According to the law, all legal relations arising between an employer and an employee are formalized. An employment contract is intended for this purpose, which stipulates the basic conditions of the performer’s future activities regarding the position, place of work and the period for which he is involved in work.
If the working period is not specified, then the employment contract is qualified as open-ended or concluded for an indefinite period. This is the main difference between an employment contract for an indefinite period and a fixed-term one, under which the duration of maximum employment does not exceed 5 years.
Advantages of an open-ended contract
When applying for employment, a potential employee will make his choice in favor of an employer offering conditions for an indefinite duration of the employment contract. This condition provides guarantees of protection against unfair actions of the employer.
An employment contract with an indefinite duration has significant advantages for the job seeker:
- the ability to confidently plan your expenses, having a constant income in the form of a stable salary and a position included in the staffing table,
- a complicated procedure for dismissing an employee at the initiative of the employer,
- Permanent employees can receive additional bonuses from the employer in the form of a voluntary health insurance policy, bonuses, and participation in social programs.
The most important points specified in the relevant agreement include:
- labor function,
- position according to the staffing table,
- terms of reference, duties and rights of the parties,
- employee remuneration, possible incentive or compensation payments.
In addition to the main aspects of future work, the employment contract may include additional clauses on continuous improvement of skills, payment for the relocation of the employee to the place where work duties are performed, payment for travel from the place of work to home, and others.
Contract for an Indefinite Term Advantages and Disadvantages
4. Social insurance
. In accordance with current legislation, all persons working under an employment contract are subject to compulsory social insurance in case of temporary disability and in connection with maternity. The employer pays insurance contributions for the employee to the Social Insurance Fund of the Russian Federation, and the employee receives the right to temporary disability benefits (sick leave) and maternity benefits (maternity, child care). The employee is also subject to compulsory insurance against industrial accidents and occupational diseases. If an employee receives any injury during work, he has the right to insurance payments provided for by the Federal Law “On Compulsory Social Insurance against Industrial Accidents and Occupational Diseases.”
2. Regular salary
. In labor relations, it is not the result that is paid, but the process of work: it is presumed that if an employee goes to work, then he is fulfilling his labor function and his work is subject to mandatory payment. Wages must be paid to the employee at least every half month (Article 136 of the Labor Code of the Russian Federation). In case of delay in payment of wages for a period of more than 15 days, the employee has the right, by notifying the employer in writing, to suspend work for the entire period until the delayed amount is paid (Article 142 of the Labor Code of the Russian Federation). The terms of remuneration are mandatory for inclusion in the employment contract. That is, a translator working under an employment contract receives a regular salary every month, and in total at the end of the year his income may exceed the fee of a translator working under a civil contract, who may not find orders for himself.
Flaws
When drawing up employment contracts, both fixed-term and open-ended, it is important to ensure their compliance with the Labor Code of the Russian Federation, otherwise the contracts are considered invalid. Prescribing additional conditions in the contract aimed at simplifying the dismissal of an employee by decision of the employer is illegal.
The disadvantages of an employment contract for an indefinite period include:
- the need to comply with the company’s internal regulations and rules,
- possible completion of a probationary period,
- When dismissing an employee who has signed an employment contract for an indefinite period, the employer will most likely require him to work for 2 weeks until he has time to find a worthy replacement for the resigning employee.
As a rule, the conclusion of an employment contract for an indefinite period is provided for in cases where a vacant position is included in the company’s staffing table and the employee’s constant performance of labor functions is required. Employment contracts should be concluded for an indefinite period, except for the cases described in Article 59 of the Labor Code of the Russian Federation.
The sample employment contract for an indefinite period does not contain a separate clause regarding the period of employment.
What are the advantages of a fixed-term employment contract for an employer?
I am interested in the question - what are the specific advantages of a fixed-term employment contract for the employer? What are the conditions when dismissing an employee under this agreement? What are we obliged to provide to the employee? I would like to write in the basis for concluding a fixed-term employment contract - the implementation of internship and professional training for the employee. Is this correct? If there is an inspection, what supporting documents may be required?
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The law allows the conclusion of a fixed-term employment contract in two cases: the first - when the employment relationship cannot be established for an indefinite period, taking into account the nature of the work to be done or the conditions for its implementation, and the second case - when a fixed-term employment contract is concluded by agreement of the parties without taking into account the nature of the work to be done and the conditions its implementation with the following categories of workers.
