Legal Alert - Automatic prolongation of the fixed-term Employment Contracts

Upon the request of Papazoski and Mishev Law Firm, the Macedonian Ministry of Labour has issued a positive opinion for the possibility for automatic prolongation / rolling over of the fixed-term Employment Contracts. As stated in the opinion, the parties of an employment contract can agree that the contract will be automatically extended for subsequent predetermined periods (e.g. one month each), until one of the parties notifies the other that the contract will no longer be extended.

In practice, this means that the parties can agree such mechanism in the Employment Contract and such automatic rolling-over could continue until the 5th anniversary of the contract.

The benefits from the above procedure would be the following:

The parties do not need to sign annexes for each extension of the fixed-term Employment Contract;

Such procedure would give flexibility to both parties to terminate the Employment Contract at any time (on the day of the expiration of each extended period), without thereby exposing themselves to eventual claims for wrongful termination;

The administrative burden for the companies (preparation and signing of annexes, following the dates for expiration of the employment contracts, etc.) would be eliminated.

How can we assist you?

Papazoski and Mishev Law Firm can assist you in drafting the appropriate changes of your standard template Employment Contracts in order to effectuate the above procedure in accordance with the given opinion by the Ministry of Labour.

For more details on the above procedure please refer to your usual contact within Papazoski and Mishev Law Firm.