Employment Agreements
The employment contract sets all the rules of the relationship between employee and employer, and it is the first thing a court looks at in a dispute. We draft the employment contracts you will sign with your employees from scratch to fit your company’s needs, and review and update your existing contracts in line with current legislation and Court of Cassation decisions.
What is an employment contract and what does it contain?
An employment contract is a contract under which the employee undertakes to work in a dependent relationship and the employer undertakes to pay wages. Under Labour Law No. 4857, employment contracts for a term of one year or longer must be in writing; in practice, every employment contract should be in writing to make proof easier.
A well-drafted employment contract covers the job description, place and hours of work, pay and fringe benefits, the probation period, whether overtime is included in pay, confidentiality and non-compete obligations, intellectual property rights and the information to be given on the processing of personal data.
What is the difference between fixed-term and indefinite-term employment contracts?
As a rule, an employment contract is for an indefinite term. A fixed-term contract may be concluded only on objective grounds, such as work of a fixed duration, the completion of a specific job or the occurrence of a specific event. Without a material reason, a fixed-term contract cannot be renewed back to back; otherwise the contract is treated as indefinite from the outset.
Scope
- Drafting employment contracts with employees from scratch, and reviewing and amending existing contracts
- Preparing contract templates that vary by position
- Structuring confidentiality, non-compete and intellectual property provisions
- Carrying out changes to existing contracts lawfully
How We Work
- Reviewing the company’s workforce structure, positions and existing contracts
- Reporting risky and missing provisions
- Preparing contract templates by position
- Structuring the process lawfully where existing employees’ contracts need to change
- A short guide for the HR team on using the templates
Team
Frequently Asked Questions
What is the maximum length of the probation period?
Under the Labour Law, the probation period may be up to two months; it can be extended to four months by a collective agreement. During the probation period, either party may terminate the contract without notice and without compensation, but wages for the days worked and other entitlements must be paid.
Can we include overtime pay in the salary?
Under Court of Cassation case law, the employment contract may provide that up to 270 hours of overtime per year are included in the salary. Overtime above this limit must be paid separately. The provision should be stated clearly and comprehensibly in the contract.
Can we impose a non-compete obligation on an employee?
Yes, but within limits. The non-compete must be in writing; it is valid only for jobs in which the employee gains knowledge of the customer base or trade secrets, and it must be reasonable in terms of place, time and type of business. Except in special circumstances, it cannot exceed two years. An excessive non-compete may be narrowed by the judge.
Can we change existing employees' contracts?
A material change in working conditions can be made only with the employee's written consent. The employer notifies the change in writing; a change the employee does not accept in writing within six business days does not bind them. Changes therefore need to be justified and made in accordance with the procedure.
Would you like to discuss this service? Schedule a meeting with us — the first meeting is free of charge.
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