The Labor Code recognizes only two types of contracts based on duration: the open-ended contract and the fixed-term contract. The general rule is that a contract is entered into for an indefinite period, whereas a fixed term requires an objective reason related to the temporary nature of the job. Other formats often heard, such as seasonal contracts or part-time contracts, are not separate types but rather ways of organizing within one of the two main categories.
This page shows how the two differ when a specified term automatically becomes an open-ended term and which forms of work are regulated separately.
Read also: Employment Contract: The Complete Guide
Article 140 states explicitly: The employment contract is entered into for an indefinite period. A fixed-term contract must be justified by objective reasons related to the temporary nature of the position.
| Type | How does it end? | Article |
|---|---|---|
| Unlimited duration | With a one-party solution and after the notice period has expired. | one hundred forty and one hundred forty-one |
| Deadline set | At the end of the deadline, without any prior solution. | one hundred forty and one hundred forty-nine |
Replacing an employee on maternity leave. A fixed-term project. The tourist season. A temporary increase in workload. In each case, the reason is written into the contract, because that's what gets checked later.
The desire to see the employee for a year before confirming them. That's what the probationary period is for. A fixed-term contract is not used as an extended trial.
Failure to comply with this provision does not affect the validity of the contract but gives rise to the employer's liability as set forth in paragraph 2 of Article 202 of this Code.
Source: Labor Code, Article 140(2)
This means that the contract remains valid, but the employer is liable. The measure under Article 202(2) goes up to thirty times the monthly minimum wage, i.e., up to 1,500,000 LEK with a minimum wage of 50,000 LEK.
Read also: The twelve elements that every contract must contain.
There are two paths, and both occur without any action from the parties.
Article 149 states that when, after the expiration of the term, the contract is tacitly renewed, it is considered an open-ended contract. It is sufficient for the employee to continue coming to work and to be paid.
Article 151 goes further. When successive fixed-term contracts of at least three years have been entered into between the same parties, the employer's failure to renew the last one is deemed to be the termination of an open-ended contract.
Short interruptions do not interrupt the calculation. Contracts are considered consecutive even if there is an interruption of no more than three months between them.
An employee was kept on four consecutive one-year contracts, each with a two-month break in between. In the fourth year, the employer simply did not renew it. The two-month interruptions did not interrupt the calculation, so the case is treated as the termination of an indefinite contract, with notice period, severance pay, and potential liability for damages.
When the contract is entered into for more than three to five years, the employee may terminate it after three years, with two months' notice. When it is entered into for more than five years, the employee may terminate it after five years, with three months' notice.
Read also: Notice periods by years of service
For an open-ended contract, Article 142 sets the probationary period as the first three months of employment. For a fixed-term contract, Article 150 requires that the probationary period be specified in writing and not exceed three months.
In both cases, the notice period during the trial is five days. And in both cases, the trial cannot be scheduled when the parties have previously had a contract for the same work.
Read also: The trial period: what is allowed and what is not
These are not types of contracts, but ways of performing work. Each can be for a fixed term or an indefinite term.
Article 14. The employee works by the hour, half-day, or workday, with a weekly duration shorter than that of full-time employees. He enjoys the same rights, and when conditions are directly related to working time, the rights are proportional.
The employer has an obligation to provide information in both directions. They must inform part-time employees about available full-time positions, and vice versa.
Article 15. The employer provides the computer equipment, unless the employee uses their own. The conditions may not be less favorable than those of working on the employer's premises. The employer takes measures to ensure that the employee is not isolated.
The provisions for weekly hours, overtime, public holidays, and night work do not apply to telework, because the employee sets their own schedule.
Article 17. The master teacher qualifies the student, and the student works in his service to become qualified. The provisions of the Code also apply to this contract.
Articles 18/1 through 18/5. The employee enters into a contract with the agency and works for a host enterprise. The same work at the same host enterprise does not exceed two years. When the employee is on an open-ended contract and is not assigned, they are paid at least 50 percent of the base salary if they have at least four months of work within six months.
Caution: Seasonal work is not a legal category. It is a fixed-term contract, where the objective reason is the season. When it is repeated year after year with the same person, it counts under Article 151 and after three years is treated as an open-ended contract.
Read also: When the relationship is not employment at all
Article 149(2) explicitly prohibits it. Employees on fixed-term contracts may not be treated less favorably than those on indefinite contracts with respect to working conditions, training, and career opportunities.
Article 149(1) adds an information obligation. The employer informs the employee of fixed-term vacancies and provides equal opportunities for employment on an indefinite basis.
The seniority award is not lost. Article 152 states that upon the termination of relationships that have lasted no less than three years, the employee receives a seniority award as in an indefinite contract.
Read also: How much does an employee cost, including contributions and the ceiling?
Two types based on duration: open-ended and fixed-term. The default is open-ended, whereas a fixed term requires objective reasons related to the temporary nature of the position.
The contract remains valid, but the employer's liability under Article 202, paragraph 2, is limited to thirty times the monthly minimum wage.
When it is tacitly extended after the term has expired, or when successive contracts have lasted at least three years and the employer does not renew the most recent one.
No, when the interruption is no more than three months. In that case, the contracts are considered consecutive.
No. It's a fixed-term contract, where the season serves as an objective reason.
Yes, but it must be specified in writing and it cannot exceed three months. The notice period during the trial is five days.
Yes, when the relationship has lasted for at least three years, according to Article 152.
Pay is proportional to the hours worked, but rights are the same. More unfavorable treatment on account of part-time work is prohibited.
Read also: Minimum wage of 50,000 LEK from January 2026.
