10 questions you should ask yourself when it comes to temporary employment

Temporary employment may be the best solution for your company - and provide the necessary predictability and flexibility. The consequences of having an employee on an invalid basis can be that the employee becomes entitled to permanent employment and that the company has to pay compensation. That's why you should be aware of the main rules for temporary employment. Here you will find answers to the most frequently asked questions!

1. In what cases can I agree on temporary employment?

Companies are permitted to enter into fixed-term employment agreements in the cases that are positively stated in The Working Environment Act §14-9. The most frequently used cases are:

• Work of a temporary nature
• Temporary position
• Practical work
• Without specific justification, on a general basis

Temporary employment on a general basis is a controversial rule that was introduced a few years ago. Companies now have the opportunity to hire temporarily, without having to have a specific reason. The intention may be that you are unsure of your company's staffing needs and want to use this rule to see how increased staffing affects productivity or turnover.

2. What do I need to know about temporary employment on a general basis?

You can employ a maximum of 15 percent of your workforce on such an agreement. You are allowed to round up the quota so that the company can have one employee on such an agreement, even if the total number of employees is too few to fall below 15 percent. You should also be aware that this rule is limited to a maximum of 12 months.

If you do not offer the employee permanent employment after the expiry of the contract period, the company will now have a quarantine period. In that case, the company must wait 12 months before a new temporary employee can be hired for similar tasks.

3. When can I call my employment a temporary position?

The term temporary worker is actually used incorrectly in a number of companies. You can only call an employment a temporary position when the employee is actually working instead of one or more other employees.

Of course, the most common type of substitute is to cover for a specific employee, for example in connection with a leave of absence. You can also hire summer temps to fill in for various employees who go on vacation during the vacation months. It's not the case that the substitute has to perform exactly the same tasks as the person they're filling in for, but it must be clear beyond any doubt that the substitute position has been created to replace someone else.

4. Which companies are allowed to hire summer help?

We can distinguish between summer temps who substitute for employees who are on vacation, and summer help that comes as a supplement to regular staffing. To meet the requirements for summer help, your company must have a time-limited period of need for extra labor due to increased workload.

Summer help in an outdoor restaurant is the best example of such a valid reason. The fact that there has been an increase in turnover and it is uncertain whether this trend will continue over time does not justify the use of temporary employment, as there is no time-limited need. In such cases, companies can consider temporary employment on a general basis.

5. Can I use temporary employment to test if the employee works?

A number of companies think that temporary employment is a means of avoiding being stuck with an employee who is not working. If you enter into temporary employment in such cases, it will most likely be on a general basis. In such cases, the rules for quotas and quarantine periods come into play.

Instead, you should establish a system for following up on permanent employees during their probationary period. By establishing simple routines for follow-up during the probationary period, you'll get new employees up to speed quickly and put an end to any bad hires in a good way.

6. How long can a temporary employment last?

This depends on the reason for the employment. If it is on a general basis, the maximum limit will be 12 months. A temporary position must be terminated when the person being replaced is back at work. If the reason is of a temporary nature, this will be when the project or task is completed or the season is over.

As you can see, you can agree on a fixed end date for the employment relationship or state that the end date is when the project is over.

7. I've heard that a temporary employee may be entitled to permanent employment - is this true?

Yes, when an employee has been on one or more temporary contracts over the past 3 or 4 years, they will be considered a permanent employee. The 3-year limit applies to temporary positions and on a general basis (combination), while the 4-year limit applies to employment due to temporary needs.

When you cross these boundaries, the employee will have the same rights as other permanent employees. It is also the case that in most cases, you will be required to provide permanent employment where the reason for the temporary agreement was not valid.

8. Do we have to give notice when the contract period is over?

If the agreement has a clear end date, you do not need to provide further notice. At the same time, there are rules for notification when the employment has lasted more than 12 months. In such cases, notice of the termination date must always be given at least one month in advance. If no such notice is given, the employment relationship will continue until notice is given and for one month thereafter.

9. Can I use a standard employment contract for these positions?

Yes, you should, but you need to add certain points in addition to the general agreement used:

• Write that this is a temporary agreement
• Refer to the specific reason for the agreement, temporary work, temporary need, on a general basis
• Be clear about when the agreement ends, either the exact date or when the specific assignment is completed

10. What about notice periods for temporary employees?

It is possible to dismiss the temporary employee before the contract expires. The rules for termination are then the same as for other terminations, either due to the employer or the employee's circumstances. This means that terminating a temporary employee before the agreed time is not an easier process than for other employees. All employees are entitled to the same predictability for their employment relationship.