In 2015, many changes will take place in labor law: the Work in Certainty Act will be phased in from January 1, 2015. One of the goals of this amended legislation is, among other things, to give employees a permanent contract more quickly.
As of January 1, 2015, several new restrictions will mainly be imposed on fixed-term employment contracts:
Announcement obligation
At least one month before the end of the contract, the employer must inform the employee whether the contract will be renewed. This applies to all employment contracts that have been entered into for 6 months or longer. The employer must also inform under what conditions the renewal will take place.
If an employer is late with notification, they must pay a fine equal to the period they are late, with a maximum of one month’s salary.
Probation period
No probationary period may be included in contracts shorter than 6 months. Furthermore, the rules for the probationary period remain the same:
For contracts longer than 6 months but shorter than 2 years, you may agree on a probation period of one month. For contracts longer than 2 years and for indefinite periods, the probation period may be a maximum of 2 months.
Non-compete clause
In fixed-term employment contracts concluded on or after January 1, 2015, no non-compete clause may be included, unless the clause is necessary due to overriding business or service interests. In that case, the employer must provide a written justification specifying the interests involved and explaining why these interests require a non-compete clause. It must pertain to specific tasks or functions such that the disadvantage to the employee from this clause does not outweigh the employer’s protection. This must apply both at the time the employment contract is concluded and at the time the employer invokes the clause. Non-compete clauses that were entered into before January 1, 2015, remain valid.
