On July 1, 2024, a legislative change that establishes new requirements for the content of employment contracts will come into effect. This amendment expands the list of information that must be included in employment contracts entered into after July 1. Additionally, employees will be able to request that existing employment contracts be updated or supplemented. Therefore, the legislative change means that employers must update their templates for employment contracts and prepare for existing contracts to be updated or supplemented.
What do the legislative changes regarding the content of the employment contract entail?
The Working Environment Act § 14-6 sets minimum requirements for the information that must be included in the employment contract. In addition to the information that is currently required, from July 1, 2024, employment contracts must also include the following new information:
- Whether the employee can freely choose their workplace
- Any right to leave other than vacation paid by the employer
- The procedure for termination of employment
- A specific indication of the various elements that make up the employee's salary
- Whether the daily and weekly working hours will vary
- Arrangements for shift changes
- Arrangements for work beyond agreed working hours, including payment for such work
- Right to skills development that the employer may offer
- The identity of the lessor if the employee is leased from a staffing agency
- Benefits provided by the employer for social security and the names of institutions receiving payments from the employer in this regard
With these changes, information that has previously been recorded in employee handbooks or internal guidelines will need to be included in the employment contract. The department is clear that the new rules are not intended to change the framework for the employer's managerial authority. However, employers should be aware that more detailed regulation in the employment contract may affect managerial rights.
In addition to expanding the list of information that must be included in the employment contract, shorter deadlines for when a written employment contract must be in place are introduced from July 1, 2024, along with new rules for probationary periods, part-time, and temporary employment.
Assistance with Managing the Legislative Change
Do you need advice or assistance related to the new requirements for employment contracts and how they affect your business and the updating of templates for employment agreements? We are happy to help prepare your business for the upcoming changes in the Working Environment Act.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.