Specific employment contracts are contracts concluded between the employer and the employee for a certain period of time. In such contracts, it is planned that the employer hires the employee for a certain period of time. Specific employment contracts ensure that the employee continues to work as long as the employer needs the job.
However, fixed-term employment contracts are often preferred by employers as they do not have to pay severance pay. Severance pay is a compensation paid to the employee in case the employee leaves the employer, depending on the period of employment. Severance pay is an obligation that the employer must pay to the employee and is an important cost item for employers.
In definite employment contracts, employers are not obliged to pay severance pay as the employee is usually hired for a certain period of time. However, since fixed-term employment contracts are concluded for a certain period of time, workers may have to leave their jobs when their contracts expire. In this case, whether the workers are entitled to severance pay depends on the form and conditions of the contract.
In the case of fixed-term employment contracts, the right to severance pay generally depends on the length of the contract. For example, a worker who enters into a fixed-term employment contract of one year or more may be entitled to severance pay upon termination of the contract.
However, the right to severance pay under a fixed-term employment contract may also arise from a special agreement between the employer and the employee. The employer may make a special severance payment agreement for a specific employment contract. In this case, the employee may receive a predetermined severance payment when a specific employment contract ends.