The fundamental idea of employment contract is indefinite period. There are defined rules in the law concerning an employment contract for a fixed term period.
There must be a justified reason:
- Nature of the work (e.g. seasonal work, projects) )
- Hiring a substitute
- Other reason (e.g. school training period)
- Justified reason based on nature of activity (e.g. customer peaks)
- Un-settled demand (e.g. starting a new business model or a significant enlargement)
- Employee´s own proposal
Unsecure economical future or a big variation in the need of work force are not justified reasons. Also the employee´s own proposal must be justified.
The employer can arrange the weekly working hours so that they are calculated as an average over a certain period. According to law this period cannot be longer than 52 weeks but many collective agreements have shorter periods. During this period weekly working hours may vary a lot, typically between 0 – 48 hours.
When there is a big variation in the need of work force an employer can make a framework agreement with a job seeker. This means that a job seeker and a company agree that the company offers occasional job shifts or tasks. A job seeker has an option either accept this offer or decline it. If the job seeker accepts the offer then there will be an employment contract which lasts only one shift or task. A framework contract might contain that the salary will be paid on normal pay day of the company.
A so called 0-hours contract differs from a framework contract in a way that the employee is engaged to accept working hours offered by the employer but there is no guarantee that the employer will provide any.
A framework contract itself is not an employment contract. Therefore there is no demand concerning justified reason for a fixed term contract or requirements for ending an employment contract. A framework contract can be made for a fixed period or for an indefinite period with a possibility to terminate the contract.
for more information please contact:
Mika Pahlsten, Legal Advisor
puh. 050 3257275