Types of employment contract: which to use in which situation?
Indefinite and fixed-term, full-time and part-time, on-call, probationary, remote and team contracts; written form, the ban on successive contracts and a decision table for choosing the right contract.
The Labour Law recognises different types of employment contract according to the employer's needs. Choosing the right type makes every later step, such as termination, compensation and insurance reporting, easier. The wrong type often ends, in a labour court, with the contract being treated as another type.
Decision table
| Your need | Suitable contract |
|---|---|
| A permanent position | Indefinite-term, full-time |
| A specific project, seasonal work, a temporary replacement for an employee on leave | Fixed-term (with an objective reason) |
| Certain days of the week or part of the day | Part-time |
| An employee to be called in when the work requires | On-call work |
| Regular work from home or outside the workplace | Remote work |
| The need to get to know a new employee | A probation period clause in any type |
Indefinite-term contract
This is a contract with no end date, and it is the general rule. If there is no objective reason needed to make a fixed-term contract, the contract is treated as indefinite-term whatever it is called. Job security, notice periods and severance pay apply in full to this type of contract.
Fixed-term contract
It can only be made on the basis of objective conditions:
- The existence of work of a fixed duration (e.g. a six-month project),
- The completion of a specific job,
- The occurrence of a specific event (e.g. the return of an employee on maternity leave).
Ban on successive contracts: unless there is a material reason, fixed-term contracts cannot be made more than once in succession. Otherwise the contract is treated as indefinite-term from the outset.
A fixed-term contract ends automatically at the end of its term; so notice pay does not arise. However, under the settled practice of the Court of Cassation, severance pay is paid when a fixed-term contract lasting at least one year ends on expiry. Template: Fixed-term employment contract
Part-time and on-call work
Made for employees whose weekly working time is up to two thirds of that of a comparable full-time employee. Pay and divisible rights are proportional to working time; SGK reporting is made on an hourly basis. Details: Part-time work
Remote work
This is where the employee does their work, within the work organisation set up by the employer, from home or from outside the workplace using technological communication tools. A written contract is compulsory: Remote work · Remote work agreement
Probation period
This is not a separate type of contract but a clause added to the contract: Probation period
Form requirement
- Fixed-term contracts lasting one year or more must be made in writing.
- Where no written contract is made, the employer must, within two months at the latest, provide a written document setting out the employee's general and specific working conditions, daily or weekly working time, pay and supplements, the pay period, the term if fixed-term, and the termination conditions.
- In practice, we recommend making every employment contract in writing, whatever its type. In a dispute, the written contract is the strongest evidence.
What must be written into the contract
- The identity and addresses of the parties, the start date of the work,
- Job description and place of work,
- Pay (stating clearly whether gross or net), payment date and benefits: Fringe benefits
- Working time, any averaging and consent to overtime: Working hours and averaging
- Probation period, confidentiality and any non-compete clause,
- Privacy notice on the processing of personal data: Employee KVKK privacy notice
Our related service: Employment contracts
Legal basis: Labour Law No. 4857 arts. 8, 9, 11, 12, 13, 14 and 15.