not need to send a letter; the tenant only needs to continue to use the property.

If there are no objections from the lessor, in this case the contract will be considered automatically extended for an indefinite period.

If the parties need to extend the deal for a specific period or adjust other provisions of the contract, an offer will have to be sent.

Sample wording of a renewal agreement for beginners

For example, you need an extension of a transaction certified by a notary; to renew it, you will have to contact a lawyer again.

One of the main ones is, which says that the parties undertake to fulfill the terms of the contract until all obligations are fulfilled.

If the extension concerns labor relations, then the norms and rules of this process are described in the Labor Code. Another regulatory act regulates the specifics of relationships between legal entities in the field of procurement of goods, services, and works.

Prolongation (extension) of a lease agreement: stages and important conditions

ConsultantPlus When a consensus is reached, the parties independently determine the method of formalizing the new lease relationship, if the provisions of the new document do not diverge from legislative norms. In fact, the parties can do the following:

    Conclude a new contract. Draw up an additional agreement to a previously signed document, into which, if desired, new conditions can be legally introduced and basic parameters changed. A sample additional agreement can be downloaded below and filled out yourself, based on the agreement in force between the parties.

Download

(35.0 KiB, 3,852 hits) (27.5 KiB, 5,943 hits) The renewal procedure is significantly simplified if the primary document contains a prolongation clause - a definition that allows, after the termination of the contract, in the absence of mutual disagreement, to renew it for a new one period of the same duration.

If there is no such clause in the contract, the new validity period is regarded as indefinite.

The law is clear that the tenancy must be registered if the property is transferred for 12 months or more. For an agreement concluded for less than 1 year, entry into the Rosreestr database of a rental relationship record is not required. This norm is established by Art. 651 (clause 2) of civil legislation.

In the absence of registration, the contract is considered void, and the lease relationship has no legal force.

After the lease under the agreement ends, the property is returned to the owner’s disposal in accordance with the procedure defined in clause 1 of Art. 655.

Due to this requirement, many landlords prefer to enter into an agreement for a period of 11 months without registration, with the possibility of further extension.

If the parties wish, they have the right to terminate the contract, but they must first notify in writing of the upcoming early termination.

Source: https://mir-katushek.ru/konfiskaciya/6491-pismo-o-prodlenii-sroka-deystviya-dogovora.html

Legal subtleties

When concluding contracts, special attention must be paid to deadlines. If we are talking about prolongation, then it is necessary to clarify how many times you can resort to extending the period and under what conditions. During legal proceedings, there are often cases in which counterparties have different points of view on exactly when a particular agreement expired. A letter about extending the agreement in this case will be a guarantee from the second party that the first was aware of the extension of the agreement.

An important nuance: the letter must receive a response with confirmation or refusal to extend the agreement. All parties must express their consent, only in this way the conditions will remain the same.

If the terms of the contract need to be adjusted, then it will be more convenient to draw up an additional agreement. This method is most common in our country.

When is it permissible to extend a contract by notice?

The basis for extending the contract by sending a notice is not so much the provisions of the law as the text of the contract. It usually contains language about automatic prolongation if neither party declares an unwillingness to continue fulfilling its obligations. But, as in our example, the right to give written notice may be expressly secured.

Most often, such a document is sent in rental relations. After all, when its subject is real estate, the parties are required to register it with Rosreestr. And these are additional financial and time costs. Therefore, most often such contracts are concluded for 11 months, and then notification is used.

At the same time, extending the contract by sending a notice means its extension on the same terms that were agreed upon by the parties at the time of conclusion of the agreement. Therefore, if you intend to change the essential terms of the obligation, it is more advisable to conclude another agreement.

Conditions

In order for the mutual consent of the counterparties to be a sufficient condition for the continuation of existing agreements, the main agreement must stipulate:

  • Validity.
  • What methods of extending the agreement exist?
  • How many times can the contract be renewed (one, two, unlimited).
  • How one of the parties (or both) can terminate the contract.

It is also worth considering that it is impossible to extend something that has already ended. The contract must be renewed before it is terminated.

Otherwise, there is a possibility of errors and the possibility of fraud by one of the parties.

In most cases, if there is a constructive business relationship between the parties and the terms are clearly stated, misunderstandings are eliminated.

