The employment contract: common misconceptions and their refutation

Employment law is one area where employees and employers often encounter many misconceptions. Lack of clarity can lead to wrongdoing and rights violations. Clauses that circumvent the law or limit the worker’s rights may be void, regardless of whether they are signed.

In this article, I will address some of the most common myths and clarify what the law actually provides.

Myth 1: “If the employment contract provides for the possibility of unilateral termination by the employer for compensation, the consent of the employee is not relevant.”

The law clearly defines the grounds and procedure for terminating the employment relationship and does not provide for such an option for the employer. The same can offer the employee termination of the employment contract by mutual agreement, but it is for the purpose the express consent of the employee is required. In thе scenario of a termination by mutual consent against compensation initiated by the employer (art. 331 of the LC), the latter owes compensation in the amount of four times the last monthly gross remuneration received, unless a larger amount is provided for in the contract.

Myth 2: “If the employee has not worked in exactly the same position until that moment, additional remuneration for accumulated seniority and professional experience is not due.”

The recognition of work experience does not depend only on the code or title of the position, but also on the nature of the work, the professional field and the relevant qualification characteristics. Previous experience in a similar or similar role should be recognized. The conditions under which the similar nature of the work is respected should be defined in the employer’s internal wage rules.

Myth 3: “If the project an employee is working on is terminated by employer‘s client, the employer has the right to fire the employee.”

Termination of a project or contract with a client is not a stand-alone ground for dismissal. The Labor Code provides for specific grounds, such as layoffs or reductions in workload, which must be duly justified and carried out in accordance with the law.

Myth 4: “With the employment contract, the employer can limit the employee’s ability to work elsewhere.”

Such a ban can be negotiated, but only within certain limits:

        To protect a trade secret – e.g. if the employee has access to sensitive information that could be used by a competitor.

        To prevent conflict of interest – e.g. if working for the second employer may affect the interests of the first (for example, working for a competitor in the same sector).

If there is a ban, it should be clearly agreed upon and justified in the contract, not verbal or generally mentioned.

Myth 5: “The employment contract may prohibit the employee from working for another employer in the same field after termination of his legal relationship.”

After termination of the employment relationship, the principle of freedom of labor applies. The stipulation limiting the performance of competitive activity by employees for a certain period after the termination of their employment contract violates the constitutionally recognized right to work, which is why it is invalid.

Myth 6: “Remote work regime allows the employee to work from anywhere.”

Remote work does not give complete freedom of location. The employment contract specifies the place of work, which may be one or several. At the written request of the employee, the employer can change it for up to 30 working days per year. The employee must provide a suitable workplace, but the employer remains responsible for health and safety at work.

Myth 7: “An employer can force an employee to take leave whenever they want.”

The rule is that the leave is used at the request of the employee and with the written permission of the employer. Mandatory use of leave is permissible only in situations expressly provided for in the law – a stay of more than 5 working days, when all workers and employees use the leave at the same time, as well as in cases where the worker or employee, after being invited by the employer, has not requested their leave by the end of the calendar year for which it is applied.

 

Labor relations are strictly regulated by law and cannot be amended by unilateral or unequal clauses in contracts. If you are in doubt about your rights, our team are available to help you with professional advice.

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