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Q:
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What is an open-ended labor contract?
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A:
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An open-ended employment contract is an employment contract with no definite termination date agreed upon by the employer and the worker.
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In what cases should a company sign an open-ended labor contract with an employee?
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A:
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Under any of the following circumstances, if the worker proposes or agrees to renew or conclude an employment contract, the worker shall conclude an open-ended employment contract in addition to the worker's proposal to conclude a fixed-term employment contract:
The worker has worked at the employer for ten years continuously;
When the employer first implements the labor contract system or re-establishes the labor contract through restructuring of a state-owned enterprise, the worker has worked in the employer for ten years continuously and less than ten years before the legal retirement age;
If the labor contract is concluded for two consecutive fixed terms and the worker does not have the circumstances stipulated in Article 39 and Article 40, Paragraph 1 and Paragraph 2 of the Labor Contract Law, the labor contract shall be renewed.
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Q:
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In addition to the above, what else would be considered an open-ended contract?
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If the employer does not conclude a written labor contract with the worker after one year from the date of employment, the employer is deemed to have entered into an open-ended labor contract with the worker.
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Once a company signs an open-ended employment contract with a worker, can the company no longer terminate the employment contract?
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After signing an open-ended labor contract, the company can no longer terminate the contract on the grounds that the labor contract has expired, but it can still terminate the contract in accordance with other termination provisions of the Labor Contract Law.
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Does the company have to accept the worker's request to sign an open-term employment contract after concluding two consecutive fixed-term employment contracts?
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This clause is implemented according to each local regulation. According to Shanghai's regulations, after a second consecutive fixed-term labor contract is concluded, an open-ended contract should be signed only if the enterprise also agrees to renew it. If the company does not agree to the renewal, the employment contract can be terminated.
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FAQ
