What is a contract for temporary work?
If you are considering entering into a temporary employment contract, it is important to be aware of the definition of this type of employment agreement. Put very simply, the phrase temporary employment or work contract refers to a contract between a temporary employment agency, an employee and a third party employer, determining the duration and conditions of the employment. The main purpose of this kind of employment contract is obviously to allow for more flexible staffing arrangements and to make hiring and firing processes easier .
In terms of length, when a temporary employment contract is used, it will often be for a brief, fixed period of time. It will often contain a provision that indicates the employee can be hired by the third party employer into a permanent position. Generally, however, if the employment does not become permanent, the work contract will end at the conclusion of the temporary contract, as indicated at the beginning of the contract. This context makes temporary employment contracts differentiated from part-time or temporary employment contracts.
Fundamental Elements of a Temporary Work Contract
The key elements of a temporary work contract must include the duration of the position, including the start date and the anticipated end date, the scope of work, which should outline the work to be performed and the expectations for the position, and the compensation offered, which should describe not only the pay rate but also any bonuses or commissions the employee will be rewarded and other bonuses. Other important components of the contract are the leave policy, which should detail vacation time, sick time, and other absences, the termination clause, outlining what the employee’s rights are upon dismissal, and the choice of jurisdiction, which specifies where any disputes will be settled.
Legal Implications for Businesses and Employees
To ensure compliance with labor laws, employers should be aware of the following legal considerations:
Probation Period. The probation period for these contracts is required to be maximum of three months. The computation of the full probation period is done only if the employee works a minimum of 20 working days in a month.
Termination Rules. Employers may terminate temporary work agreements for the following reasons: expiration of contractual term, completion of the work or event foreseen, mutual agreement, resignation of the employee, death of the employee, force majeure, and temporary incapacity of the employee that has continued for more than two months.
Obligations. Both parties also have obligations to one another. The employer must pay wages, subject to change according to law, during the contract period. Wages are generally made on a monthly basis. It is also the employer’s obligation to provide a workplace and necessary equipment, unless the workplace is provided by a third party, in which case it is the former’s obligation to pay the cost of creating the workplace.
Employees’ Rights. Employees have the right to compensation for work-related and professional accidents, and any work illnesses, to a severance payment, and to social security premiums under the applicable labor legislation. They can also file a complaint if they believe that the employer has interfered with their right to carry on trade and profession.
Pursuant to Article 11 of the Turkish Labor Law, it is mandatory for the employer to insure the social security insurance of its employees before their employment.
Employee Rights. Article 12 of the Turkish Labor Law provides that the employees who meet the requirements set forth in this Article shall be entitled to benefit from the incentives contained in Article 14 of the same Law. The incentives guarantee that these employees may receive unemployment benefits if they are laid off following the expiration of a temporary work contract. This is true even if the continuation of the employment of the temporary worker is not possible where the work is not completed due to reasons beyond the control of the employer, meaning where the anticipated end date cannot be achieved.
Pros and Cons
Employers can dismiss a temp employee at any time before the end of the contract, that said it is wise to warn the employee of any gaps in performance or attendance to reduce the risk of any "wrongful dismissal suits". A temporary contract ends at the end of the stated period and the employer is not obliged to extend this contract or offer permanent employment.
The temporary contract does provide an opportunity to build your team as a company. It allows for the quick filling of roles with individuals that can adapt to change. Consequently, this could result in identified staff that you would like to remain with your company. Another advantage is the flexibility, from both the employer’s and the employee’s perspective. The employee is not obliged to remain with the company for a set period, while the company does not have to make a long term commitment. Moreover, there is no need for awkward documentation if the position is no longer available. In addition , it allows time to assess the requirements for the position to ensure that all skills are sufficiently covered. For example, if the job requires certain physical strength and some of the temps did not meet that criteria, you can choose someone who does.
An employer who hires staff on a temporary basis should additionally remember that the pay funded by the temporary agency is higher than normal salaries due to the additional agency commission. Regardless, employers usually find that since the temps are aware of the extra pay, they take care not to work less than expected. Employers also risk added employee turnover costs if the recruitment has not been done well, as they will have to go through the recruitment process again. The temp may have developed a relationship with a team. If the company then replaces the temp it will cost time while the employee adapts to a new team. Conversely, some employers believe that temps are less committed to the company than permanent staff and are more likely to leave, regardless of the investment in them.
Top Tips for Writing Temporary Work Contracts
When creating a temporary work contract agreement, there are a few best practices to keep in mind. While it’s always a good idea to draft a contract from scratch for the particular situation at hand, employers can rely on temporary work contract templates to make their job easier. There are many available both online and through business services, but be sure to use a reputable source to help ensure that the template is legally sound.
Especially if there are several details that need to be nailed down, it’s in the best interest of employers to ask for legal advice before finalizing a temporary work contract. An experienced attorney can help spot any omissions or error that could prove fatal to the contract going forward. If the scope of the work is especially large or if any outcome or potential risk to the company could result from the work, getting even more experienced legal advice is a wise choice.
In order for a contract to be enforceable, there can be no "favors" or other unspoken arrangements in place; the parties should be fully aware of the circumstances under which they will be binding themselves. For that reason, clear communication throughout the entire arrangement is important—even when it’s a temporary contract that only lasts for a short period of time.
Common Questions
If you have any further questions or need more information, please contact us.
What is the difference between a temporary employment contract and a permanent employment contract? A temporary employment contract has a fixed term and is intended to cover a specific need. In principle, a permanent contract has no set duration, although a certain period of notice for termination must be specified. Employment law distinguishes various types of temporary contracts as follows: Short-term – for temporary assignment up to 90 days in the eleven month period. Project contract – for the duration of a specific project planned to end on a specific date. Maxi contract – for longer projects or to replace an employee who is temporarily out of service. Placement contract – for temporary employment through a temporary work company.
Renewal of a temporary contract It is possible to renew or extend a temporary contract once or consciously avoid taking up the same position . A renewal or extension will not be valid if another employee holds that job at the time. In this case, the employer will need to enter into a new contract. However, this will be subject to the maximum contract duration.
Must I provide a written copy of my employment contract? No, if you have a verbal contract, you don’t need to request a written contract. However, your employer must provide a written contract if you request it.
My temporary employment contract is about to expire, can I extend my contract? Yes, you can ask to extend your contract but it depends on what is agreed with your employer. Your employer cannot refuse your request without justified reasons.
Is my temporary contract in accordance with employment law? The Dutch civil code defines the maximum duration of a temporary contract. If your contract exceeds this maximum, then it is not in accordance with employment law.
