Fixed-term employment contracts are terminated at the end of the fixed period or on completion of the agreed work. If the date of the termination of the employment contract is known only by the employer, the employer shall inform the employee of the termination of the employment contract without delay, as soon as it learns the date concerned.
A fixed-term employment contract is binding for both parties until the end of the fixed period. Thus, a fixed-term employment contract cannot be terminated during the period. However, the contract may be complemented by a termination clause which allows termination during the fixed period. If the employer terminates the contract it has to provide grounds for termination.
However, parties to the employment contract may jointly agree to terminate a fixed-term employment contract. It can also be terminated before the end of the fixed period by cancelling the employment contract on grounds stipulated by the Employment Contracts Act.
An employment contract concluded for longer than five years may, when five years have elapsed from the conclusion of the contract, be terminated on the same grounds and using the same procedure as an employment contract concluded for an indefinite period.