The employment contract is usually the first document signed by a newly recruited employee. It can make either a positive or negative impression on the employee. What should an employment contract contain? What form should it take? Does its volume matter?
In this article, we look at the forms of employment contracts, their key elements and practical tips for concluding them.
What should the employment contract contain?
Pursuant to Article 29 § 1 of the Labour Code, the employment contract specifies:
- parties to the agreement,
- the address of the employer’s registered office and, in the case of an employer who is a natural person without a registered office, the address of residence,
- type of contract,
- the date of its conclusion and
- working conditions and pay.
In addition, in the case of fixed-term and probationary contracts, the duration of the contract or the date on which it ends must be indicated in particular.
“Working conditions” are understood to include, inter alia, the type of work, the place or places where the work is carried out, the remuneration with an indication of its components, the working hours and the day the work starts.
When setting working conditions, it is important to bear in mind the principle of equal treatment and, in addition, the right to equal pay for equal work or work of equal value. This is particularly important in terms of minimising the risk of future discrimination claims by employees.
Form of employment contract
An employment contract shall be concluded in writing. However, if it is not concluded in writing, the employer shall confirm to the employee in writing the arrangements as to the parties to the contract, its nature and terms and conditions before the employee is allowed to work.
Does this mean that an employment contract entered into without written form is invalid? No, failure to observe the written form does not render the contract invalid.
In addition, it must be borne in mind that, according to Article 281 § 1(2) of the Labour Code, failure to confirm in writing an employment contract concluded with an employee before allowing him or her to work constitutes an offence against the employee’s rights punishable by a fine.
Volume of the employment contract – does it matter?
The law does not specify a minimum or maximum volume for an employment contract. In the labour market, there are both one-page employment contracts and those that can be as long as several dozen pages.
Does this mean that a short employment contract is inferior? No, an employment contract has relatively few mandatory elements and does not need to be long at all, but it should be tailored to the needs of the parties, the job position occupied by the employee, the working conditions of the employee and the possible legal and economic risks of the employment. The employment contract should certainly contain regulations “tailor-made” for the industry and the type of work.
What is worth bearing in mind?
In our employment law practice, the most common issues that bother employers are:
- Commencement date – if the commencement date is specified in the contract, the employment relationship is established on a specific date regardless of whether the employee commences work.
- Type of work – the parties may define the type of work in general terms, leaving it to the employer – within its managerial powers – to detail the scope of the employee’s duties, for example in the form of an annex to the employment contract.
- Working hours – the contract must specify the working hours. However, there is no obstacle to it also stipulating the organisation of work, i.e. the working time system or schedule.
- Place of work – must be linked to the type of work. Admittedly, the parties are free to determine the place of work and may shape it so that it covers a certain geographical area and not just a specific fixed point. However, it must always be borne in mind that the place of work specified in the employment contract must correspond to the employee’s actual place of work. The place of work is of particular importance in this regard, if only in the context of business travel.
- Employee remuneration – Employers should bear in mind the principle of non-discrimination when setting remuneration. For employees performing equal work, any differentiation in pay should be justified by objective reasons.
In summary, the employment contract is a key document at the start of any employment. While its form and volume may vary, it is important that it is clear and tailored to the needs of both parties. Attention to the details of the contract not only safeguards the employer’s rights, but also influences a positive relationship with employees, which is fundamental to an effective working relationship.
If you have any questions or concerns regarding this topic, we encourage you to contact our law firm.
Author:
Maria Aleksiejak, Trainee attorney-at-law (PL)
