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Expiration of the employment relationship

The employment relationship will automatically expire by law in connection with an incident that is strictly defined in legal provisions.

Incidents causing expiration of an employment relationship include:

  • death of the employee,
  • death of the employer: this refers to an employer who is a natural person. If the heirs step in to replace the former employer, the employment relationship is not terminated, it continues on the basis of the transfer of the establishment,
  • the end of the 3-month of the employee’s absence of  due to their temporary arrest,
  • the failure of an elected employee to declare their return to their previous job within 7 days of the termination of the employment relationship based on election,
  • the employee's failure to report for work within the specified period of time after completing compulsory military service.

Amendments to the expiration of the employment relationship apply in the case of individuals who carry out a business activity in their own name and employ employees as part of that activity (that is entrepreneurs who are employers).

In the event of the death of such an employer, the employment contracts shall not automatically expire on the date of the death of the entrepreneur.

In the event that the entrepreneur establishes a succession management during their lifetime, in accordance with the Act on the succession management of a natural person’s enterprise, the employment contracts will continue and will expire only upon expiry of the succession management.

On the other hand, in a situation where the entrepreneur has not appointed a succession manager during their lifetime, employment contracts do not expire immediately either, but only 30 days after the entrepreneur's death. However, they will not expire if the persons authorised to carry out preservation measures or the succession manager appointed after the death of the entrepreneur conclude an agreement to continue the employment relationship in accordance with the existing rules.

Translated with the support of the European Labour Authority

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