Definite Term Agreements

As already mentioned, employers and employees can conclude one of two types of contracts: (1) a fixed-term contract or (2) a contract of indefinite duration: a PKWT based on the completion of the work must be based on the agreement of the employer and the employee under the PKWT. Such an agreement includes the scope and limitation of the completion of the work and the period of completion of the work. A PKWT based on the completion of works that end before the agreed period is considered completed by law and ends on the day of completion of the work. 7) If a term is defined, do not repeat part of its definition in relation to the use of the defined term. GR 35 also allows certain works, the period and volume of which as well as the payment may change depending on the attendance. This type of CAR can only take place within the framework of a part-time employment contract. If an employee works under this type of PKWT 21 (twenty-one) days or more per month for 3 (three) consecutive months or more, this PKWT is automatically converted into an employment contract of indefinite duration (Perjanjian Kerja Waktu Tidak Tertentu or a “PKWTT”). A long series of fixed-term contracts without interruption and without any real change in duties from one to the other can create a presumption of long-term uninterrupted employment that will be difficult to refute. Be sure to keep and keep records to back up the above factors as well as any other relevant factors. For example, do not refer to the “Board of Directors of the Company” in the contractual provisions if the “Board of Directors” is already defined as the “Board of Directors of the Company”.

If such a misused term were replaced, the result would be “the board of directors of the company of the company.” In other words, the principle of replacing a definition with the defined term must be strictly applied. In the event of termination of the employment relationship, an employer pays severance pay to dismissed employees in accordance with the Labour Code, employment contracts, company regulations or collective agreements. Severance severance pay consists of severance pay, salary and compensation (collectively, “severance pay”). According to the Labour Code and GR 35, the benefits at the end of the employment relationship consist of the following elements: The definition of the employment contract for a certain period is regulated in article 11 of the Labour Code as follows: “An employment contract for a certain period is an employment contract concluded in writing between the employer and the employee, which has a certain duration or which is based on the emergence of objective conditions such as the completion of a certain work or the realization of a certain event. An employment contract of a certain duration cannot be concluded more than once, unless there is a substantial reason that may require repeated (chain) contracts. Otherwise, the employment contract is deemed to have been concluded for an indefinite period from the outset. Provided that it is clearly provided that, although the employment relationship is essentially concluded in employment contracts of indefinite duration, the employment relationship may be concluded for a certain period if there are reasons such as the occurrence of a particular case and objective conditions, the employment contract may be renewed no more than once for a certain period, by maintaining the same conditions that make it valid. Otherwise, the employment contract will be taken into account from the outset, as it will be concluded indefinitely. In the case of an extension of the employment contract for a certain period of time more than once, there is a “substantial reason”. Any dispute relating to this Agreement or any other agreement arising out of this Agreement shall be finally resolved in accordance with the Arbitration Rules of the Netherlands Arbitration Institute.

Fixed-term employment contracts may not be renewed more than three times for a total period not exceeding two years. [4] Contrary to the conditions laid down by labour law, the employment contract is considered to be an employment contract of a certain duration, assuming that the contract is no longer valid if there is no objective condition, if the time is not clearly indicated or is not unforeseen, if the contract is not concluded in writing, if the employee is not informed of the employment contract, which is concluded for a certain period of time, and there is no definition of employment with the employee in the contract. When using a fixed-term employment contract, employers can theoretically prevent the employee from receiving a salary notification instead of the employee. The idea is that the employee already knows the end date of his employment and can control his actions accordingly. An employment relationship between an outsourcing company and an employee is based on a written employment contract (i.e. a specific or indefinite duration). The rights of the employee in an outsourcing employment contract must be protected and the responsibility of the outsourcing company (not of another company). A fixed-term contract is a contract of a defined duration with a defined end date. Often, a fixed-term contract provides for termination before the end of the period, and as long as it complies with the relevant legislation on labour standards, the contract can be terminated earlier by complying with these conditions. Otherwise, if the contract is terminated before the end of its term, there are two possible outcomes that may force the employer to pay the contract before the end of the period or not.

In one scenario, any payment made by the employer up to the end date is subject to the employee`s mitigation obligation, and in the other case, there is no such obligation. Which of them applies depends on the terms of the contract themselves. Often, futures contracts are paid contracts, which means that no mitigation is required. 5) Create a single defined term for each definition and never use a synonym where the defined concept, word or phrase should apply. (1) Defined terms and definitions shall be used to facilitate the interpretation of a contract: they make the provisions of the treaty concise; the use of defined terms should reduce the risk of ambiguity at all times. In another example, do not refer to both “product” and “televisions” if both are defined as “televisions as defined in Schedule 1”. If a defined term comes from another (related) contract or document and refers to exactly the same definition in another (related) contract or document, you are referring to that agreement or document (“Televisions as defined in the Distribution Agreement”); You should not repeat such a definition. If employees continue to work beyond the end date of a fixed-term contract without a formal extension, this will be considered an implied term extension agreement. If the employment lasts at least four years, a fixed-term worker automatically becomes a permanent employee (subject to collective agreements or a good business reason that prevents it). Overtime requires the prior consent of the employee. As a rule, this consent is included in employment contracts.

However, Gr 35 seems to indicate that consent is required whenever an employee has to work overtime. The benefits of fixed-term contracts include greater flexibility for employers and employees and the ability for a company to control budgets based on its staffing needs. The rules on remuneration for dismissal, severance pay and job security of employment contracts for a certain period of time are as follows: Since fixed-term employment contracts are contracts in which the fixed-term nature of the work is specified, there is no “notice period”. In this regard, it will also be considered invalid if the contract opposes it. However, severance pay must be paid to an employee who meets the conditions of severance pay that meet the one-year condition and the eligibility requirements for severance pay. Employment contracts of a certain duration do not give entitlement to job security or the right to re-employment. There is no job security in these contracts due to the assumption that the employer provides job security during the contract, the contractual provision must be interpreted by replacing the defined term with the definition. . . . .