Jul 7, 2024
Temporary Employment – Rules and Requirements under the Working Environment Act
As a general rule, the employee shall be employed on a permanent basis. This means that the employment is ongoing and of indefinite duration, that the legal rules on termination of employment apply, and that the employee is assured predictability for work in the form of a genuine extent of position. Temporary employment can only be agreed upon in special cases explicitly stated in the law.
Legal Grounds for Temporary Employment
The central basis for temporary employment is that the work is of a temporary nature. This means that the tasks must be time-limited and that there is a temporary need. It is not sufficient that the employer is uncertain about the future need for labor. However, seasonal fluctuations in workload may provide grounds for temporary employment.
Especially About Substitutes
The law permits temporary employment when the employee is to work in place of another or others (substitute). It is not decisive that the name of the person being substituted is provided in advance. It will, for example, be allowed to use holiday substitutes as replacements in connection with holiday replacement, without these substitute positions being tied to specific individuals. However, the substitute position must still be specifically limited in some form.
Other Special Grounds
The law also allows for temporary employment in the case of practical work and for participants in labor market measures. Practical work will normally occur in connection with training or qualification within a field. Special rules apply to athletes, sports coaches, referees, and other leaders within organized sports.
The Three-Year Rule
An employee who has been continuously temporarily employed for more than three years according to the rules for work of a temporary nature or substitution shall be regarded as a permanent employee. When calculating the length of employment, there should be no deductions for the employee's absence.
Formal Requirements and Legal Effects
There are strict requirements for form and content in temporary employment. The agreement must be in writing, and it must state that the employment is temporary. The basis for the temporary employment must be specified, and the expected duration must be informed. If the employer has not informed that the employment relationship is temporary, it shall be assumed that the employee has a permanent position.
Termination of Employment
Temporary employment contracts terminate at the expiration of the agreed period or when the specific work has been completed. An employee who has been employed for more than one year is entitled to written notice of the termination date at least one month before the termination date. During the contract period, the general legal rules on termination of employment apply.
If the conditions for temporary employment are not met, the employee shall be considered permanently employed. In such cases, the employee may claim permanent employment through a court and may also be entitled to compensation.