Contract Terms
Pros/Cons to Fixed Contract
Cons: Only 2 years allowed. Must be a detailed justified reason for a fixed term. Pros: For certain managerial roles the probationary period can be extended to 180 days. But need to take into account length of contract.
Pros/Cons to Indef Contract
Pros: The standard maximum probationary period for an indefinite contract is six months and for a fixed term contract the maximum probationary period is 30 days. During the probationary period, a Worker can be terminated with 7 days’ notice and a valid reason. Cons: Redundancy dismissal requires severance
If fixed, how many extensions/when does a contract become indefinite?
Fixed term contract can only be extended for a maximum of 2 years
How long can we engage a worker here?
Indefinitely
Termination Requirements
Required Notice Period
Indefinite: up to 1 year is 15 days; 1-2 years is 30 days; over 2 years is 30 days plus 2 days per additional year. Fixed: no standard notice, agreed end date, probation is 7 days. Early termination will be mutually agreed.
Typical Mandatory Payouts to Term
Severance applies during redundancy. Calculated 1/5 average month salary per year of service. Less than 1 year is avergae salary of last 3 months. Unused vacation.
Any additional considerations/risks?
If a court finds a termination to be unlawful, it can order the employer to reinstate the employee to their previous position and pay them compensation for lost wages from the date of termination until reinstatement.
Benefits and Bonuses
Any limitations on how many bonus' we can pay out?
No
Statutory benefits and standard or commonly offered benefits
Maternity/Paternity Leave; Breavement Leave. Social charges include health insurance, pension.