Even relationships with a limited duration can change during the course of work. After all, the initial amount of work for which the employee was hired may increase. Or the employee, whom the worker was hired to replace, may quit.
Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to find out how to solve your particular problem , contact a consultant:
+7 (Moscow)
+7 (Saint Petersburg)
8 (Regions)
APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.
It's fast and FREE !
In this regard, the question arises about the continuation of a fixed-term agreement, as well as the transformation of cooperation into an indefinite one.
What is a fixed-term employment contract?
A fixed-term employment contract is a contract with an employer concluded for a certain period. According to Article 57 of the Labor Code of the Russian Federation, the maximum period is 5 years, the minimum is up to two months (seasonal activity).
The period of the agreement depends on the nature of the activity. It ceases to operate due to absolute, relative or conditional circumstances.
Example. The LLC company is hiring citizen E.L. Naumova. The future employee has age pensioner Guided by Part 2 of Art. 59 of the Labor Code of the Russian Federation, the company, with his voluntary expression of will, drew up a temporary employment contract.
Indefinite employment contract: advantages
An employment contract is the main document that regulates the relationship between an employee and an employer. It includes standard provisions, but may contain expanded information that is not regulated by the provisions of the Labor Code of the Russian Federation. This is not a violation of the law, since the Labor Code of the Russian Federation leaves many issues at the discretion of the parties.
There are several advantages to an open-ended employment contract for both parties. It is worth considering them in more detail.
Table 1. Advantages of an indefinite employment contract
For the applicant | For the employer |
· stability allows you to plan expenses and income; | · the employee is interested in working efficiently, since his salary depends on this; |
· complex procedure for dismissal at the initiative of the employer; | · the employee gains experience and constantly improves; |
· availability of bonuses; | · it is possible to change the terms of the contract, increasing the responsibilities of employees. |
· social package provided by law. |
Work book and contract
Important! The employer has the right to establish a probationary period for employees, the duration of which will be up to 3 months. If management personnel are hired, the duration of the tests can be 6 months. If there are objective grounds, an additional agreement can be concluded to extend the probationary period. After its successful completion, the employee continues to work. At the same time, the Labor Code of the Russian Federation allows you to change the terms of cooperation before and after its end.
Today, most employers enter into open-ended contracts with a probationary period. Its presence allows you to dismiss an employee in a simplified manner if he is not suitable for the company. However, the lack of information about the probationary period means that the hiring occurs without it. It is prohibited to use a probationary period in the following cases:
- When hiring a pregnant woman or minors.
- In relation to persons who passed the competition.
- For those who are getting a job for the first time (it is necessary to provide a diploma of education along with the standard package of documents).
- When obtaining a position due to victory in direct or indirect elections.
- When transferring to a position from another employer.
- Other cases provided for by regional or federal legislation.
Thus, it is necessary to carefully study the provisions of the contract so that problems do not arise during the performance of professional duties.
You can .
Conclusion and termination of an open-ended employment contract - step-by-step instructions
It is worth considering the procedure for concluding and terminating an employment contract at the initiative of an employee. Although, it is also possible to terminate the relationship at the initiative of the employer. Information about this will also be indicated.
Step 1
Job advertisement. At this stage, resumes from candidates are collected. It is possible to conduct an interview in several ways, and it is also possible to give them a test task to test their professional skills. This will let you know who is best suited for the position.
Job advertisement
Step 2
Conclusion of an employment contract. It is necessary to provide in the document all the mandatory provisions that must be in it, otherwise the document will be considered invalid.
Conclusion of an employment contract
Step 3
The employee submits a resignation letter 2 weeks before the planned date of termination of the agreement. If the employee is still on probation, the application must be submitted 3 days in advance. It must contain a date and a request to fire a certain date. You must write to the head of the organization or the head of the department.
An employee submitting a resignation letter 2 weeks before the planned date of termination of the agreement
Step 4
Signing the application and terminating the contract. On the last working day, the employee receives a work book and a paycheck.
Signing the application and terminating the contract
It is worth noting that you can resign without working off by agreement with your employer. It is also possible to terminate the contract by agreement of the parties. For example, when an employer carries out a reorganization or downsizing, he offers employees to resign by agreement, so as not to comply with a lengthy bureaucratic procedure.
Let us remind you that during layoffs it is necessary to pay benefits for 2 months, as well as register workers with the employment department. At the same time, there are a number of additional costs associated with the reduction. Thus, employees receive the same money for 2 months, but are dismissed by agreement of the parties, which is considered the most acceptable option.
