Probation period clause in the employment contract: myths, problems and reality
Keywords:
probation period (clause), term of the employment contract, termination condition of the employment contract, modality, right to unilateral termination of the employment contract, subject of negotiation, exclusive employment clause, legal limits to the right of contracting, holder of the right to probation period, position title/employment position, for which there is a probation period, length of the probation periodAbstract
The focus of this article is the probation period clause in employment contracts and the specific legal effects that this clause has on the legal relationship between the employer and employee. By comparing the probation period clause with the term and termination condition clauses, the fundamental differences of these three modalities of the employment contract are explored and explained. The paper dives into the possibility to establish simultaneously a probation period clause and a term of employment clause in the same contract, while also focusing on the practical challenges that such combination may give rise to. The paper argues in favor of the theory, that the probation period clause has three elements, further expanding on the legal limits to negotiating these three elements, as well as the legal consequences in the event of a breach. The criteria for identifying what classifies two employment positions as “identical”, “similar” or “different” are enlisted in the context of the general prohibition for negotiating more than one probation period clause for two identical positions, between two identical parties in an employment relationship. The most common practical problems, arising out of the use of the probation period clause and the recent case law trends are explored in detail. Taking all of the findings into account, the paper finishes by giving specific recommendation for changes in the law that will overturn some case law interpretations, creating a less prohibitive legislative regime and allowing a broader practical use of the probation period clause.
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