Changes to employment contracts from January 2023

Changes in Labour Law

Starting from the beginning of next year, the amended provisions of the Labour Code will come into force. The changes arise from the need to implement the provisions of Directive (EU) 2019/1152 of the European Parliament and of the Council of 20 June 2019 on transparent and predictable working conditions in the European Union. The amendment introduces modifications, among others, in the area of concluding employment contracts for a probationary period and introduces new rights for employees. We also remind you of other changes resulting from the partial implementation of the Directive, expanding employees’ rights to more comprehensive and updated information about their employment conditions.

Employment Contract for a Probationary Period

The amendment does not change the maximum duration for which a probationary contract can be concluded. It still cannot exceed 3 months. However, from next year the Labour Code will provide an exception to the 3-month probationary period whereby the parties may agree in the employment contract that the probationary period is extended by the duration of any leave, as well as other justified employee absences from work, should such absences occur.

The proposed provision results from Article 8(3) of Directive 2019/1152, according to which where an employee was absent from work during the probationary period, Member States may provide that the probationary period can be extended depending on the length of that absence. The Directive states that “there should also be the possibility for probationary periods to be extended appropriately, for example, where the employee was absent during the probationary period due to illness or leave, so that the employer has the opportunity to assess whether the employee is suitable for the job” and “in the case of fixed-term contracts of less than 12 months, Member States should ensure that the length of the probationary period is appropriate and proportionate to the expected duration of the contract and the nature of the work.”

Subject to the above, the Directive requires Member States to ensure that, for fixed-term employment contracts, the length of the probationary period is proportionate to the expected duration of the contract and the nature of the work. The probationary contract shall be concluded for a period not exceeding:

1) 1 month – in the case of a fixed-term contract intended to last less than 6 months;

2) 2 months – in the case of a fixed-term contract intended to last at least 6 months but less than 12 months.

Additionally, the parties may extend these periods in the contract by no more than 1 month, if justified by the type of work (amended Article 25 § 23 of the Labour Code).

Subsequent Contracts with the Same Employee

Article 8(2) (second sentence) of Directive 2019/1152 provides that in the case of concluding a new contract for the same position and involving the same duties and tasks, the employment relationship may not be subject to a new probationary period. To align the wording of the existing provisions with this regulation, the wording of Article 25 § 3 of the Labour Code must be amended. Currently, it allows concluding a probationary contract again with the same employee after at least 3 years have passed since termination or expiry of the previous contract, if the employee is to be employed for the same type of work. In such a case, only one repeated probationary contract is permitted. According to the new provisions, concluding a probationary contract again with the same employee will only be possible if the employee is to be employed to perform a different type of work.

Employment Contract 2022/2023 – New Information Obligations

We remind you that since August this year, pursuant to the amended Article 29 of the Labour Code, an employment contract must specify the parties to the contract, the employer’s registered office, or if the employer is a natural person without a registered office – their residential address, as well as the type of contract, the date of its conclusion, and the working and pay conditions, in particular:

1. the type of work;
2. the place or places where the work is to be performed;
3. the remuneration corresponding to the type of work, with an indication of the components of the remuneration;
4. the working time;
5. the start date of work;
6. in the case of a probationary contract – its duration or end date and, if agreed by the parties, a provision concerning the possibility of extending the contract by the duration of leave, as well as by other justified absences of the employee from work, should such absences occur; the period for which the parties intend to conclude a fixed-term contract if such contract is to be for less than 12 months; or a provision on extending the contract by no more than 1 month if justified by the type of work;
7. in the case of a fixed-term contract – its duration or end date.

The information on these essential aspects of the employment relationship must be provided as part of concluding the employment contract itself, which is consistent with the requirement set out in Article 5(1) of Directive 2019/1152, which requires that the information listed above be communicated during the period starting from the first day of work and ending no later than the seventh calendar day.