At a glance
- A working group has proposed changes to the Employment Contracts Act, expected to progress in autumn 2025.
- Fixed-term employment agreements may be signed without specific justification for first-time agreements or if the employee has been with the same employer for over five years.
- The maximum duration of these agreements would be 12 months, with the possibility of renewal up to twice within that period.
- The lay-off notice period may be reduced from 14 days to seven days, and post-employment re-employment obligations would apply only to employers with at least 50 employees.
- These changes are expected to come into effect on 1 January 2026, subject to government approval.
There are some significant changes proposed to the Employment Contracts Act that are expected to have progress during autumn 2025.
A dedicated working group has been established to prepare the expected changes, and has proposed that, in the future, a fixed-term employment agreement may be signed without a specific justification either when an employer and employee enter into their first employment agreement, or if the employee has been continuously employed by the same employer for more than five years. The total maximum duration of these agreements would be 12 months, with the possibility of renewal up to twice within that 12-month period.
Further, it is proposed that the lay-off notice period be reduced from 14 days to seven days. In cases of redundancy, post-employment re-employment obligations would apply only to employers with at least 50 employees.
The government’s proposal is expected in early autumn and subject to approval, the changes would come into effect on 1 January 2026. It is important to note that these changes will not affect equivalent provisions contained within collective labour agreements.
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