A fixed-term employment contract is an agreement between an employer and an employee concluded for a specific period. According to the Organic Law of Georgia, the "Labor Code," concluding a fixed-term contract is permissible only in exceptional cases strictly defined by law. This type of contract is often used for temporary projects, seasonal work, or replacing a temporarily absent employee. It is crucial for employers to know that a fixed-term contract concluded for more than 30 months (or extended twice consecutively) automatically transforms into an indefinite-term contract. Violation of this rule often becomes the basis for labor disputes.
Properly drafting a fixed-term contract is critical for both the employer and the employee. The employer must precisely justify the basis for the term limitation in the contract (e.g., temporary increase in work volume); otherwise, the court may deem it indefinite. For the employee, it is important to know their rights after the term expires and whether they are entitled to compensation or leave. Specialists registered on Legal.ge offer qualified assistance in preparing fixed-term contracts, helping you avoid legal risks and misunderstandings.
What does the Fixed-Term Contracts service cover?
- Identifying Legal Grounds: Analysis of whether the employer has the right to conclude a fixed-term contract for a specific position in accordance with Article 6 of the Labor Code.
- Drafting Contract Text: Preparing a detailed contract specifying the term, job description, remuneration, and conditions for expiration.
- Renewal Regulations: Consulting on rules for contract extension (prolongation) to prevent its inadvertent transformation into an indefinite contract.
- Seasonal Work Specifics: Addressing the peculiarities of seasonal employment (e.g., agriculture, tourism) in the contract.
- Replacing Absent Employees: Correctly formalizing contracts with substitutes for employees on maternity or sick leave.
- Termination Procedures: Preparing documentation (order, notice) for contract termination due to expiration of the term.
Common scenarios requiring this service
One of the most common scenarios involves a construction company needing workforce to complete a specific project within 6 months. Here, it is essential to specify the project and its estimated completion date in the contract. Another scenario is a hotel hiring additional staff during the summer season. A third case involves a company where an employee has gone on maternity leave, and another person is hired temporarily to replace them. In all these cases, using a standard indefinite contract is inappropriate and can lead to problems when dismissing the employee once the temporary need has passed.
Georgian Legal Framework
Fixed-term labor relations are regulated by Articles 6 and 12 of the Organic Law of Georgia "Labor Code of Georgia". The law states that an employment contract is concluded for an indefinite term, except when: a specific volume of work is to be performed; the work is seasonal; the volume of work temporarily increases; a temporarily absent employee is being replaced; or other objective circumstances exist. If an employment contract is concluded for more than 30 months, or if a fixed-term contract is concluded 2 or more times consecutively and its duration exceeds 30 months, it is considered to be an indefinite employment contract.
Step-by-step service process
The process begins with an audit of the employer's needs: why do they want a fixed-term contract? The lawyer checks if this reason fits the statutory list. Then, a draft contract is prepared, clearly stating the term (a specific date or the occurrence of an event). After signing, the lawyer advises on deadline management so the employer does not miss the notice period or exceed the 30-month limit if an indefinite relationship is not intended.
Why choose a specialist on Legal.ge?
An incorrectly drafted fixed-term contract is a "mine" that can explode at any time in the form of a lawsuit. On Legal.ge, you will find labor law experts who will help you balance business flexibility with employee rights, in full compliance with the law.
Updated: ...