Fixed-term contract: advantages and disadvantages of its conclusion

In some situations, the company is forced to hire an employee for a certain period. But, even inviting a person for a short time, the organization must enter into an agreement with him. Such an agreement is a fixed-term contract. The advantages and disadvantages of this type of arrangement will be discussed in this article.

Definition

Any employment relationship is governed by article 58 of the Labor Code. A fixed-term employment contract is a type of agreement between an employee and an employer that is concluded for a specific period of time.

The maximum duration of the contract is not more than five years. Otherwise, it becomes perpetual.

The condition and nature of work under a fixed-term contract is stipulated by Art. 58 and part 1 of article 59 of the Labor Code of the Russian Federation.

Reasons to conclude

The advantages and disadvantages of a fixed-term employment contract can be assessed by looking at the reasons for concluding this type of agreement. The grounds may be unconditional (part 1 of article 59 of the Labor Code of the Russian Federation) and by agreement of the parties (part 2 of article 59 of the Labor Code of the Russian Federation).

The unconditional grounds include:

1. Temporary absence of an employee involved in a specific position.
2. Conducting temporary work.
3. Conducting seasonal work.
4. Temporary work abroad.
5. Labor activity that goes beyond the usual work for the employee.
6. An increase in production for an indefinite period.
7. The company hosting the employee is created for a certain period of time.
8. Work during the internship or training.
9. Temporary performance of duties.
10. Ensuring the work of elected bodies.
11. Direction to work from the employment service.
12. Passing alternative civilian service.

By reason of agreement of the parties include:

1. The employer is a small business entity.
2. The employee is a senior citizen.
3. The employee has medical indications that do not allow to conclude an agreement for an unlimited period.
4. Work requires moving to the Far North.
5. Work is based on disaster prevention.
6. The employee received a position on a competitive basis.
7. The profession is creative and is used in the media, cinema, etc.
8. Conclusion of an agreement with the head, deputy or chief accountant.
9. The employee is a full-time student.
10. The employee works part-time.

If, for some reason, disputes arise between the parties regarding the execution of the agreement, it is automatically recognized as unlimited.

A fixed-term contract, a model of which is presented below, must necessarily contain information on the grounds for its conclusion.

Terms of registration

Perhaps the most important condition for drawing up a fixed-term contract is to determine the time frame and indicate the exact date of termination of the agreement.

But there are situations when it is impossible to determine the exact date. For example, an employee went on maternity leave and when exactly she will be released is unknown. Here, the expiration date of the agreement will be associated with the day the employee leaves the vacation.

If temporary work is associated with the execution of a specific amount of work or for the period of the organization’s functioning, then the conclusion of the contract will be regulated by part 1 of article 59 of the Labor Code of the Russian Federation.

The timing

The maximum contract period is five years. But the minimum term is not legally established. Therefore, the contract can be concluded for at least one day. Although the question arises here: “Is it necessary to conclude a fixed-term contract?” Its advantages and disadvantages clearly lose in this case to a civil law agreement.Therefore, for a one-day interaction, it is better to sign a contract or paid service.

If neither party at the time of the expiration of the labor agreement expressed a desire to terminate it, then it automatically becomes unlimited.

A fixed-term contract can be extended only in one case: if an employee submits a certificate of pregnancy before the end of her term and writes a statement.

If the fixed-term contract is repeatedly renegotiated for the performance of the same work, then it is advisable to sign an unlimited contract with the employee.

But in the case when the replaced employee returned to work, you can terminate the old contract with the conscript and conclude a new agreement. In this case, the term of the fixed-term contract may be different, and labor responsibilities.

The form. Key Documents

The contract is drawn up in writing and sealed by the signatures of both parties, as well as the seal of the organization. The text of the fixed-term contract consists of the same sections as the usual perpetual agreement. These include:

• subject of agreement;
• validity;
• rights and obligations of both parties;
• compensation and warranties;
• work schedule and the right to rest.

A fixed-term contract (a sample is presented below) must contain all the necessary clauses of a standard agreement so that no further disputes arise.

In order to conclude a fixed-term contract even for a minimum period, the applicant must submit a package of documents:

• passport of the Russian Federation;
• employment record form;
• SNILS;
• military card (only for those liable for military service);
• diploma or certificate;
• other documents that may be requested by the employer.

An application for work under a fixed-term contract can be omitted.

After drawing up the agreement, an order is signed for hiring the T-1 form. Within 3 days, the employee must familiarize himself with it and put a signature. At will, you can make a copy of the order, certified by the personnel department. The column where the conditions for admission to work are prescribed should indicate how long the agreement is valid. And in the line "Ground" indicates the details of the labor agreement and the period of the probationary period. Also, the order should contain information about the salary of the employee.

Payment

The size of the salary is agreed upon in advance, and this information should be included in the fixed-term contract. The advantages and disadvantages of such an agreement can be identified only during work, and before that you just need to follow all the rules established by law.

Salary of conscripts cannot be less than other employees of the organization. Depending on what position the employee occupies, he is entitled to allowances, bonus payments and surcharges. But the total payment of remuneration for the performance of duties may be less than that of the replaced employee.

Hospital, vacation and other compensations to the conscript are paid on the same basis as to employees drawn up under a perpetual agreement.

Termination

Termination of a fixed-term contract is executed using the order form T-8. The employee must inform the employer in three days that the employment relationship is terminated.

If the work was associated with the performance of specific obligations or seasonal work, the contract is automatically terminated when all work is completed.

First you need to notify the employee, and after that sign the termination of employment.

If the employee has not been notified in advance of the termination of the contract, he may appeal to the court to challenge this fact.

Conclusion with different categories of citizens

Consider the features of concluding an urgent agreement:

1. With persons under the age of majority. You can conclude an agreement with them:

• up to 14 years old, if the work involves performing in a circus, filming a movie, etc.
• from 14 years, if the work does not interfere with study and with the obligatory consent of the parents or guardianship authorities;
• from 16 years, if a general education is received and work can be combined with further studies.

2. With women expecting children. This category can work on a common basis and do not have the right to terminate an agreement with them until the birth of the child. A fixed-term contract may be terminated within a week after delivery.

3. With retirees. This type of agreement can be concluded with retirees, but if an employee worked in an organization under a termless contract and retired, there is no point in re-signing the document for an urgent one.

4. Management positions. A fixed-term contract is concluded solely by agreement of the parties.

Advantages and disadvantages

So, if you need to replace a temporarily non-working employee or organize work in a company that is created for a certain period of time, an urgent agreement will come to the rescue. The advantages and disadvantages of it can be clearly traced from the foregoing. Summarize the positive aspects of the fixed-term contract:

• the presence of a temporary, but fully secured employment. The fixed-term agreement includes all guarantees, payments and compensations, sick leave and holidays, which are available to employees with a fixed-term contract;
• the employer may not expand the staff (which subsequently threatens with compensation payments if the staff is reduced).

The main negative aspects include:

• the inevitable expiration of the contract;
• if the contract is not drawn up correctly, the employee’s ability to prove his innocence increases (which is inconvenient for the employer), that is, a fixed-term contract becomes unlimited.