Dismissal at the initiative of the employer for violating job descriptions or for committing an offense occurs under the article that provides for this. In this case, termination of the contract occurs immediately from the moment the dismissal order is signed.
Indefinite employment contract - sample
It is worth considering in more detail what an employment contract should contain. Information about this will allow you to compile it correctly. You can always find a sample on the Internet, but you can use it as a basis. In this case, editing is required. This is what should be in the document (according to Article 57 of the Labor Code of the Russian Federation):
- full names of the parties;
- information about the person who represents the employer and the number of the general power of attorney defining his rights;
- date and place of signing the document;
- place of work, position, probationary period, salary amount;
- employee functions;
- the date from which the contractual relationship with the employer begins;
- time of work and rest, if this does not coincide with the provisions of the Labor Code (for example, shift work);
- compensation and labor guarantees;
- working conditions in the workplace and the nature of the work;
- other conditions that must be provided.
Sample employment contract
It is worth noting that sometimes special requirements are imposed on employees. For example, some positions must be licensed or credentialed to perform their professional duties. Thus, the agreement can include that the employee must have these documents, as well as indicate his responsibility for providing false information.
It is recommended to indicate where all issues should be resolved if the problem cannot be resolved pre-trial. All agreements are concluded in two copies, unless otherwise provided by law. One remains with the employee, the second with the employer. At the same time, they must be stored in a safe, since it contains personal data. Violation of the conditions for storing personal data is considered grounds for drawing up a protocol by responsible employees and imposing a fine.
In what cases is it signed?
According to the general procedure, employment agreements are signed for an indefinite period of validity.
A temporary contract may be concluded if it is expressly permitted by law. The Labor Code also provides for situations in which this can be done by mutual will of the parties. Let us list the unconditional grounds for signing a temporary agreement (Part 1 of Article 59 of the Labor Code of the Russian Federation):
- the employee takes a temporary job in the place of another employee;
- non-permanent activity (up to two months);
- seasonal work;
- the citizen is sent to another country;
- a person is hired for a position related to temporary activities for the reconstruction of production;
- the company was created for a certain period;
- the result of work activity is tied to a specific date;
- a citizen is accepted for an internship;
- a person has been elected to an elected position;
- the unemployed person is sent by the labor exchange to short-term or public work;
- a citizen undergoes alternative civilian service.
The Labor Code of the Russian Federation and federal legislation may establish other grounds.
By agreement of the participants, the document is signed in the following situations (Part 2 of Article 59 of the Labor Code of the Russian Federation):
- the employer is a small business with up to 35 employees (in retail trade, consumer service organizations - up to 20);
- the employee has received a pension due to age or disability, and therefore cannot work permanently;
- a citizen moves to work in a company located in the northern regions;
- the person is hired for work related to emergency situations;
- the employee is hired for a position through a competition;
- a citizen is accepted to perform creative activities;
- The company hires a director, his deputy, and a chief accountant;
- the employee is a full-time student;
- a citizen is accepted into the crew of all types of ships;
- the person gets a part-time job with the employer.
Important! It is allowed to hire citizens for temporary work to replace an employee signed under a fixed-term contract.
Is it possible to convert a fixed-term contract into a permanent one?
The possibility of transferring an employee from a fixed-term employment contract to an open-ended one is provided for by the general rules on changing the contract (Article 72 of the Labor Code of the Russian Federation).
A temporary contract can be extended for an unlimited period in the following cases:
- the parties decided to recharacterize the agreement by mutual consent;
- the temporary agreement expired, but the parties to the relationship continued to cooperate;
- the court recognized the temporary employment relationship as permanent.
Despite the fact that the agreement can be renewed automatically, it is advisable to prepare personnel documents.
Types by timing
According to the terms, contracts are divided into fixed-term and unlimited. Despite the clearly regulated conditions of such documents, many organizations seek to conclude a fixed-term employment contract with staff, explaining that the amount of work performed is temporary, when this type of agreement is possible only under limited circumstances prescribed in the labor code. In all other cases, the correct option for legitimizing labor relations is an open-ended contract .
How to convert a fixed-term employment contract into an open-ended one: step-by-step instructions
If the employer intends to continue cooperation with the employee, he must notify him of the termination of the temporary employment relationship three days in advance.
Sending a notice of termination of the contract (step 1)
Before drawing up an additional agreement, you should obtain consent from the employee. The employer sends a notice to him, informing him about the expiration of the document’s validity period and offering to extend it for an indefinite period. After receiving the citizen's written consent, you can proceed to the next step.
