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Employing in Europe: Overview of important labour law aspects | Infographic

August 28, 2024
This article is also available in
CzechSlovak

A flexible labour legislation is essential for promoting the creation of new businesses, the growth of established firms and the creation of career opportunities. European countries have distinctive employment law frameworks, yet still remain competitive for investors.

Our infographic on employing in Europe and its labour law sums up and compares working aspects in European countries such as: the Czech Republic, Hungary, Poland, Romania, Slovakia and the United Kingdom.


Employing in Europe on fixed-term employment contracts

According to local legislation, there are two types of employment contracts: fixed-term and indefinite. In the case of fixed-term contracts, the law stipulates several conditions and restrictions.

Fixed-term contract duration

Czech Republic
3 years

%
Hungary
5 years**

%
Poland
2 years and 9 months***

%
Romania
3 years

%
Slovakia
2 years

%

The United Kingdom has no minimum or maximum duration for fixed-term employment contracts****

Renewal possibilities*

Czech Republic
2 times

%
Hungary
not specified**

%
Poland
2 times

%
Romania
2 times****

%
Slovakia
2 times*****

%
United Kingdom
not specified******

%

* A contract concluded after the maximum times of renewal will be automatically a contract for an indefinite period.
** Hungary: The duration of a fixed-term employment relationship may not exceed five years, including the duration of an extended relationship and that of another fixed-term employment relationship concluded within six months of the termination of the previous fixed-term employment relationship.  A fixed-term employment relationship may be extended, or another fixed-term employment relationship may be concluded within six months from the time of termination of the previous one upon the employer’s legitimate interests. If the fixed-term employment relationship is extended or another fixed-term employment relationship is established within six months from the time of termination of the previous one and employment is provided in the same or similar position, no probationary period may be stipulated.
*** Poland: 2 years and 9 months pertains to the total duration of subsequent contracts.
**** Romania: A maximum of three successive fixed-term employment contracts may be concluded between the same parties. Successive contracts are those concluded within 3 months of the end of the fixed-term contract and may not last for more than 12 months each. As a result, the legal maximum duration of fixed-term contracts concluded between the same parties can be 60 months. This is theduration of the first 36 months contract, plus 12 months for each of the two successive contracts.
***** SlovakiaThe total duration, including any renewals, cannot exceed two years.
****** United Kingdom: Typically, the duration is explicitly stated in the contract and can range from a few months to several years. Employers can renew fixed-term contracts, but after four years of continuous employment on a fixed-term contract, the employee automatically becomes a permanent employee unless the employer can justify not doing so. If the contract is not formally renewed but the employee continues to work past the end date, it may be implied that the contract has been extended on the same terms.


Trial period

During the trial period, both parties can terminate the employment relationship without restrictions.

Execution position

Czech Republic*
3 months

%
Hungary**
3 months

%
Poland***
3 months

%
Romania****
90 calendar days

%
Slovakia*****
3 months

%
United Kingdom******
6 months

%

Management position

Czech Republic*
6 months

%
Hungary**
3 months

%
Poland***
3 months

%
Romania****
120 calendar days

%
Slovakia*****
6 months

%
United Kingdom******
6 months

%

* Czech Republic: A probationary period may not be longer than one half of the agreed duration of the employment relationship and must be agreed in writing on the day of work commencement at the latest. During the probation period, the employer may not terminate an employment relationship within the first 14 calendar days of an employee’s temporary incapacity for work (quarantine).
** Hungary: The parties may stipulate in the employment contract a probationary period up to 3 months from the beginning of the employment relationship. If a shorter probationary period is stipulated, the parties may extend the probationary period – only once. The probationary period, even if extended, shall not exceed three months.
*** Poland: In Poland, it is concluded as a special employment contract for the trial period, which is concluded for a period not exceeding 3 months. With the reservation that it is concluded for 1 month – in the case of the intention to conclude an employment contract for a fixed period of fewer than 6 months,  and for 2 months – in the case of the intention to conclude an employment contract for a definite period of at least 6 months and less than 12 months. The parties may agree that the contract is extended by the time of leave, as well as by the time of other justified absence of the employee.
**** Romania: Trial/probationary periods for short-term contracts may be agreed upon separately, based on contract length, as defined by law. There are also exceptions: the probation period is established depending on the category of employee, type of employment contract etc. For example, disabled employees have at least 45 working days; fixed-term contracts have a different probation period depending on duration etc.
***** Slovakia: A probationary period must be agreed upon in writing and included in the employment contract. For fixed-term contracts, the probationary period cannot exceed half of the contract’s term.
****** United Kingdom: The duration of the probation period is at the company’s discretion, but usually lasts 3-6 months.