Required documents

Speaking about related documentation, we can highlight two documents required to be filled out:

  1. The application must be made by the employee in writing and submitted to the head of the company before signing the additional agreement. The application is printed on a computer and is the basis for the formation of an agreement. In the document, the worker indicates the reason for the extension, as well as his personal data, date and signature. The head of the enterprise, after familiarizing himself with the document and if he wishes to cooperate, must endorse the paper, making the appropriate mark.
  2. If management approves, the next step is to issue an order. The order has legal force within the organization. Details that must be present in the document:
      name of the enterprise;
  3. name and number of the document;
  4. personal data of the worker;
  5. date of drawing up the order;
  6. base;
  7. signature and transcript of the responsible executor;
  8. the fact of extending a fixed-term contract for a specific time or replacing the contract with an open-ended one.

The order is endorsed by an authorized person and placed on the information stand. All workers listed in it must familiarize themselves with the document.

Shelf life

Typically, business correspondence has a short shelf life, but this does not apply to a contract renewal letter. It must be preserved exactly as long as the contract itself is stored.

The agreement may be permanent or temporary. Can be stored for 5, 10, 75 years. This will depend on its specifics. And the letter should be attached to it and kept for as long as he does.

This point must be taken into account by the employee who is responsible for storing documentation in the organization. If a paper form of storage is implied, then it is better to seal these two documents, especially if an additional agreement on extending the validity period has not been drawn up.

In what cases can a fixed-term employment contract be extended?

Current legislation does not provide for the extension of a fixed-term employment contract for a new term in cases where the document contains a specific date for termination of the employment relationship. The fact is that an employee who is not notified of dismissal 3 days before the expiration of the TD has the right to continue his work activity on an indefinite basis.

If a temporary TD was concluded to replace an employee registered on a permanent basis, and the absentee was unable to return to work within the agreed period, the fixed-term contract can be extended. In this case, the performer undertakes to work until the time when the person being replaced can begin his work duties.

If the basis for extending an urgent TD is the assignment of a new task, there will be no need to change the conditions. It is enough to conclude an additional agreement containing a list of new tasks for the employee.

Need to know! An additional agreement to a fixed-term employment contract must be drawn up and signed before the expiration of the main document. An agreement accepted by the parties after the expiration of the TD term has no legal force.

For some categories of citizens, the above rules apply with some amendments.

Pregnant

A fixed-term employment contract concluded with a pregnant woman cannot be terminated before the onset of childbirth. After notifying the employer of the onset of pregnancy, the latter is obliged to extend the validity period of the TD until the end of maternity leave (the end date is considered to be the date of return to work indicated on the certificate of incapacity for work).

When concluding a temporary contract to replace an absent employee, the latter’s actual return to work implies the dismissal of the pregnant woman or her transfer to another position (if possible). The employer has the right to terminate the employment contract in the event of termination of pregnancy. Current legislation allows for this to take place within a week from the date of notification of the incident.

Pensioners

The procedure for extending a fixed-term employment contract with a pensioner has no special features: after the expiration of the document, an additional agreement can be signed with the citizen, containing new conditions for the performance of labor duties.

Persons holding the position of General Director

The term of work in such a position is prescribed in the statutory documents of the enterprise, but cannot exceed the legally established limit of 5 years. The hiring of a general director is carried out by decision of the company's election body or the board of shareholders. Upon expiration of the temporary TD period, the person holding this position must be dismissed, but can be hired again for a new term.

Foreigners

Concluding an urgent transaction agreement with a foreigner differs only in the requirement for a permit to carry out work activities on the territory of the Russian Federation. If the validity period of this document expires, it is necessary to terminate the contract without fail. Otherwise, the lack of a work permit may result in penalties not only for a non-resident of the Russian Federation, but also for the employer.

The presence of a patent by a foreign citizen gives the latter the right to carry out labor activities exclusively for individuals. The admission of such citizens by legal entities is prohibited. The same applies to individual entrepreneurs - hiring a foreigner who only has a work permit is not allowed!

Procedure for registration of extension

The algorithm for increasing the period involves performing the following steps:

  • the emergence of grounds for prolongation;
  • recording the mutual consent of the participants to change the duration of work (receiving the employee’s application);
  • Preparation;
  • signing by participants;
  • preparation of an order to extend the employment contract (according to the universal model).

The continuation of the employment relationship must be recorded by signing a new document - an additional agreement to the current contract.

Additional agreement

The legislation establishes the following requirements for additional agreements:

  • prepared in writing;
  • attached to the main document;
  • the terms for which the activity is extended, as well as the reasons for such a decision are indicated;
  • display of basic details (signatures of participants and company seal).

After signing, the document is transferred to the personnel department for storage, as well as to the accounting department to continue payroll.

Sample

Example of an additional agreement to change the duration of the contract:

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