Sample notification
Drawing up an additional agreement (step 2)
If the changes concern only the duration of the relationship, there is no need to formalize a transfer to another position. The personnel employee draws up an additional agreement, in which he indicates that it should be considered concluded for an unlimited period.
Sample agreement
Signing the order (step 3)
Finally, the employer signs the order. Since 2013, each company has been developing the form at its own discretion.
You must enter the following information:
- company name;
- date and document number;
- information about the employee;
- the circumstances surrounding the extension of cooperation;
- an indication that the agreement is recognized as permanent;
- manager's signature.
What documents are required for registration?
Mandatory papers are presented with the following information:
- military tickets;
- if yes – related to education;
- SNILS;
- work books;
- TIN;
- civil passports.
But managers have the right to request other documents if they consider it necessary:
- Confirmation of no criminal record.
- From a medical facility.
- Personal medical records.
- Information regarding family income.
Written consent from guardianship authorities and parents is required when contracts are signed with minor employees. A fact of receipt of secondary education or a certificate stating that the citizen is currently studying by correspondence is required.
Personnel department employees at the enterprise register and store copies of papers submitted by the citizen. The personal work record book must be presented in the original. The company can draw it up from scratch if the document was missing before.
Employer's order
After the additional agreement is signed, it is approved by order of the manager. This is necessary because, by virtue of Art.
68 of the Labor Code of the Russian Federation, registration of labor relations with an employee is carried out using an order. If the conditions of the relationship change significantly, a document of equal legal force is required to record this fact - that is, an order. A similar conclusion can be drawn from Art. 9 Federal Law “On Accounting”.
Read more: Housing certificate for the purchase of an apartment for a young family
Previously, orders of this kind had to be issued in form No. T-1, approved by Resolution of the State Statistics Committee of the Russian Federation No. 1 of 2004.
Therefore, in order to approve an additional agreement to an employment contract, you can use not only this form, but also your own form developed and approved by the employer. The order must contain:
- Name of the organization.
- Document number and date.
- Full name of the employee, his position and structural unit.
- The conditions under which his work takes place from this moment on.
- Position and name of the manager.
The order must be communicated to the employee against signature , so the corresponding column should be included in the form. But since it is an internal document, there is no stamp on it.
Termination of an agreement
Termination of an employment agreement is possible both on the part of the employee and on the part of the employer.
To do this, the employee only needs to write a corresponding application for dismissal from his position and work out the period prescribed by law. However, it will not be easy for an employer to fire an employee hired under the BTC. We recommend you study! Follow the link:
How to fill out an employment contract form between an individual entrepreneur or between an entrepreneur and an employee
Legal grounds for dismissing an employee from his position as an employee at the will of the employer:
- liquidation of an enterprise, for example, in case of bankruptcy;
- reduction in the number of full-time personnel involved in production;
- if the worker does not correspond to the position he occupies;
- regular violations of labor discipline (one or more during the year);
- an employee being under the influence of alcohol or drugs at the workplace;
- loss of a citizen’s ability to work for a period of more than four months (not related to an industrial injury);
- in case of proven fact of theft by an employee on the territory of the enterprise.
The grounds for suspension of labor relations must be reflected in the prepared list of documents in each of the listed situations.
For example, test reports, certification results, medical examination, as well as a manager’s order to reduce a position, an employee’s application for dismissal and other reasons.
Let's sum it up
Thus, the employer has the right to extend the temporary contract for an indefinite period. Notice should be sent to the employee. After receiving consent, an additional agreement or order is signed. If the relationship cannot be extended for objective reasons, the citizen can be transferred to another vacant position.
Articles recommended for you:
Even relationships with a limited duration can change during the course of work. After all, the initial amount of work for which the employee was hired may increase. Or the employee, whom the worker was hired to replace, may quit.
Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to find out how to solve your particular problem , contact a consultant:
+7 (Saint Petersburg)
APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.
It's fast and FREE !
In this regard, the question arises about the continuation of a fixed-term agreement, as well as the transformation of cooperation into an indefinite one.
Differences between types of documents
Permanent and limited duration agreements have many parallels. For example, a similar list of benefits and guarantees, including vacations and sick pay, not to mention payment for overtime work and compensation for hazardous working conditions.
At the same time, the worker must still obey the internal labor regulations and comply with the norms of local regulations, not to mention the orders of management.
And, nevertheless, these types of documents still differ from each other and not only in the main feature, which is contained in the validity period, but also in other aspects.
