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What is the Fixed-term Employment Contract?

The Fixed-Term Employment Contract regulates the employment relationship of employees, workers and executives who are hired for a predetermined period of time. It is used as an alternative to the permanent contract with which, on the other hand, there is no fixed duration but only a start date.

This contract is used for all scenarios where the employer will have temporary work needs. Some common examples are covering the jobs of sick or maternity employees, hiring additional workforce during busy times.

The discipline of the fixed-term employment relationship is governed by the provisions of the Civil Code (art.2096-2129) and other special laws, such as the Workers’ Statute ( Law no. 300 of 20 May 1970) and the Jobs act (D .Lags 4 March 2015 n.23 and 15 June 2015, n.81), recently amended by the Dignity Decree ( Legislative Decree n. 87/2018).
It is also governed by the national collective labor agreements ( CCNL) which are stipulated by employers ‘organizations (e.g. Confindustria, Confcommercio) and by workers’ unions (CGIL, CISL and UIL). These collective agreements must not be compulsorily applied by everyone, but only by employers registered with the associations that have stipulated them.

When you can use temporary work

This contract can be used to form an employment relationship for a limited period of time with any type of worker with the exception of managers, for whom there is a specific contract.

There are two main limitations to the use of the fixed-term subordinate employment contract:

  • the duration of the fixed-term contract cannot exceed 12 months, including any extensions.
    Exceptionally, a longer duration may be envisaged, not beyond 24 months, in the presence of specific needs indicated by the law (the “reasons” of art. 19, Legislative Decree no. 81/2015).
    Beyond the term of 24 months, it is possible to proceed with a further contract renewal for a single time and for a maximum of 12 months, provided that the new term contract is stipulated at the competent Territorial Labor Inspectorate (ITL), with the assistance from a trade union representative.
    In the event of non-compliance with this procedure, as well as in the event of exceeding the term established in the same contract, the new contract is considered to be indefinite.
    Collective agreements, including corporate agreements, may provide for different and additional limits to this duration limit;
  • if you have more than 5 employees, it is not possible to have a share of more than 20% of your workforce with fixed-term contracts.
    However, there are a number of hypotheses in which this limit is not applied:
    – innovative start-ups;
    – start-up of new business for periods provided for by national collective bargaining agreements;
    – reasons of a substitute nature (e.g. maternity);
    – workers over 55;
    – specific radio shows or programs;
    – fixed-term contracts stipulated by research institutes for the exclusive performance of research activities or support to this;
    – managers and mobile workers.

As regards the extension of the fixed-term contract, it must first of all be remembered that the law provides for a maximum of 4 renewals or extensions over a period of 24 months. In the case of renewal, it will also be necessary to comply with the obligation of a minimum interval between two successive forward contracts: a term of 10 days when the previous contract is less than six months, 20 days instead of when the previous fixed-term contract exceeds six. months. These intervals do not apply to seasonal activities and in the hypotheses provided for by collective agreements.

There are also specific prohibitions on the possibility of using the fixed-term contract, among which, for example, one of the most important is the prohibition of temporary employment to replace workers on strike.

How can the fixed-term contract terminate?

With this contract, the parties undertake for a predetermined period of time and therefore may terminate the employment relationship before the expiry date only for mutual consent or for serious reasons. In this, the fixed-term contract differs from the permanent one, with which it is instead possible to terminate the employment relationship at any time, even for minor reasons, by giving the necessary notice.

The cases in which it will be possible to terminate the employment relationship are the following:

  • by mutual consent of the parties, who by mutual agreement decide to dissolve the contract;
  • if there is a just cause, as provided for by art. 2119 of the civil code, that is a fact of such gravity as not to allow the continuation, not even provisionally, of the employment relationship.

In the absence of mutual consent or just cause, if the worker decides to withdraw before the normal expiry of the contract, the employer will have the right to be compensated for the damage that has been caused; while if the employer dismisses the worker, he will be obliged to pay the salary due until the regular conclusion of the contract.

What does the contract model contain?

Our employment contract meets all legal requirements. The main clauses included concerns:

  • duties: a description of the activities required of the worker
  • duration: the possibility to choose how long the contract will last
  • trial period: the first period of work, with fewer restrictions on the termination of the relationship, to verify that both employer and employee are satisfied
  • remuneration: with a guide for respecting the minimums
  • bonus: the possibility for the company to offer its worker a discretionary annual bonus
  • commission: the option to offer the worker a percentage of the sales he makes as an incentive
  • holidays, permits, and meal vouchers.

Furthermore, after the purchase, we will guide you step by step through all the subsequent formalities necessary for the recruitment and, as an additional service, we could help you in correctly starting and maintaining the employment relationship (payslips, contributions, etc.).

Information you need

All employer and employee data are required to complete the contract.

Remember that our service does not generate a simple facsimile of a fixed-term employment contract. Based on your choices, the system automatically draws up a customized contract model for your needs, guaranteeing its legal correctness.

The document can be modified free of charge in all its parts without time limits. Don’t worry so if you don’t have all the information available right away, you can always enter it later.

Other names

  • Letter of commitment to hire
  • Letter of employment for a fixed term
  • Fixed-term contract for office workers, workers, middle managers
  • Fixed-term contract with increasing protections (Jobs Act)
  • Temporary employment contract

Other useful templates and facsimiles

  • Contract of Employment on Call: to use the employee’s work at intervals of time as needed
  • Permanent Employment Contract for Employees: to hire a worker without a set period of time
  • Executives Employment Agreement: to hire a manager or executive
  • Employee Confidentiality Agreement: To protect the information you share with your employees
  • Non-Competition Agreement for Employees and Executives: to prevent the worker from going to a competitor at the end of his employment relationship
  • Agency Agreement: to engage an agent to sell a company’s products or services
  • Letter of Dismissal from an Employee: to notify an employee of the termination of the employment relationship