Labor contract as intermediate between employer and employee: types, stages, terms and conditions

In his practice lawyer has to deal with legal formalization of many contracts. The labor contract governing the manager-employee relationship is leading in this list.

In case of disputes and insurmountable differences between the parties to the labor contract, this document will help defend the rights of either party in the court.  Often the conflict is exhausted precisely on the basis of provisions contained in the labor contract.  There should be a competent expert responsible for its content.

Only correctly formulated terms and conditions of the contract will help make the case in the court. Therefore, the qualified assistance of our experts will be very useful.

Трудовий договір як посередник між роботодавцем і працівником: види, етапи і умови укладення

Types of labor contracts

Diversity of labor contract types complicates the independent development of regulations on labor relations.  Contracts are classified according to certain attributes:

Validity period

On this basis, labor contracts can be:

  • fixed-term;
  • unlimited term.

Contracts of the first type have a date of termination, and of the second type – don’t. Accordingly, in the first case the contract will loose its force at the end of validity period.   Examples of such contracts may be temporary work contract or temporary replacement of an employee. In the second case, the contract can be terminated as per request of either party.

Nature of labor relationship

Contracts are divided into:

  • primary employment;
  • secondary employment.

The first implies that employee stays in the workplace during the whole working day, and this is reflected in his employment record. Secondary employment can be internal and external.  The first is an additional employment with the same employer.  The second implies presence of another employer.

ATTENTION: Important!  Labor contract should not be confused with the civil law contract.  The latter does not contain such details as position, salary, working time, or dates of wage payment. In terms of duration, this contract won’t be long.  In addition, such contract does not provide for paid vacation or sick leave.

Employer type

Signatory to the labor contract with physical person can be:

  • individual entrepreneur;
  • physical person;
  • lawyers and private notaries;

• other persons whose activities are subject to state registration.

Stages in contract conclusion

Conclusion of the labor contract can be conditionally divided into three stages:


Here, the parties to future labor relations visually represent each other and take a number of steps to confirm their intention to sign the contract.  For the employee, it will be provision of the necessary documents, for the employer – familiarization of the future employee with the normative documents, collective agreement and internal code of conduct.

Drafting and signing labor contract

This is the most important stage, where help of a qualified lawyer is required.  The contract should contain all terms and conditions for its conclusion, as well as details of the parties.  The document is made in two copies and signed by both parties. Based on the contract, employer issues an order on specialist employment.

Start of labor relations

This stage begins right on the date specified in the labor contract.  If the start date for work is not defined, it is understood that employee’s duties commence the day after the signature date of the contract.

Contract terms and conditions

Labor contract shall contain the following information:

  • Full name of employee and name of employer;
  • Passport data of a physical person and individual tax number of an individual entrepreneur;
  • Information about the employer’s representative who is authorized to sign the labor contract;
  • Date and place of contract.

With regard to terms and conditions, document shall include information about:

  • Place and date of commencement of service;
  • Labor role of employee and terms of payment;
  • Time schedule for work and rest;
  • Amount of compensation for work in hard or hazardous conditions;
  • Data on mandatory health insurance of the employee.

If the contract does not contain all the necessary information, it might not be a ground for its invalidation.  It just needs to be added with missing information.

Our experts will not only save your time by developing provisions of the labor regulations covering all necessary conditions, but will also analyze the existing documents for entering the missing information therein.

Grounds for the contract termination

Termination of the labor contract can be employee- or employer-initiated.

Voluntary termination of the contract

In this case, the employee shall notify the employer in writing fourteen days before the proposed resignation date.

Employer has the right to cancel the contract in the following cases:

  • liquidation of the company;
  • staff reduction;
  • change of ownership;
  • inconsistency with the position;
  • repeated employee’s failure to perform.

The manager may also unilaterally terminate the employment relationship if the employee showed up for work intoxicated with alcohol, committed theft or absenteeism, or committed other serious offenses.

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