Thus, it is possible to conclude a permanent contract at almost any enterprise, regardless of its specifics. But a fixed-term contract must meet the requirements of the law enshrined in Article 59 of the Labor Code of the Russian Federation.
That is, a contract with a limited duration can be issued:
- to perform a certain amount of work, for example, project development;
- to replace a temporarily absent employee who may be on maternity leave or sick leave;
- for seasonal work, such as harvesting;
- to perform a certain range of duties in a company that was initially created only on a temporary basis - for example, supporting the construction work of a bridge;
- for the duration of an internship or practical training.
Also, a fixed-term agreement can be concluded with persons sent to companies by the labor exchange on a temporary basis, or with citizens who undergo alternative service instead of standard military service for a year.
That is, in order to hire a worker specifically on the terms of a fixed-term contract, it is necessary to prove the impossibility of employment on a permanent basis by indicating the reason in the contract.
This is not required for permanent employees.
This measure is provided by law in order to protect workers from unscrupulous employers who, by concluding a fixed-term contract, are trying to evade a number of guarantees established by the Labor Code of the Russian Federation.
Thus, it is quite difficult to fire an employee employed on a permanent basis, especially if he belongs to a preferential category. But with a contract with a limited duration, you can terminate the contract even with a pregnant woman, regardless of her situation.
It is worth noting that in order to protect the rights of ordinary employees, the law provides for another protective measure.
In particular, Article 58 of the Labor Code of the Russian Federation states that concluding an agreement with a limited duration without sufficient grounds is prohibited.
Accordingly, if during an inspection or upon a complaint from the same employee it is determined that his duties are of a permanent nature, the contract will automatically be recognized as unlimited-term with all the circumstances arising from these legal relations.
How to transfer an employee from a temporary to a permanent contract?
The Labor Code (LC) of the Russian Federation provides for two main types of employment contracts:
- Indefinite – valid from the moment a new employee is hired until his dismissal for any reason (own desire, layoff, etc.).
- Urgent - concluded for a certain time and valid only during this period. Art. 58 of the Labor Code of the Russian Federation provides that the duration of such an agreement should be no more than 5 years, except in special cases separately provided for by law.
By default, it is considered that the contract between the employee and the employer is concluded for an indefinite period, unless a period is expressly specified in it. At the same time, the legislation allows that a fixed-term employment contract can become indefinite.
Articles on the topic (click to view)
- What to do if the employer does not give the employment contract
- What is the difference between a collective agreement and an employment contract?
- Apprenticeship contract with an enterprise employee: sample 2021
- Terms of remuneration in an employment contract: sample 2021
- Go on maternity leave from the labor exchange
- Notice of extension of a fixed-term employment contract: sample 2021
- Notice of termination of a fixed-term employment contract: sample 2021
Compilation methods:
- Expiration of the contract without dismissal of the employee.
- Changing the terms of the employment contract regarding the term using an additional agreement.
- Recognition of a fixed-term employment contract as indefinite in court.
The last option can be used when the employer has significantly violated the rights and interests of the employee, unreasonably forcing him to enter into an employment contract not on a permanent basis, but temporarily.
The point is that Art. 59 of the Labor Code of the Russian Federation provides for a number of cases when it is permissible to conclude such an agreement (seasonal work, replacing an absent employee who, by law, retains his job, etc.) - and in the event that none of them applies to the current situation, The employer’s actions can be challenged in court, recognizing a fixed-term contract as concluded for an indefinite period.
Required condition
Preparation, approval and the final stage of certification by the signatures of the employee and the employer of the reached labor agreement, the content of which includes a condition on the term, takes place according to the rules of the Labor Code of the Russian Federation (Section III).
Article 57 of this Code lists the mandatory requirements for the content of an employment contract. These also include an indication of the term of its imprisonment (if there is one) or indefiniteness. In case of failure to comply with this requirement, the legislation provides for administrative liability for officials guilty of incorrect maintenance of labor documentation. When conducting an inspection, the labor inspectorate, the prosecutor's office, and other supervisory authorities may impose penalties on the head of the organization (IP) if they discover cases of omission to the terms of the urgency or indefiniteness of the contract.
It should be remembered: violation of the rule on the duration of an employment contract leads to its recognition in the future as indefinite, with all the ensuing consequences for the employer. Such an agreement can be terminated only in the manner prescribed by the Labor Code of the Russian Federation. This position is recorded in paragraphs 14 and 15 of the Resolution of the Plenum of the RF Armed Forces dated March 17, 2004 No. 2.
