Fixed-term employment contract

JUDr. Ondřej Preuss, Ph.D.
20. May 2025
8 minutes of reading
8 minutes of reading
Labour law

Temporary work can be a gateway to your dream job – but also a source of insecurity. What are the benefits and risks of such employment? And what does the so-called flexinovela, which will start in June 2025, bring? We look at the use of fixed-term contracts, their legal limits, exceptions and practical situations.

Boss interviewing future employee

What is a fixed-term employment relationship and when is it used

A fixed-term employment relationship means that the contract clearly states when the employment relationship will end. It is therefore a collaboration with a predetermined end. This form of employment is often advantageous for employers who only need to fill a position temporarily – perhaps for a project, a season or a short-term absence of a permanent employee. It can also be a way to test a new employee’s abilities over a longer time frame than the probationary period.

Employees, in turn, may see the fixed-term period as an opportunity. Many find their way into a new profession in this way, gaining experience or finding a short-term contract better suited to them for personal reasons – for example, while studying, looking after children or planning a change in life.

In some sectors, such as education, health, social services or culture, this type of contract is widespread. This is often due to the need to react flexibly to staff changes or seasonal fluctuations. They are also often encountered in non-profit organisations that operate on the basis of grants or project funding – and have no certainty that they will have a budget in future years. But fixed-term employment contracts have rules and limits that are good to know – we’ll cover those in the next sections of this article.

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Tip: Read about the advantages and disadvantages of a fixed-term contract.

What are the legal limits and the “3 times and enough” rule

The Labour Code clearly states that a fixed-term employment contract cannot be concluded indefinitely. In order to avoid chains of short-term contracts without security, there is a rule known as “3 times and enough”. What does this mean in practice?

A fixed-term contract can be agreed for a maximum of three years. If the employer and employee decide to extend their relationship, they can do so a maximum of twice. In other words, a total of three fixed-term contracts can be concluded in this way, and their cumulative duration cannot exceed nine years. Once this timeframe has been exhausted, the law does not allow further “fixed-term continuation” – the only legal way is through an open-ended contract.

Interestingly, the number includes resuming employment after a short break – so it is not enough to formally “quit for a while” and start again. The exception may be if at least three years pass between contracts – then the count is “reset” and you can start again from scratch.

This rule gives the employee greater certainty that the employer will not keep him or her in permanent limbo. At the same time, there are some exceptions, which we discuss below.

Whether your employer applies the rules of the Labour Code or has partially modified them, there is one pleasant consequence for you if you exceed the maximum permissible duration of a fixed-term contract (i.e. after a maximum of nine years). If you notify your employer in writing before the expiry of the agreed period that you insist that he continues to employ you, your employment relationship is deemed to be for an indefinite period. You will no longer be at risk of the expiry of the incorrectly agreed period.

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Exceptions to the rule: when a contract can be chained beyond the law

Although the law says “three times and enough”, there are situations where this restriction does not apply. The exceptions apply mainly to professions where the nature of the work makes it logical to have a repeated employment relationship for shorter periods – typically seasonal activities. For example, workers in vineyards, agriculture, ski lift operators or cultural and sports facilities where there is a need to reinforce the team only at certain times of the year.

In such cases, the employer may conclude fixed-term employment contracts more frequently and without limitation to three repetitions. However, the condition is that there is an objective reason why the job exists only on a seasonal or otherwise temporary basis. The employer must state this reason in the contract or internal regulations.

Another exception is agency employment. If you are an employee of a recruitment agency and commute to work for a so-called user, the three-contract rule does not apply to you.

But whether you fall within the exception or not, the following always applies: read the contract carefully, and if you are unsure whether your situation fits the law, it pays to consult a professional. An exemption is no excuse – and an improperly negotiated contract can have consequences.

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Tip: Have you been offered a job that will advance you financially and professionally? Have you found a job around the corner from where you live where you won’t have to commute an hour every day? Or are you just not getting along with your current boss anymore? All of these are valid reasons to quit. How do you go about getting everything done properly and without stress?

What flexinovela brings: new exemptions for parental crowds

From June 2025, the so-called flexinovela of the Labour Code will come into force, bringing significant changes for employers and employees – especially in the area of parental leave substitutes. In fact, the amendment introduces a new exception that will allow this “3 times and enough” rule to be broken.

If a company hires an employee as a replacement for a temporarily absent worker – typically someone on maternity, parental, paternity or so-called follow-up leave – it can enter into any number of fixed-term contracts. However, it remains the case that one such contract may not exceed three years and the total period of substitution may not exceed nine years.

In practice, this means that, for example, nine consecutive one-year contracts are possible – as long as the need to cover the absent employee continues. The aim of this change is to increase flexibility and respond to the fact that returns from parental leave often vary according to the families’ living situation.

The exemption also applies to contracts entered into before June 2025, as long as they continue beyond that date.

What to look out for when signing a fixed-term contract

It’s a good idea to be vigilant when signing a fixed-term contract. After all, this type of contract doesn’t automatically mean less value or “second league” – but it’s important to know what to look out for so you’re not surprised later.

Start with the duration – the contract must clearly state how long the employment relationship runs for. This can be a specific date (e.g. “until 31 December 2025”), a fixed term (e.g. “for one year”), or an event that is objectively ascertainable – typically “for the duration of Ms Novak’s parental leave”. Even if it is not known exactly when the employee will return, a contract worded in this way is valid as long as it is clear who the employee is and the reason for her absence. Conversely, a vague phrase such as “until needed” may be a problem.

Also ask why the contract is for a fixed term. For common positions without clear justification, it can be difficult to get an extension after a few months – and more difficult to assert your rights without knowing the context.

Also be careful how long the contract is. If you are approaching the third extension, the legal scope for further extensions is already narrowing.

The good news is that in terms of working conditions, as a fixed-term employee you are entitled to the same treatment as permanent employees, i.e. holiday pay, sick pay, fringe benefits and company benefits. So in theory there is no difference. However, in practice, there may be situations where an employer does not offer the same benefits to temporary workers – for example, they may be reluctant to award bonuses, performance awards or invest in their development if they know they are leaving in a few months. It is not a breach of the law if such benefits are not guaranteed by contract or internal regulations, but it is a good idea to talk openly about these matters at the outset.

Also read the “fine print” – that is, other provisions such as probationary periods, notice periods or specific entitlements. And if you’re unsure about anything, you should consult a professional. A fixed-term contract can be advantageous – as long as you know exactly what you’re signing.

Summary

Fixed-term contracts can be a practical solution for both employers and employees – they bring flexibility but also require vigilance. The legal framework clearly defines how often and for how long such a contract can be entered into, protecting employees from the uncertainty of endless extensions. The new rules, which introduce flexitime from June 2025, bring additional exemptions, especially for cases where colleagues are replacing colleagues on parental leave. However, even in these cases, a well-informed employee holds more control over their working future. So before you sign, it pays to know what your options are – and when your employer is obliged to offer you more security in the form of a permanent contract.

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Work contract

It’s not easy to hire someone. Employment law can be complex and sometimes a small deviation from it can cause big problems later. We can help you navigate them and set up employment documents in accordance with the law.

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Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

Education
  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

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