Minimum duration contract

Open-ended Contract/Fixed Term Contract

The open-ended contract and the fixed term contract are the two most well-known types of employment contracts. The former is concluded for an indefinite period and must be terminated by either party to end it. The second type of contract ends automatically on the agreed date.

Problem

Both fixed-term and open-ended contracts have certain characteristics that may not be suitable for the employer in certain situations.

In the case of an open-ended contract, the employment contract can be terminated at any time. The employee can resign. The employer can dismiss the employee. In the case of a fixed-term contract, the contract is automatically terminated on the agreed date. If the employer and employee wish to continue working together, a new employment contract must be concluded.

An employee who agrees to move to Switzerland to work? An employer who absolutely needs an employee for a certain period of time to complete a project?

Sometimes it is in the interest of the parties that the other party cannot terminate the employment contract before a certain period of time. Moreover, they sometimes wish to continue working together after that date, unlike in a fixed-term contract. In such situations, the mechanism of the minimum term contract is useful.

Minimum term contract

A minimum term contract is an employment contract that cannot be terminated before a certain date. It is considered to be a fixed-term contract before the end of the term.

After the deadline, it becomes an open-ended contract and can be terminated. This mechanism has numerous consequences, particularly in terms of protection against untimely and wrongful terminations.

Probationary period

Before the end of the period during which the employee and the employer cannot terminate the contract, the employment contract is considered to be for a fixed term. The trial period is not presumed but may be provided for. Its duration must however be limited.