What it is
An open-ended employment contract, according to the Labor Code of the Russian Federation, is an agreement set out on paper, concluded for an unlimited period between an employee and an employer. If a company needs an employee for a long period, often the employer and the future employee sign an agreement of this type.
Like any document, this type of agreement has its own specific features:
- The transaction is voluntary.
- There is no specific expiration date.
- This type of contract can be concluded by both individuals and legal entities.
- An agreement without a validity period implies a long-term employment relationship.
This agreement has the right to be terminated by both the employer and the employee. Both parties can terminate the document at any stage. But in the event of an expression of will to terminate on the part of the employer, there are some nuances that will be described below.
It is not necessary to indicate the basis when drawing up such a document. The need for working personnel is determined by the staffing table and the availability of vacancies.
Normative base
Of course, most workers are interested in permanent employment. However, in some cases, many agree to cooperate for a limited period of time.
Thus, within the framework of Article 59 of the Labor Code of the Russian Federation, by agreement of the parties, a fixed-term agreement can be concluded:
- with an individual entrepreneur, provided that the total staff does not exceed 20 people and the small company is engaged in the field of trade or consumer services;
- pensioners, if they are not confident in their strengths and state of health and initially set a time frame for future cooperation;
- in the northern regions, if you plan to move for the duration of the contract or on a rotational basis;
- to participate in work to prevent or eliminate emergency situations;
- in the field of creativity to participate in a specific project, for example, filming a film;
- with general directors of LLCs and chief accountants, who are hired based on the decision of the founders.
For all of the above cases of employment on a temporary basis, the parties are free to determine the period of cooperation themselves, but taking into account the norms of Article 58 of the Labor Code of the Russian Federation, according to which the maximum term of the contract should not exceed 5 years.
When is signing such agreements relevant?
Such contracts are precisely defined in Article 56 of the Labor Code of the Russian Federation. This is an agreement under which a citizen is assigned a specific job. The person is required to perform basic functions, for which the employer transfers remuneration.
According to the general rules, in most cases it is open-ended agreements that apply. There are practically no restrictions on the validity period of such documents. Articles 78, 80-81 of the Labor Code of the Russian Federation describe situations when contracts can be terminated.
Permanent contracts are not permitted under the following circumstances:
- Alternative civil service.
- There is a referral from the employment service for urgent work.
- Election to an elected position.
- Admission with internship.
- Drawing up an agreement with a company operating for a limited period.
- A production expansion of a temporary nature, due to which it was necessary to hire new employees.
- Assignment to work in another state.
- When the contract involves seasonal labor.
- Reception with short-term work.
- Another employee is temporarily absent, but his duties are being performed.
Transfer from a fixed-term employment contract to an open-ended one in 2021
Thus, by virtue of Article 72 of the Labor Code of the Russian Federation, the directorate of the institution and the employee have the right to requalify the agreement at any time, taking into account that the law has created all the conditions for such situations.
A fixed-term contract becomes permanent in the following cases:
- if the parties agree to move to another level of cooperation by mutual consent;
- if, after the expiration of the agreement, neither management nor the employee demanded its termination and actually continued cooperation;
- if the contract was recognized as unlimited due to a violation of the conditions for concluding a contract with a limited duration.
Procedure, rules and conditions
One of the main conditions for the transition of a mutual cooperation agreement to a different quality is documentation, which many do not know how to do. Meanwhile, the law, the procedure and conditions for changes are regulated in sufficient detail.
Automatically
A contract can be automatically recognized as indefinite in two cases:
- if the parties continued cooperation after the expiration of the agreement;
- on the basis of a court decision, which transformed the contract into an open-ended one due to violation of the terms of its conclusion.
Through dismissal
As a rule, after completing a certain amount of work or replacing an absent employee, the temporary employee is dismissed. However, in some cases, especially if management values his business qualities, separation suggests an alternative.
That is, if there is a vacancy in the company’s staff, and on the basis of indefinite employment, the worker quits after the expiration of the agreement period. And the next day he is accepted, but for a different position.
How to document?
The moment when a fixed-term contract becomes indefinite is preceded by documentation, taking into account that these are the requirements of the law.
Article 72 of the Labor Code of the Russian Federation states that any terms of the agreement can be changed only on the condition that they are formalized in writing accordingly, that is, by issuing an administrative act and drawing up an additional agreement to the contract.
Additional agreement
Amendments to the employment contract, namely, to one of the mandatory conditions relating to the validity period of the specified document, as well as to the scope of responsibilities, if they are modified in view of the new level of cooperation, are drawn up in the form of an agreement.
