Cases

Labour contracts prolonged automatically

The judgment of the Supreme Court issued by the seven-judge panel on 23 September 2014 regarding article 13 sec. 1 of the Act on mitigating the effects of the economic crisis for employees and entrepreneurs (    this so called First Anti-Crisis Act) is already beginning to reverberate in the activities of our Clients. In this judgment (III PZP 2/14) the Supreme Court ruled that the extension of the 24-month period of employment referred to in the provision above (regardless whether the basis for the employment is one employment agreement concluded for a definite period or there are a few such agreements) is equivalent to the legal consequences of entering into an employment agreement for the indefinite period.  

The judgment would not aroused such interest if not the fact that article 13 sec. 1 of the Act in question applies to any and all entrepreneurs (regardless whether they experienced the economic downturn or fulfills the conditions of bankruptcy). The Act was in force during the period from 22 August 2009 to 20 November 2013 – employment agreement concluded in this time for the definite period exceeding 24 months meant that the parties concluded an employment agreement for an indefinite period.

The legal consequences of this ruling may go fairly further, than it seems for the first glance.

 

 

 

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