Ending fixed-term employment
Introduction to ending fixed-term contracts
As a general rule, fixed-term employment cannot be terminated prematurely. However, if there is a termination clause in the employment contract, the employment can be terminated, but even then, objective reasons are required, in the same way as for permanent employment. The process must also be handled in accordance with the applicable rules for negotiation, for example under the Co-determination Act (MBL). The employer and the employee agree to terminate a fixed-term employment early. Such an agreement can be made through a voluntary agreement, where both parties agree on the conditions under which the employment will end. It is important that such agreements are made in writing to avoid future disputes.
Notify that special fixed-term, seasonal or temporary contracts will not be renewed
If a fixed-term contract is not to be renewed, the employer is obliged to give notice at least one month before the contract ends, if the following conditions are met
- the worker has been employed for more than 12 months in the last three years, or
- The worker has had a special fixed-term contract for more than 9 months in the last three years.
If the duration of the employment is shorter than these periods, the employee must be informed of the end date of the employment already at the beginning of the employment. The notice must be in writing and contain the necessary information. An employee who receives such a notice is entitled to reasonable leave with benefits to seek new employment.
Consequences of non-notification
If the employer fails to give such notice in time, it may lead to legal consequences. The employee may be entitled to damages. If the employee continues to work for the company without a contract after the period has expired, there is a high risk that the employment relationship will be considered to be of indefinite duration.
Applicable legislation
15-17§ LAS
15 § An employee who is employed for a limited period of time in accordance with Section 5 and who will not be given continued employment when the employment ends shall be notified of this by the employer at least one month before the end of the employment period. However, a prerequisite for the right to such notification is that the employee, when the employment ends, has been employed by the employer for a total of more than twelve months during the past three years or for a total of more than nine months in special fixed-term employment during the past three years. If the period of employment is so short that the notice cannot be given one month in advance, the notice shall instead be given when the employment begins.
If a seasonal worker who, at the time of termination of employment, has been employed by the employer on a seasonal basis for more than six months in the preceding two years, will not be reinstated on a seasonal basis at the beginning of the new season, the employer shall inform the worker of this at least one month before the beginning of the new season. Law (2022:835).
16 § Notification under section 15 shall be in writing.
In the notice, the employer shall state what the employee shall observe in the event that the employee wishes to bring an action for the employment contract to be declared valid until further notice or claim damages for breach of Section 4, first paragraph. The notice shall also state whether or not the employee has a preferential right to re-employment. If the employee has a right of priority and notification is required for the right of priority to be asserted, this shall also be stated.
The notice shall be delivered to the employee in person. If it is not reasonable to require this, the notice may instead be sent by registered letter to the employee's last known address.
17 § An employee who has been notified in accordance with section 15, first paragraph, is entitled to reasonable leave from employment with retained employment benefits to visit the employment service or otherwise seek work.