A sample can be found below:
Order
Naturally, in order to give the agreement legitimacy, the above document is approved by order. It actually stipulates the time when the contract becomes open-ended, as well as other conditions, if any.
Sample order:
When is transfer not possible?
In accordance with Article 59 of the Labor Code of the Russian Federation, labor relations with a limited validity period are formalized only if the nature of future cooperation is possible only on a temporary basis.
If we are talking about seasonal work, as well as the same practice or alternative service, it will not be possible to transform a fixed-term contract into an open-ended one.
Also, a similar situation applies to the following cases:
- when holding an elective position;
- when accepting a job in a company created for a certain period to perform certain work.
However, if the scope of responsibilities can be changed - for example, by increasing them or in connection with the dismissal of the employee, to replace whom the conscript was accepted - the contract can be re-qualified to a different quality, subject to mutual agreement on both sides.
Are pay slips required? Find out here.
Is the 13th salary included in the calculation of vacation pay? Details of the calculation are here.
Advantages of an open-ended contract
When applying for employment, a potential employee will make his choice in favor of an employer offering conditions for an indefinite duration of the employment contract. This condition provides guarantees of protection against unfair actions of the employer.
An employment contract with an indefinite duration has significant advantages for the job seeker:
- the ability to confidently plan your expenses, having a constant income in the form of a stable salary and a position included in the staffing table,
- a complicated procedure for dismissing an employee at the initiative of the employer,
- Permanent employees can receive additional bonuses from the employer in the form of a voluntary health insurance policy, bonuses, and participation in social programs.
The most important points specified in the relevant agreement include:
- labor function,
- position according to the staffing table,
- terms of reference, duties and rights of the parties,
- employee remuneration, possible incentive or compensation payments.
In addition to the main aspects of future work, the employment contract may include additional clauses on continuous improvement of skills, payment for the relocation of the employee to the place where work duties are performed, payment for travel from the place of work to home, and others.
Subtleties and nuances
When hiring a worker on a temporary basis, many employers believe that after the expiration of the contract, the employee can be fired quite simply.
Meanwhile, termination of a fixed-term employment contract also provides for a certain procedure, failure to comply with which may result in the agreement being automatically recognized as indefinite.
By virtue of Article 79 of the Labor Code of the Russian Federation, a temporary employee must be notified in writing of the termination of cooperation three days before the proposed dismissal. Exceptions are employees who are hired to replace the main employee.
If no notification was received, after three days the agreement is automatically considered renewed and is already permanently valid.
At the same time, the most controversial situation appears precisely in the case when it is impossible to fix the validity period in a calendar date. This is due to the fact that we are talking about completing a specific task, which can be completed in either three months or six months.
In this situation, the law recommends drawing up an act of acceptance and transfer of work, thus setting a specific date for both delivery of notice and dismissal.
Other circumstances are also possible, which again lead to the automatic transformation of a fixed-term contract into an open-ended one.
Let's say an employee can be transferred to another position on a temporary basis. In the meantime, the contract for his main position will expire. And if he is not notified three days before the end and the relationship is not terminated, the agreement will become permanent with all the ensuing obligations.
About extension, making adjustments
Extension of fixed-term agreements is permissible under the following circumstances:
- In the case of pregnant women.
- If the main employee does not show up on site, which is why the temporary one continues to perform his duties.
- In the case of a temporary transfer, as a result of which a decision is made to remain with the second manager.
This is often done if the amount of work is not completed completely. Or when the agreed deadline arrives, but the employee never begins his duties.
The contract is renewed for a new fixed-term agreement if we are talking about the head of the company. This is what they say in Article 275 of the Labor Code of the Russian Federation. According to it, the term of office of such specialists is determined according to the current Charter or depending on the agreement between the parties.
Changes are most often associated with the fact that the same process continues, some conditions simply become different. The initiator of such adjustments can be any of the parties. Or this happens for reasons that do not depend on them.
Additional agreement on changing the term
In fact, an additional agreement in the case when the contract is extended due to the fact that the period has expired, but no one expresses a desire to terminate it, is a purely formal document.
However, it should be drawn up to avoid confusion in personnel documentation. If there is no agreement that changes the term of employment in the employer’s materials, the question may arise as to whether the employee was fired at all - or continued to work.
It is stipulated that this document must meet the following conditions:
- Be in writing.
- Be prepared in two copies, one for each party. Since one of the copies is given to the employee, he must put a mark on the second one indicating that he received his.
