A fixed-term employment contract is characterised by the parties agreeing on a specific end date for the employment relationship. Even though the end date is set in advance, in practice situations often arise that require the contract to be terminated earlier. Terminating a fixed-term contract with notice is subject to special legal rules that protect the interests of both the employer and the employee.
The Labour Code (Kodeks pracy) provides for different ways of terminating a fixed-term employment contract, depending on the circumstances and reasons. Each of them has its own specific conditions and legal consequences, which should be understood well before deciding to terminate the contract. Knowing these rules is essential for carrying out the termination procedure correctly.
Since 26 April 2023, the employer has been obliged to state the reason for terminating a fixed-term contract with notice. The reason must be true, specific and understandable to the employee, which is a significant change in labour law
Basic rules for terminating fixed-term contracts
A fixed-term employment contract can be terminated with notice, and the notice period is the same as for open-ended contracts. Its length depends on the total period of employment with the given employer, regardless of the type of employment contracts concluded (Article 36 § 1 of the Labour Code).
The system of notice periods is graduated to give more protection to employees with longer service. For the shortest period of employment, less than 6 months, the notice period is 2 weeks. This allows the employment relationship to be ended relatively quickly at the start of the working relationship.
When employment has lasted at least 6 months, the notice period increases to 1 month. This takes into account the fact that the employee has already settled into the job and needs more time to find new employment. The longest notice period, 3 months, applies to employees employed for at least 3 years.
Notice periods for fixed-term contracts are the same as for open-ended contracts. What counts is the total period of employment with the employer, regardless of the type of employment contracts concluded
It is worth stressing that all periods of work with the given employer are taken into account when calculating the period of employment, including those under earlier contracts. If the employee was employed under an open-ended contract and then concluded a fixed-term contract, these periods are added together when determining the notice period. From 2026 (for employers outside the public finance sector, from 1 May 2026), periods of contracts of mandate (umowa zlecenia) and of running a business during which the employee worked for that employer also count, if documented with a certificate from ZUS (Social Insurance Institution) (Article 302¹ § 8 of the Labour Code). Formal requirements, including the duty to give reasons for notice, are described in fixed-term contract notice rules.
Termination with immediate effect
The Labour Code allows a fixed-term contract to be terminated without notice. Such termination can be initiated by either the employer or the employee, but it requires specific legal grounds.
The employer may terminate a fixed-term contract with immediate effect under Article 52 of the Labour Code due to the employee's fault. This applies where the employee has committed a serious breach of basic employee duties. Examples of such breaches include theft, deliberate damage to the employer's property, a serious breach of work discipline or failure to comply with occupational health and safety rules.
The second way for the employer to terminate with immediate effect is governed by Article 53 of the Labour Code and concerns reasons for which the employee is not at fault. It covers only long-term incapacity for work due to illness (longer than 3 months where the employee has been employed for less than 6 months and, for longer employment, longer than the period of receiving sick pay and sickness benefit plus the first 3 months of rehabilitation benefit) or another excused absence lasting longer than 1 month. Organisational changes, economic difficulties or the elimination of a position are not grounds for termination without notice – at most, they justify termination with notice.
Termination with immediate effect requires specific legal grounds set out in the Labour Code. The employer must be able to prove the circumstances justifying such termination
The employee also has the right to terminate a fixed-term contract with immediate effect, but only in the strictly defined cases listed in Article 55 of the Labour Code. The first ground is a medical certificate stating that the work has a harmful effect on the employee's health, provided that the employer does not transfer the employee to suitable work within the specified time.
The second ground is a serious breach by the employer of its basic duties towards the employee. This may include failure to pay wages, violation of the employee's dignity, failure to pay benefits due or creating working conditions that endanger health or safety.
The duty to state the reason for termination
A significant change in labour law came into force on 26 April 2023, introducing the obligation to state the reason for terminating a fixed-term contract with notice. This rule put fixed-term contracts on an equal footing with open-ended contracts in terms of the formal requirements for termination.
The reason for termination must meet three basic criteria. First, it must be true – it cannot be sham, invented or used to hide the employer's real motives. Giving a false reason may lead to the termination being found unjustified and expose the employer to legal consequences.
Second, the reason must be specific – it should clearly indicate why the contract is being terminated. General wording such as "for organisational reasons" or "due to the company's situation" may prove insufficient. The employer should state precisely which specific circumstances led to the decision to terminate the contract.
