How many times can we extend an employee's fixed-term contract?

A company initially hires a new employee for a year, then extends the contract by half a year and later by another half a year. However, the law limits both the number and the total duration of successive fixed-term contracts. The rules differ between Slovakia and Czechia, and breaching them may result in an employment relationship for an indefinite term that does not end when the agreed term expires.

Slovakia: a maximum of 2 years and two extensions

The basic rule is set out in the Labour Code (Act No. 311/2001 Z. z.):

The following quotation is reproduced in its original language:

Pracovný pomer na určitú dobu možno dohodnúť najdlhšie na dva roky. Pracovný pomer na určitú dobu možno predĺžiť alebo opätovne dohodnúť v rámci dvoch rokov najviac dvakrát.

§ 48 ods. 2 zákona č. 311/2001 Z. z.

In its judgment of 30. 11. 2022, case no. 9Cdo/273/2020, the Supreme Court of the Slovak Republic explained that an employer has two options. It may enter into the first contract for up to 2 years without stating a reason, but it cannot then extend it without an objective reason. Alternatively, it may enter into a shorter contract and extend or renew it no more than twice within 2 years. In the opening example, the two extensions within 2 years are therefore permissible, but a third would require a statutory reason.

A break between contracts will not help if it is shorter than 6 months. A new fixed-term employment relationship between the same parties that begins before 6 months have elapsed since the previous one ended constitutes a renewal and counts towards the limit (Section 48(3)). A fixed term must be agreed in writing; otherwise, the employment relationship is for an indefinite term (Section 48(1)).

When a contract may be extended beyond the statutory limit

Beyond two extensions or beyond 2 years, the law permits a further extension only for the reasons it lists (Section 48(4)): covering for an employee during maternity, paternity or parental leave and any annual leave immediately following it, during sick leave or during long-term release from work to hold public or trade union office; a temporary substantial increase in employee numbers for no more than 8 months in a calendar year; seasonal work for no more than 8 months in a year; and work agreed in a collective agreement. The reason must be stated in the employment contract (Section 48(5)). A special rule applies to university teachers, creative research and development staff and vice-rectors (Section 48(6)).

A reference to a collective agreement alone is insufficient. In the dispute addressed by the cited judgment, a theatre extended an actress’s employment by 5 years merely by referring to an article of the collective agreement. The Supreme Court concluded that the contract lacked an objective reason for its temporary nature and dismissed the theatre’s appeal on points of law, leaving in force the declaration that the employment relationship continued for an indefinite term. Beyond the question raised in that appeal, it also agreed with the regional court’s reasoning that, even under a statutory exception, an individual extension cannot be agreed for more than 2 years. The Supreme Court did not assess that issue separately in the appeal on points of law. The rules on successive fixed-term contracts do not apply to a temporary employment agency (Section 48(9)); the limits applicable to agencies are described in the question on how long an agency worker may work for the same company.

What happens if the rules are breached

If the statutory conditions were not met when the contract was entered into or amended, the employment relationship is for an indefinite term (Section 48(1)). The law does not make this consequence conditional on any notification by the employee. The relationship therefore does not end when the term specified in the contract expires (Section 59(2)) and may be terminated only by agreement, by notice on a statutory ground or by immediate termination. Successive fixed-term contracts also count when determining the length of the notice period (Section 62(5)), as explained in the question on how long the notice period is.

Czechia: 3 years for each employment relationship and a maximum of 9 years overall

The Czech Labour Code (Act No. 262/2006 Sb.) permits a fixed-term employment relationship for a maximum of 3 years and no more than two renewals between the same parties, with an extension also treated as a renewal. Such relationships may last no more than 9 years in total from the start of the first. Where an employee is being covered during maternity, paternity or parental leave, the number of renewals is unrestricted, but the limit of 9 years still applies. If 3 years have elapsed since the previous employment relationship ended, that relationship is disregarded (Section 39(2) of Act No. 262/2006 Sb.). A different approach may be taken for serious operational reasons or because of the special nature of the work, but only under a written agreement with the trade union organisation or, if none operates at the employer, under internal rules containing the particulars required by Section 39(4). The limits do not apply to an employment relationship entered into by an employment agency for work at another employer (Section 39(6)).

The consequence of a breach differs in Czechia from that in Slovakia. An employment relationship for an indefinite term arises only if, before the agreed term expires, the employee notifies the employer in writing that they insist on continued employment. Either the employer or the employee may bring an action for a court determination of whether the conditions were met, no later than 2 months from the day on which the relationship was due to end upon expiry of the agreed term (Section 39(5)). If the employee continues working after the term expires with the employer’s knowledge, the relationship is treated as being for an indefinite term (Section 65(2)).

We will prepare fixed-term contracts and extensions and set up deadline tracking for Slovak and Czech employees as part of our employment contracts and documentation service. If you have several successive contracts, we will check whether the employment relationship is still for a fixed term.