Implementation of the Work-Life Balance Directive – Changes to Employment Contracts

The implementation of the Work-Life Balance Directive entails a number of changes to employee’s rights. Undoubtedly, the plane for which the implementation of the provisions will have the greatest practical importance is employment contracts.

1. Mandatory justification of termination of fixed-term contracts

Under the amended provisions the employer’s obligation to indicate the reason for termination of an employment contract will apply to all employment contracts – also those concluded for a fixed term. 

The above change means that the termination notice given by the employer will have to state the reason for termination – failure to do so will result in the termination being defective, and the employee will be able to effectively appeal to the labour court.

In addition, the reason for termination will have to justify the termination – the question of the proper justification for the dismissal will be subject to examination in the same way as for indefinite contracts, meaning that the employer will only be able to dismiss a fixed-term employee if there are specific and genuine reasons. The legitimacy of the termination, on the other hand, will be verifiable by the labour court, which will either award compensation to the employee or reinstatement (which will be rather rare) if it finds that the termination was unjustified.

A formal requirement for the termination of a fixed-term contract will also be the need to consult the trade unions, if any, about the intention to dismiss the employee.

2. Probationary Period contracts

The maximum trial period will not change – it will be three months.

However, the duration of a specific probationary employment contract will need to be adjusted in line with the intended period of employment at the end of the probationary period. If the employer assumes to employ the employee for less than six months after the probationary period, the probationary contract may not last longer than one month; if the period of employment is to be longer than six months and shorter than 12 months, the probationary period may be two months.

The extension of the probationary period will be allowed for a maximum of one month by agreement of the parties. In addition, the parties will be able to agree to extend the probationary period contract by the duration of a holiday or other excused absence.

3. Information on the terms and conditions of employment

The scope of information to be provided by the employer to the employee in connection with the conclusion of the employment contract – including in relation to an employee sent to work in EU or third countries and posted – is significantly expanded, e.g. information on the right to training or the length of paid leave. HR departments should familiarise themselves in detail with the new wording of Articles 29 and 291 of the Labour Code, which detail the scope of the information obligation.

4. Several employment relationships

An employer will not be able to prohibit an employee from remaining in an employment relationship based on an employment contract or civil law contracts and providing work for other entities unless the parties enter into a non-competition agreement. Dismissal of the employee for this reason will render the termination of the employment contract ineffective.

5. Request for a change in terms and conditions of employment

An employee employed for a fixed term of more than six months will be able to apply to the employer for an indefinite contract or for a change in the terms and conditions of employment, e.g. to full-time employment or a change in the type of work performed.

The request will be able to be made once a year and the employer will be required to justify the reason for refusing the request. There will be no negative consequences for the employee if the request is made. In particular, the possibility of the employer terminating the employment contract for this reason will be excluded.

The provisions amending the Labour Code came into force on 26 April 2023.