The document must contain the following information:
- Name of the organization or name of the individual entrepreneur.
- The name and position of the manager, by virtue of the law and the Charter, acting on behalf of the organization. If the employer is a citizen-entrepreneur, this clause is not required.
- Full name of the employee whose fixed-term employment contract is being transformed into an open-ended one.
- The position he holds in the company.
- Details of a previously concluded employment contract (its date and number according to the internal document flow rules established at the enterprise).
- The essence of the changes being made. The wording will be approximately as follows: “Due to the expiration of the validity period and due to the requirements of Art. 58 of the Labor Code of the Russian Federation, consider the employment contract No.... dated... concluded for an indefinite period.” The above version is indicative; the parties may use other wording.
- Signatures of the parties. A copy given to the employee will also require a company seal.
An additional agreement, as a rule, is prepared by employees of the enterprise’s personnel service on the orders of its head.
Necessary documents when changing conditions by agreement of the parties
In the event that the employee and employer decide to convert the contract into an open-ended one without waiting for its expiration, an additional agreement will be required. How to do it and when does it take effect?
Preparation and preparation of papers
The law does not indicate who can initiate the transfer of fixed-term employment relationships to indefinite ones. This can be done either by the employee by submitting a corresponding application during the contract period, or by the employer by inviting the employee in writing to change the conditions.
Regardless of who proposes to do this, the procedure will be the same:
- An additional agreement to the employment contract is being prepared.
- The employer issues an order that approves the document signed by the parties.
The specific wording used by the parties in the document remains at the discretion of the parties: the legislation does not provide standard forms and forms for employment contracts. In practice, changing the deadline can be formalized using statements like:
- “Consider the employment contract No.... dated... concluded for an indefinite period.”
- “Exclude from the employment contract No.... dated... clause number...” (here is the clause of the original contract that stated the validity period).
The parties may use other wording if they wish. The main thing in this case is to clearly and unambiguously establish in the employment contract the conditions under which it ceases to be limited to a certain period of validity.
Important! As in the case of expiration, when concluding an additional agreement, an order from the employer will be required. It is compiled according to the same rules as described above.
We have also prepared material for you on how to transfer an employee from an open-ended contract to a fixed-term one. We also invite you to read about the specifics of changing an employment contract due to an employee’s transfer to another position, a change in salary or a change in the employee’s last name.
Arbitrage practice
As judicial practice shows, the most controversial are dismissals during which management does not know how to renew the contract, and therefore it automatically changes its qualifications.
Thus, the appeal ruling of the St. Petersburg City Court states that due to the fact that the employee was transferred to another position and was not warned about the expiration of the contract for the main position, his dismissal is illegal.
Also, another of the most common cases considered in court is the initial conclusion of an agreement with a limited duration in order to reduce the amount of benefits and guarantees specified in the Labor Code of the Russian Federation, as evidenced by the decision of the Volodarsky District Court of Bryansk.
And another reason for challenging the agreement is banal violations of the norms of Article 59 of the Labor Code of the Russian Federation. In accordance with it, a fixed-term agreement must necessarily contain the validity of the formalization of this type of legal relationship (Decision of the Beloretsk City Court No. 2-1329/2017).
- Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
- All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.
That's why FREE expert consultants work for you around the clock!
- via the form (below), or via online chat
- Call the hotline:
- Moscow and the Region
- St. Petersburg and region
- Regions
APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.
By agreement between the employer and the subordinate and if there are reasons, the terms of cooperation may change. The employment contract is extended or issued for an indefinite period.
Important Tips
Well, lastly, in content, but not in meaning. Polite and correct communication with the employer, knowledge of your rights in terms of labor legislation, is more likely to earn you respect rather than scare you away. Although in our country anything can still happen... The ultimate truth is the district court at the location of the employer, which hears cases of reinstatement at work without paying state duty, and you are not deprived of the opportunity, if necessary, to appeal to it.
If the court decides in your favor, you will also be paid for forced absenteeism. The main thing is to submit an application no later than a month from the date of receipt of the work book (it should be issued on the day of dismissal against signature not after, but simultaneously with the bypass sheet) and competently justify your claims (identified violations) to the employer.
How to convert a fixed-term employment contract into an open-ended one
If, in the process of working together, the parties decide to continue the employment relationship, by law it is possible to convert a fixed-term employment contract into an open-ended one at any time.
