2009 Changes to principles of concluding agreements for definite time period

On 22 August 2009 Act of 1 July 2009 about easing the negative consequences of the economic crisis for employees and entrepreneurs is coming into force (Journal of Law No. 125, item 1035). The Act regulates the principles of support for entrepreneurs in financial troubles in the form of benefits in cash from Guarantee Employee Benefit Fund. The regulations of the Act are applicable to entrepreneurs in the light of the Act about freedom of economic activity, however, only those who meet conditions stipulated in article 3 of “anti-crisis act”. Among the conditions are: lower economic turnover, understood as sale, however not lower than 25% calculated quantitatively or in terms of value during 3 consecutive months after 1 July 2008 in comparison with the same 3 months of time period between 1 July 2007 till 30 June 2008 as well not falling in arrears with taxes, social, health insurance premium and contributions for Guarantee Employee Benefit Fund and Labor Fund (with exceptions stipulated in article 3, section 1, paragraph 2 a and b).

Above-mentioned Act introduces new solutions in the scope of employees’ rights, like changes to principles of concluding agreements for definite period of time. According to the provisions of currently effective law and article 25 of Labor Code, concluding consecutive work agreement for definite period of time means concluding the work agreement for indefinite period of time if earlier parties had concluded two agreements for consecutive periods of time on condition that break between expiration of one and concluding a new agreement is not longer than a month. According to article 35 of “anti-crisis” Act to the work agreements valid on a day of new Act coming into force article 25 of Labor Code are not applicable. The only limitation introduces article 13 of the Act according to which time period of work agreements for definite period of time (concluded 3 months before the termination or expiry of the preceding agreement) cannot exceed 24 months, irrespective of the number of agreements. If the expiry date of the agreement concluded for definite period of time and before the Act is in force falls after 31 December 2011 the agreement expires after time period for which it had been concluded for.

According to article 35, section 2 of the Act article 25 of Labor code shall be applicable to work agreements concluded for definite period of time and binding on 1 January 2012

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