Insights

EXTRAORDINARY RENEWAL OF FIXED TERM EMPLOYMENT AGREEMENTS

13/11/2013

On November 8, 2013, entered into force Law 76/2013 that approve a new regime of extraordinary renewal of fixed term employment agreements.

The law allows two extraordinary renewals of fixed term employment agreements that achieve the maximum duration until November 7, 2015.

Note that the duration of the employment agreement subject to extraordinary renewals have the following limits:

  • - The maximum duration of the two renewals cannot exceed twelve months;
  • - The duration of each extraordinary renewal cannot be less than one-sixth of the maximum duration of the employment agreement;
  • - The maximum duration of the employment agreement should not exceed December 31, 2016.

The calculation of the compensation applicable to the employment agreements subject to the new law and concluded until September 30, 2013 is provided in the transitional regime of Article 6 of Law 69/2013, of August 30, and the provisions of Article 366 of the Labour Code are applicable to the employment agreements concluded after September 30, 2013.

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