Invalidity of the employment contract – functions, grounds, types and consequences

Abstract

This article analyzes the specifics of both the full and partial invalidity of the employment contract, with the help of which the legislator provides protection to the employee, preserving the employment relationship and the most favorable regulatory conditions for the employee. In general, the defect in the employment contract determines the existence type of invalidity (i.e., full or partial), but not the type of legal consequences they give rise to. It is argued that the good faith of the employee determines the changes following the determination of full invalidity, but at the same time it has no significance for the transformative effect of the partial invalidity. Arguments are presented in support of the conclusion that the complete invalidity is declared with the help of a constitutive claim, as opposed to the partial invalidity, which is declared through a declaratory action. The article places emphasis on the regulation of this contradiction with the collective labor agreements as a ground for partial invalidity of the labor agreement and its importance as an essential part of the state sanction of the non-state source. We analyze the mechanisms through which the norms of private law (i.e., collective labour agreements) replace contradictory clauses, ensuring the application of the more favorable for the employee normative regime, created by the different types of non-state sources. Finally, the article proposes changes to the provisions of Art. 74 and Art. 75 of the Labor Code, the adoption of which would prevent a number of practical problems and would ensure the application of a more effective protection regime in case of complete and partial invalidity of the employment contract.

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