The reason for termination must be true, specific and understandable to the employee. General wording may be considered insufficient and expose the employer to a claim that the termination was unjustified
Third, the reason must be understandable to the employee. This means the wording should be clear and precise enough for the employee to understand easily why their contract is being terminated. Complicated legal or business terms that may be unclear to the average employee should be avoided.
Examples of correctly formulated reasons for termination include organisational or economic changes in the company, such as the elimination of a specific position, staff reductions in a particular department, or financial problems requiring lower personnel costs. Reasons relating to the employee may concern unsatisfactory performance of duties, lack of commitment, repeated lateness or errors at work.
Delivering the notice
The legal effectiveness of a notice of termination depends on proper delivery of the declaration to the employee. Under Article 61 § 1 of the Civil Code, applied in labour law under Article 300 of the Labour Code, notice is deemed to have been given when it reaches the employee in such a way that they could read its content.
In practice, this means that simply sending the notice is not enough – what matters is that the employee could actually read it. The most common method of delivery is handing the notice to the employee in person at the workplace, with an acknowledgement of receipt signed by the employee. This gives the employer proof of the moment of delivery and limits legal doubts.
Problems may arise when the employee refuses to accept the notice. In such a situation, the employer cannot force the employee to accept the document, but should document the attempted delivery for evidence purposes. An effective method is to send the notice by registered letter with acknowledgement of receipt to the employee's home address.
Notice is deemed delivered when the employee could read it. If the employee refuses to accept it, the employer should document the attempted delivery by registered letter
The form of the notice is also important. Under Article 30 § 3 of the Labour Code, notice of termination of an employment contract should be given in writing. Informing the employee orally of the intention to terminate the contract is not enough – such notice breaches the rules on terminating contracts, and the employee can successfully challenge it before the labour court (Article 45 § 1). A written notice should contain all the required elements, including the reason for termination and information on the right to appeal to the labour court (Article 30 § 4–5).
When sending notice by registered letter, it is worth remembering that, according to the case law of the Supreme Court, a registered letter containing the employer's declaration that has been notified twice (awizo) creates a presumption that the employee could read its content (judgment of 5 October 2005, I PK 37/05). An uncollected letter is then, as a rule, deemed delivered when the collection period expires, not on the day it was posted – unless the employee proves that they could not read the letter. This protects the employer against situations in which the employee deliberately avoids collecting mail.
Employee rights during the notice period
The notice period is a special time during which the employee has additional rights to make it easier to move to a new job. One of the most important concerns annual leave. The employee is obliged to use the leave they are entitled to if the employer grants it during the notice period.
The decision to grant leave during the notice period rests with the employer and is discretionary. The employer may decide to grant leave, but may also pay the employee cash in lieu of the unused leave days. The choice between these options depends on the company's organisational needs and the situation of the particular employee.
The right to time off to look for a job is particularly important. It applies to employees who have been given notice by the employer, if the notice period is no shorter than two weeks (Article 37 § 1 of the Labour Code). The number of days off depends on the length of the notice period and is strictly set out in the law.
The right to time off to look for a job applies only where notice has been given by the employer and the notice period lasts at least two weeks. The employee uses it on request, and the employer cannot refuse it
The time off to look for a job is as follows:
- Two working days – with a notice period of two weeks or one month
- Three working days – with three-month notice, including when shortened under Article 36¹ § 1
These days off are paid, and the employee keeps the right to remuneration for this time. The employer cannot refuse these days if the employee has submitted the appropriate request. It is worth remembering, however, that this right is optional for the employee – they may use it but are not obliged to.
Practical aspects of terminating contracts
In business practice, terminating a fixed-term contract requires careful preparation and consideration of many legal and organisational aspects. Employers should pay particular attention to documenting the reasons for termination, especially where they relate to the employee's performance of duties.
Where the reason for termination relates to the employee's unsatisfactory performance, the employer should document the problems with the person's work in advance. This may include written reprimands, notes from work meetings, error reports or other documents showing problems with the performance of work. Such documentation will be essential in the event of a legal dispute.
Organisational or economic changes as a reason for termination also need to be properly documented. The employer should be able to demonstrate the real circumstances justifying the need to terminate the contract, such as a fall in orders, financial problems, organisational restructuring or the elimination of certain positions.
