When is Contract Considered Indefinite-Term?

According to Article (98) of the Labor Law:

A contract is considered indefinite-term in the following cases:

1. No Specified Term

If the contract is concluded without specifying its term.

2. Exceeding Five Years

If the contract is concluded for a period exceeding five years.

3. Total Period Exceeding Five Years

If the original and renewed contract period exceeds five years.

4. Continuation After Term Expiry

If both parties to a fixed-term contract continue its implementation after expiry of its term without explicit agreement on renewal.

5. Specific Work Contract Exceeding Five Years

If an employment contract is concluded to complete specific work and this takes a period exceeding five years.

6. Renewal of Specific Work Contract

If an employment contract concluded to complete specific work is renewed, and the period for completing the original work and the works for which the contract was renewed exceeds five years.

7. Continuation After Work Completion

If an employment contract concluded to complete specific work ends and both parties continue its implementation after completing this work without explicit agreement on renewal.

Legal Significance

Determining the contract type (fixed or indefinite-term) has important legal effects on:

Method of contract termination
End-of-service entitlements
Required notice period
Due compensations

Frequently Asked Questions

When does a fixed-term contract become indefinite-term?

It becomes indefinite-term in 7 cases specified by Article 98 of the Labor Law, including exceeding 5 years or continuing after term expiry without explicit renewal.

Why is determining contract type important?

Determining contract type has important legal effects on termination method, end-of-service entitlements, notice period, and compensations.

Can an employee request contract conversion to indefinite-term?

If one of the seven cases mentioned in Article 98 applies, the contract automatically becomes indefinite-term without need for request.

What happens if work continues after contract expiry?

If both parties continue implementing the contract after its term expires without explicit renewal agreement, the contract is considered indefinite-term.