Essential conditions
According to Art. 72 of the Labor Code of the Russian Federation, the terms of the agreement are subject to change if:
- at the end of the cooperation period, the employer and subordinate did not take any action to terminate it;
- violations of the execution of a fixed-term contract were identified (court decision);
- The parties are interested in continuing cooperation.
The transfer to a permanent employment contract is carried out automatically or through documentary registration.
Procedure for making changes
If the boss and subordinate have agreed on further joint activities, then three days before the end of the employment contract they draw up an additional agreement (Article 72 of the Labor Code of the Russian Federation). It indicates the position that the person will hold in the future, the assigned salary and the start date of permanent work. The details and signatures of all participants are provided.
Based on the employee’s application, an order is drawn up to recognize a fixed-term employment contract as open-ended, which indicates the beginning of a new period of employment relations and the employee’s consent.
Sample additional agreement:
Employment contract with the director: features
Recently, more and more often, business owners hire outside directors. This is necessary if the founder simultaneously owns several corporations or when he realizes that he cannot manage the company. Not everyone has the necessary experience to successfully manage an organization and set up all processes to generate profits and optimize costs.
If the company's charter specifies the duration of the director's powers, then a fixed-term contract is required. In this case, the document may contain information about automatic renewal if neither party expresses an intention to change it or terminate it. However, an open-ended contract is allowed if the company’s charter does not specify the term of office of the manager.
It is worth noting that a director can only be dismissed if the provisions of the agreement are violated. This is done directly by the business owner. However, the law does not allow the company to recover losses that the company suffered due to the incompetent actions of the employee on its own. To do this, you need to go to court and prove your position. Then, on the basis of a court decision, collection will occur.
Hired director
Important! Today, some employers, when issuing calculations, remind employees, including directors, of all their mistakes. For this they deduct a certain amount themselves. This is not allowed. If an employee discovers such a violation of his rights, he can go to court or the prosecutor’s office to conduct an investigation and defend his rights.
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:
Common Mistakes
The main mistake of the employer is the opinion that benefits do not apply to an employee under a fixed-term contract and it is easier to fire him. Violation of established procedures leads to the automatic transfer of a fixed-term employment contract to an open-ended one. If 3 days before the expected date of completion of cooperation a person has not received a notice of termination of the contract, it can be considered extended for an indefinite period, i.e. before a decision is made to dismiss an employee.
If, upon termination of cooperation, difficulties arise in determining the last working day, it is advisable to draw up an acceptance certificate for the work performed.
Sep 10, 2019adminlawsexp
What conditions should be specified in the contract?
- Subject of the agreement. The type of work performed, the position, the expected requirements (qualifications, quality), and the period of working time must be carefully described. Also, the employer’s obligations are determined: ensuring working conditions, social guarantees that comply with modern legislation.
- Duration of the contract. It is concluded for an indefinite period. Its effect begins from the moment it is signed by both parties. The date the employee begins performing his duties is indicated.
- Rights and obligations of the employee. To perform labor functions, the employee is assigned certain responsibilities by contract. Such as:
- Compliance with all labor regulations of the enterprise.
- Compliance with established labor standards.
- Compliance with labor discipline.
- Bearing responsibility for the property of the organization entrusted to him.
- Also, by law, an employee is granted the following rights:
- Relevant work and workplace determined by the contract.
- Payment for work performed within the time limits established by law.
- The right to rest.
- Social guarantees.
- Rights and obligations of the employer. The employer's responsibilities are carried out by an authorized person of the organization, the management bodies of the enterprise, and include: Compliance with labor law, collective agreement, labor agreement.
- Ensuring working conditions and safety.
- Timely payments for work performed.
- Provide employees with information about adopted regulations.
- Fulfill workers' social insurance obligations.
- Compensate for damage incurred by the employee while fulfilling his labor obligations.
- Conclusion, modification, termination of contracts, on conditions that do not contradict the law.
- Working hours should not exceed 40 hours per week.
Be alert
Please note that a fixed-term contract concluded in accordance with the procedure established by law must be terminated in a timely manner so that it does not automatically become an agreement concluded for an indefinite period. Otherwise, the Labor Code of the Russian Federation makes transferring to a fixed-term employment contract extremely difficult.
It is better to propose a draft additional agreement for signing within a period exceeding 3 months before the end of the main agreement. In this case, if a labor dispute arises with the prospect of litigation, the employer will have the opportunity to declare that the claim will be left without consideration due to the missed deadline for protecting the right. In accordance with Part 1 of Art. 392 of the Labor Code of the Russian Federation, it is 3 months.
If you find an error, please select a piece of text and press Ctrl+Enter.