A manufacturing company had to reduce its workforce because orders fell by 40%. The employer terminated the fixed-term contracts of employees in the production department, stating as the reason "a significant fall in orders requiring a 30% reduction of employment in the production department". Such a specific reason meets the legal requirements of clarity and detail.
The timing of the notice is also important. The employer should remember that if the notice period would expire after the date for which the contract was concluded, the contract will end earlier anyway – on expiry of the period for which it was concluded (Article 30 § 1 point 4 of the Labour Code). Notice therefore only makes sense if it is given early enough for the notice period to expire before the original end date of the contract.
Documenting the reasons for termination is crucial for the employer's legal protection. This is particularly important for terminations related to the employee's performance or to organisational changes
Differences between ways of terminating a contract
Understanding the differences between the individual ways of terminating a fixed-term contract is fundamental to applying the relevant rules correctly. Each has its own specific grounds, procedures and legal consequences, which should be understood well.
Termination with notice is the most frequently used way of ending a contract. Its characteristic feature is that it does not require special statutory grounds – the employer may terminate the contract for a real reason that justifies termination, provided that it states the reason and observes the appropriate notice period (Article 30 § 4, Article 45 § 1). This method gives the employee time to prepare for a change of job and find new employment.
Termination without notice due to the employee's fault is a sanction and may only be used in the event of a serious breach of employee duties. The employer must be able to prove the employee's fault and that the sanction is proportionate to the act committed. An employee whose contract is terminated in this way is not entitled to severance pay and may be liable for the damage caused.
| Method of termination | Notice period | Required grounds | Consequences |
|---|---|---|---|
| With notice | 2 weeks – 3 months | Stating the reason | Severance pay only for reasons not attributable to the employee (employer with at least 20 employees) |
| Without notice (fault) | Immediate | Serious breach | No severance pay |
| Without notice (no fault) | Immediate | Long-term illness or absence (Article 53) | No severance pay under the Act on Collective Redundancies |
| Mutual agreement | Any | Mutual consent of the parties | As agreed |
Termination without notice for reasons for which the employee is not at fault applies only in the situations listed in Article 53 of the Labour Code, i.e. long-term incapacity for work due to illness or another excused absence lasting longer than 1 month. Liquidation of the employer or a declaration of bankruptcy are not grounds for termination in this way – in such situations the employer terminates contracts with notice, and severance pay is governed by the Act on Collective Redundancies (consolidated text, Journal of Laws (Dz.U.) 2026, item 1195, Articles 8 and 10).
Termination by mutual agreement is the most flexible way of ending a contract, allowing the terms of ending the employment relationship to be set individually. The parties can agree on any termination date, the amount of severance pay, how leave is settled and other matters related to ending employment. Calculating severance pay and pay in lieu of unused leave when employment ends is covered by our HR and payroll services.
Protection against termination
Labour law provides special protection against termination for certain groups of employees. This protection is intended to secure the position of people in special personal or professional situations who need additional job stability.
The broadest protection applies to pregnant employees and employees on maternity, paternity or parental leave (urlop rodzicielski or urlop wychowawczy). The employer may not terminate the fixed-term contract of a pregnant employee with notice – this is possible only if the employer is declared bankrupt or liquidated, and termination without notice due to the employee's fault requires the consent of the company trade union representing her (Article 177 § 1 and 4 of the Labour Code). This protection lasts until the end of maternity leave (or paternity or parental leave – from the day the application is submitted). A fixed-term contract that would end after the third month of pregnancy is extended until the day of birth (Article 177 § 3), except for a contract concluded to replace an absent employee. The general procedure, step by step, is set out in the employer's guide to terminating an employment contract.
Employees on sick leave are also specially protected. The employer may not terminate the contract with notice of an employee who is temporarily unable to work due to illness, if the incapacity has been confirmed by a medical certificate. The protection lasts during sick leave until the period entitling the employer to terminate the contract without notice has expired (Articles 41 and 53 of the Labour Code).
Protection against termination covers pregnant employees, people on maternity and parental leave, and employees on sick leave. A breach of this protection may result in the termination being declared ineffective
Trade union activists are also protected – members of the company trade union indicated by a resolution of its board. Terminating the contract of such a person requires the consent of the board of that organisation, except in the case of the employer's bankruptcy or liquidation (Article 32(1) of the Trade Unions Act, consolidated text, Journal of Laws (Dz.U.) 2026, item 549). If the employee is represented by a company trade union, before giving notice – since 26 April 2023 also for a fixed-term contract – the employer notifies the union of the intention and the reason for termination, and the union may raise objections within 5 days (Article 38 of the Labour Code).