 


Working time

Standard employment contracts*

Czech Republic

Working time: 40h/week

Overtime: 150h/year**

Hungary

Working time: 40h/week

Overtime: 250h/year***

Poland

Working time: 40h/week

Overtime: 150h/year****

Romania

Working time: 40h/week

Overtime: 8h/week*****

Slovakia

Working time: 40h/week

Overtime: 150h/year******

United Kingdom

Working time: 35-40 hours/week

Overtime: Uncapped (would be at company discretion)

* The exact conditions under which overtime can be performed, as well as the exact periods (per week, month or year) are specified in detail in all local legislation.
** Czech Republic: Overtime can be increased up to 416 hours/year if agreed with the employee.
*** Hungary: In addition to 250 hours, maximum 150 hours of overtime work can be ordered in a given calendar year subject to agreement between the employee and the employer in writing (voluntary overtime). The employee may withdraw from the agreement at the end of the given calendar year.
**** Poland: Overtime can be increased to 416 hours/year.
***** Romania: The rule is that the legal maximum working time cannot exceed 48 hours/week, including overtime. By exception, however, working time may be extended beyond 48 hours/week, provided that the average working hours, calculated over a reference period of 4 calendar months, do not exceed 48 hours per week. For certain sectors of activity, units or professions laid down in the applicable collective agreement, reference periods longer than 4 months but not exceeding 6 months may be negotiated.
****** Slovakia: Overtime can be increased up to 400 hours/year (employee consent needed).

 


Annual leave

Entitlement to annual leave or vacation is determined according to the time worked.

Vacation right

(”working” days/year)

Czech Republic: 20 days*

Hungary: 20 days

Poland: 20 – 26 days**

Romania: 20 days

Slovakia: 4 weeks/5 weeks****

United Kingdom: min. 20 days plus 8 bank holidays

Additional leave  

(”working” days/year)

Czech Republic: approx.* 5 days (special employment conditions)

Hungary: up to 7 days depending on the number of children; up to 10 days depending on age

Poland: up to 9 days (5 days of care leave, 2 days of child care, 2 days off work due to force majeure)

Romania: minimum*** 3 days

Slovakia: Unpaid/paid leave by mutual agreement****

United Kingdom: at company discretion*****

* Czech Republic: Employees are entitled to 4 weeks of vacation in a calendar year. The law defines the entitlement to additional leave for certain demanding professions (in the length of the specified weekly working hours).
** Poland: 20 days – if an employee has been employed for less than 10 years, or 26 days if an employee has been employed for at least 10 years; 5 days/year/care for a family member for medical reasons, 2 days/year/care for a child,  2 days/year/force majeure
*** Romania: The law defines the entitlement to additional leave for certain categories of employees (e.g. employees working in difficult/dangerous/harmful conditions, blind employees, disabled employees, young people under the age of 18).
**** Slovakia: The minimum annual leave entitlement is 4 weeks. Employees aged 33 or over by the end of the year and those providing permanent childcare are entitled to 5 weeks of annual leave. If you start or stop providing permanent childcare during the year, you are entitled to a portion of the additional week based on the length of time you provided childcare.
***** United Kingdom: If entitled Statutory Maternity Pay (SMP) is paid for up to 39 weeks by the UK government, along with Statutory Sick Pay (SSP) for up to 28 weeks.

 


Notice period

Termination without giving a reason by the employee is defined by local regulations. However, the length of the notice period depends on the circumstances of the termination of the contract.

Czech Republic
60* calendar days (approx.)

%
Hungary
30- 90** calendar days (approx.)

%
Poland
14- 90*** calendar days (approx.)

%
Romania
20- 45**** working days

%
Slovakia
30- 90***** calendar days (approx.)

%
United Kingdom
30- 90****** calendar days (approx.)

%

* Czech Republic: The standard notice period is 2 months.
** Hungary: Standard 30 days. Where employment is terminated by the employer, the thirty-day notice period shall be extended by 5-60 days, based on the total previous employment period.
*** Poland: Agreements concluded for definite and indefinite periods: 2 weeks for termination after less than 6 months of activity, 1 month after at least 6 months, 3 months after 3 years; Probation period is not included in the calculation of notice period.
– Probation period: 3 working days if the probation period does not exceed 2 weeks; 1 week if the probation period is longer than 2 weeks; 2 weeks if the probation period is 3 months.
**** Romania: In case of resignation, the notice period is maximum 20 working days for employees in executive positions and maximum 45 days for employees in management positions. In case of dismissal, the employee is entitled to minimum 20 working days’ notice, regardless of whether the post is an executive or management post.
***** Slovakia: 1 month for termination after < 1 year of employment, 2 months for others; in case of termination due to dissolution or relocation of the employer, redundancy or health condition of the employee the NP is 2 months for employees with 1 – 5 years, 3 months for > 5 years of employment.
****** United Kingdom: At company discretion – normally 1-3 months depending on how long an employee has been in employment

LABOUR LAW OVERVIEWS 2024
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