An employment contract can either be valid indefinitely or concluded for a fixed term. For the employer, making an employment contract for a fixed term always requires a justified reason, such as needing a substitute worker or the seasonal nature of the work.

Pursuant to the law, an employment contract concluded for a fixed term without a justified reason shall be construed as being valid until further notice. At the request of the employee, the employment contract can always be concluded for a fixed term, and the contract is binding upon the employer and the employee.

An employment relationship for a fixed term is terminated as the agreed period comes to an end. An agreement that is valid indefinitely is terminated once the employer or employee has given notice and the period of notice has elapsed.

The preconditions for giving notice in an employment contract are the appropriateness and weightiness of the grounds for doing so. This requirement applies both to terminating an employment contract for reasons due to the employee and to terminating a contract for reasons to do with changes in the operational prerequisites of the employer.

An employment contract can only be cancelled for an extremely weighty reason. As such is considered for example such a serious breach or negligence of duties by one party that the other party cannot be expected to continue the employment relationship even for the period of notice. In case of a cancellation, the employment relationship ends immediately without a period of notice.