Employees of pre-retirement age are also protected, although the protection is not absolute. The employer may not terminate the contract with notice of an employee who is no more than 4 years away from reaching retirement age, if their period of employment allows them to acquire the right to a pension on reaching that age (Article 39 of the Labour Code). The protection does not apply, among others, if the employer is declared bankrupt or liquidated (Article 41¹) or once the employee has acquired the right to a disability pension for total incapacity for work (Article 40). Nor does it protect against a fixed-term contract ending on expiry of the period for which it was concluded.
Consequences of incorrect termination
Carrying out the termination procedure for a fixed-term contract incorrectly may have serious legal and financial consequences for the employer. The most common mistakes are failing to state the reason for termination, giving an untrue or vague reason, breaching the delivery rules and failing to respect protection against termination.
If the employee considers the termination unjustified, they may appeal to the labour court within 21 days of the notice being delivered (Article 264 § 1) and demand that the notice be declared ineffective or, after the contract has ended, reinstatement or compensation (Article 45 § 1). For fixed-term contracts, because of their temporary nature, compensation is more often awarded than reinstatement – only compensation is available if the term for which the contract was to last expired before the judgment or if little time remained until it expired (Article 45 § 2).
Compensation for unjustified termination of a fixed-term contract ranges from 2 weeks to 3 months of remuneration, and not less than remuneration for the notice period. If the contract term expired before the judgment, or reinstatement would be inadvisable because only a short time remained until it expired, compensation is due for the period until the contract was to last, but for no more than 3 months (Article 47¹ of the Labour Code).
- Failure to state the reason for termination or giving an untrue reason
- Breach of the procedure for delivering the notice to the employee
- Termination of the contract of an employee who is legally protected
- Failure to respect the statutory notice periods
- Failure to give notice in writing
Unjustified termination of a fixed-term contract may result in an obligation to pay compensation of 2 weeks' to 3 months' remuneration, and not less than remuneration for the notice period. If the contract term has already expired, the compensation covers the period until its end, at most 3 months
In addition, the employer may have to cover the costs of court proceedings and, if the court reinstates the employee and they return to work, pay them remuneration for the period of unemployment: as a rule, for no more than 2 months, or 1 month where the notice period was three months; specially protected employees (for example, under Articles 39 and 177) are paid for the whole period (Article 47 of the Labour Code). These additional costs can significantly increase the total amount the employer has to pay.
Alternative ways of ending the contract
Apart from termination with notice, there are other ways of ending a fixed-term contract that in some situations may be more beneficial for both parties. Termination by mutual agreement is the most commonly used alternative, allowing the terms of separation to be set flexibly.
Termination by mutual agreement requires the employer and the employee to agree to end the contract. The parties may agree on the termination date, the amount of any severance pay, how unused leave is settled and other matters related to ending employment. The main advantage of this solution is that the terms can be tailored individually to the situation of both parties.
Termination by mutual agreement does not require a reason and is not subject to the restrictions arising from protection against termination. An employee may end the contract in this way even while on sick leave or maternity leave. The Labour Code does not require an agreement to be in writing (Article 30 § 3 concerns termination with and without notice), but it is worth putting it in writing for evidence purposes.
An employee on a fixed-term contract received a job offer from another company, but her contract still had 4 months to run. She proposed to the employer that the contract be terminated by mutual agreement with one month's notice. The employer agreed, and the parties agreed on payment of half of the remuneration for the remaining period as compensation. This solution was beneficial for both parties.
Another way of ending the contract is its expiry by operation of law. This happens when circumstances arise that make it impossible to continue the employment relationship, such as the death of the employee (Article 63¹), the death of an employer who is a natural person – with exceptions, including where succession management is established (Article 63²) – or the employee's absence from work due to pre-trial detention lasting 3 months (Article 66 of the Labour Code).
Reaching retirement age or acquiring the right to a pension, on the other hand, does not cause an employment contract to expire. A fixed-term contract, in turn, ends on expiry of the period for which it was concluded, without the need to give notice (Article 30 § 1 point 4).
