Modern experts in the field of jurisprudence are increasingly faced with problems that literally a few years ago did not arise. The issue of the validity of contracts over time and their extension is important. Moreover, sometimes it’s decisive if it comes to a trial. Whether this will be an additional agreement or a clause of a prolongation agreement (sample - in the text), the parties decide. We will deal in more detail with the most common cases. In particular, with the extension of a fixed-term employment contract, loan and lease.
Contract extension - what's this?
In the most general sense and understanding, this term in Latin means "lengthen". In fact, this is an extension of the validity of a process or something else. In medicine, for example, this applies to medicines. And in the theory of law and paperwork, extension is understood as the extension of the validity (if limited) of a particular document.
When is a fixed-term employment contract extended?
The Labor Code of the Russian Federation in article 59 defines the conditions under which it is possible to conclude a fixed-term labor contract with an employee (for a period of not more than five years). There is a case when the extension of the contract is the direct responsibility of the employer. Amendments to the TC on this issue were made in 2015. If a fixed-term employment contract expires during a woman’s pregnancy, the employer must extend its validity when providing a special supporting certificate and personal statement. The question is set forth in article 261 of the Labor Code of the Russian Federation. It is important to remember that the contract in any case will not become unlimited, and it will be terminated after the end of the maternity leave provided to the woman in accordance with the law. Prolongation may not be carried out if the main employee has left, and there is no work for the temporary worker of the corresponding qualification either lower-paid (but taking into account the state of health of the woman), or there is, but she does not agree to switch to it. The dismissal in this case occurs in a general manner, and no additional payments (severance pay) are made.
Sample Application
This sample will help the employee to navigate and do everything right, and then the contract will already be extended. This is just an example, fill out the application with your details.
Director of the State Unitary Enterprise “Vasilek”
Vorontsov D.A.
STATEMENT
I ask you to extend the duration of the fixed-term employment contract dated December 13, 2014 No. 111 until the end of pregnancy in accordance with Part 2 of Article 261 of the Labor Code of the Russian Federation.
Application:
- Medical certificate dated May 23, 2015 No. 65, issued by the antenatal clinic No. 2 of Lensk.
Procurement Specialist (signature) D.E. Romashkina
Extending or renewing a lease?
The Civil Code of the Russian Federation does not use the concept of “prolongation” in its norms, but prefers to call it an extension. The lease may be terminated for various reasons, including such as liquidation of an organization improper execution, etc. But the legislator provided for certain cases when it can be renewed for an indefinite time and under the same conditions that have already been agreed. The extension of the contract is what actually happens, but has a slightly different name.
The legislator only gives the tenant the right of advantage to conclude a contract for a new term over other competitors. However, he does not have the right to demand this.If the landlord after the end of the term is no longer going to transfer property to someone for rent (or draws up relations in a different form - a loan, simple partnership), then the tenant cannot apply for a new contract, his right cannot be realized. There may be a different situation. The landlord refused the tenant with an advantage, but within a year concluded an agreement with another. Such actions are unlawful and may be challenged in court.
In addition, the law provides for the automatic renewal of a lease upon the occurrence of certain conditions, namely:
- use of property by the tenant continues even after the expiration of the contract;
- there are no objections from the landlord.
Prohibition of renewal
It is possible and may even be agreed upon in the contract. However, if disputes arise, the court’s position on this issue is ambiguous. In most cases this option is allowed. But there are judicial acts that indicate the imperativeness of the norm of the Civil Code of the Russian Federation (Article 621). Some sources provide data on the percentage of such opposite approaches in arbitration practice - 75% and 25%, respectively.
You can formulate this condition, for example, in the following form. "This contract upon expiration is not subject to renewal for an indefinite period."
Lease renewal
The clause of the extension agreement (a sample of it you will find below) also has a right to exist, it is entered upon its conclusion in the text. It is important to remember one caveat. You must specify the number of times by which the extension of the contract is possible. In the opposite case, the action will be regarded as single (single). After that, the document will cease to be valid or will be renewed indefinitely.
An extension agreement is a very common occurrence. Its competent design will help to avoid many misunderstandings and disagreements with the counterpart in the future.
The wording may read as follows: “After the expiration of the contract, the contract is prolonged on similar conditions, each time for the same period. Extension is allowed an unlimited number of times. "
The Civil Code of the Russian Federation also allows for the extension of terms through an additional agreement on the extension of the contract. It must be indicated in it for how long you extend its validity, and that other conditions remain the same.
In addition, it is recommended that a separate condition for prolongation is the absence of any objection from both sides regarding further cooperation.
Extension of a loan agreement
All legal relations on this issue are regulated by the 42nd head of the Civil Code of the Russian Federation. Extension of terms is allowed by mutual agreement of the parties, if the borrower is unable to timely fulfill its obligations. Extension of the loan agreement (sample wording - below) is made out by an additional agreement. Writing a story is straightforward. Next, the first paragraph indicate the new conditions. The wording could be this.
“The parties have agreed to state clause 1.4. Loan Agreement of April 23, 2011 No. 295 as follows: Under this Agreement, the Lender transfers funds to the Borrower in the amount of 360,000 (three hundred sixty thousand) rubles in the manner established by this Agreement, and the Borrower agrees to repay the loan no later than December 29, 2016. ., and also pay interest on the loan amount at the rate of 3% (three percent) per annum, in accordance with the terms of this agreement. ”
The second option involves the termination of the first contract and the conclusion of a new one, possibly already on different conditions and with different deadlines.
