Will the termination of a fixed-term contract have to be justified in Poland?

A draft proposal has been submitted to the Senate Committee on Human Rights, Rule of Law and Petitions, that would introduce the obligation to justify termination of fixed term contracts. Until now, employers had to provide such justification only in the event of termination of a contract without notice (regardless of the type of contract), or in the case of termination of indefinite period contracts.

In the near future, the Senate is expected to consider a proposal to introduce an amendment to the Labor Code, that would require justification to be provided in the case of termination of fixed term employment contracts. This project is already evoking negative emotions and opposition from "Pracodawcy RP" (a Polish Employers' organization), who emphasize that as a result, employment contracts will become less flexible and thus less a less popular option.

Justification for termination of an indefinite period contract

Currently, employers are obliged to give a reason when terminating an indefinite period contract- this is regulated by the Labor Code, although such reasons have not been clearly catalogued and specified. As is clear from the case-law, the reason given should be true and specific. The reason for terminating a contract may lie on the employer's side or be based on the employee's actions. Such justification for termination of a contract is also required in the case of a summary dismissal.

As of now, employers are not obliged to justify termination of a fixed-term contract. However, the proposed amendments to the Labor Code may change this. Failure to give the reason for termination of a contract makes it difficult for an employee who wants to refer their case to court. Being employed for a limited period of time, such employees can not claim unfair or unjustified termination. They only have the right to question certain formal requirements, such as the lack of written notice or notice period.

What are the potential consequences of requiring justification for termination of fixed-term contracts?

Currently, a significant part of employment contracts concluded are fixed term contracts, so the proposed changes may result in not only a reduction in their overall number, but also a lack of flexibility in employment overall. As emphasized by "Pracodawcy RP", the effect of this may also be an increase in the number of fixed term contracts concluded for less than 6 months, as these will not be subject to the new requirements. According to representatives of employers' organizations, this change will completely eliminate the differences existing outside these two types of contracts, thus undermining the statutory purpose of their discernment. Another negative effect may also be an increase in other forms of employment that do not require employment contracts.