Procedure for terminating an employment contract
Termination of an employment contract with an indefinite duration is possible by decision of the employee or employer. To terminate an employment contract for an indefinite period, the employer must present compelling circumstances such as:
- staff reduction,
- inadequacy for the position held,
- violation of labor discipline by an employee,
- failure to appear within 7 days after signing an open-ended employment contract without reasonable grounds.
To terminate an employee’s employment, it is sufficient to notify the employer in writing several days in advance of the upcoming termination of an employment contract concluded for an indefinite period.
Reclassification or recognition of fixed-term contracts as employment contracts concluded for an indefinite period is carried out if, after the expiration of the period specified in the fixed-term contract, the employee performs official duties and neither party notified each other of the termination of the legal relationship. In this case, it is necessary to renew the open-ended contract.
Re-qualification of contracts can also occur in court at the request of the employee, if the contract on a fixed-term basis was concluded to evade the rights and guarantees provided for full-time employees. The basis for recharacterization of a contract may be Article 58 of the Labor Code of the Russian Federation, according to which the absence of compelling reasons for concluding a fixed-term employment agreement is a reason for re-registering them as contracts of an open-ended nature.
Contract for an Indefinite Term Advantages and Disadvantages
The expiration date of a contract concluded for a certain period can be indicated by a specific date (the contract is concluded for a period from _______________ to "___" _____________ 20__) or the expiration of a certain period (the contract comes into force on _________________________ and is valid for ___ days (months, years) ).
That is, we conclude an agreement today, but it stipulates that everything that happened (figuratively speaking) yesterday and the day before yesterday is regulated by the same agreement. It’s very convenient for those in a hurry (the business is on fire, but they’re putting up with paperwork) and slobs (they’ve already done something, but they’re too lazy to draw up an agreement).
Employment contract with the director
The difference between concluding an employment contract with a director and employing other specialists is in determining the type of contract: fixed-term or for an indefinite period. As a rule, if the company’s charter specifies the period of validity of the director of the company, then a fixed-term contract should be drawn up for the corresponding period.
If the company’s constituent documents do not specify the term of office of the manager, then the employment contract may be of an unlimited duration. In addition, there is the possibility of concluding fixed-term agreements with managers by agreement of the parties.
At the end of the period specified in the fixed-term contract, one of the parties must declare its intention to terminate the employment relationship. Otherwise, the employment contract is considered concluded for an indefinite period.
Lease agreement for an indefinite period: advantages and disadvantages
6.2. If one of the parties evades concluding the main agreement (clause 1.1) provided for in this Agreement, the evading party will have to compensate the bona fide party for losses caused by such evasion. In addition to damages, the evading party must pay the bona fide party a fine in the amount of _____ (__________).
The rental agreement must be accompanied by
technical passport of the building or explication which also contains all the data about the transferred premises. These documents contain all the characteristics of the transferred premises (area, number of rooms, location of stairs, doors, windows, etc.), as well as its schematic layout. If the premises being leased consists of more than one premises, and also if some of the premises being leased are main and some are auxiliary, a plan diagram of the premises should be drawn up as an appendix to the contract indicating all these details and certified by the signature and seal of the lessor .
Contracts and open-ended employment agreements
The contract, being a type of fixed-term employment contract, is concluded for a specified period. In other words, already at the conclusion, the employer and employee can assume the likely termination of the contract at the end of its term. This puts the employee in a dependent position: the employer has the right to terminate the employment relationship upon expiration of the contract, with some exceptions, without any special reasons or conditions. However, such a seemingly advantage for the employer entails the need for additional actions on his part (for example, notifying the employee at least one month in advance).
Thus, the minimum period for which a contract is concluded is one year. Concluding a contract with an employee for a shorter period is unlawful, is a violation of the deadlines established by law, and the expiration of such a contract does not serve as grounds for termination of the employment relationship. If an employee is dismissed due to the expiration of a contract concluded for a period of less than one year, then if there is a legal dispute, he is subject to reinstatement.
16 Mar 2021 uristlaw 192
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How to register an Indefinite Validity Agreement
The exact definition of an employment contract is given in Article 56 of the Labor Code of the Russian Federation. It refers to an agreement under which an employer provides a citizen with work. The person is obliged to personally perform labor duties, and the employer is obliged to pay wages for this.
The contract must include the start date of work. From this moment, wages are calculated and local regulations come into force, which the citizen must comply with. It is recommended to indicate in the text that the agreement is of an indefinite nature.
In what cases is an open-ended contract concluded? (read more…)
