Let us take this example: the contracting parties A and B enter into an agreement that grants Party A the right to extend for two years. Part A decides to exercise this right for four years and stops. Labour law, fixed-term employment contracts must be written. Although there are unenform requirements for indeterminate contracts, labour law provides that employment contracts must be written for a certain period of time. Moreover, under Article 12 of labour law, a worker who works with fixed-term employment contracts, without any grounds for discrimination being justified, cannot be treated differently from the one preceded by a fixed-term employment contract, solely because of the length of the employment contract. After Gallagher/ACC Bank, Baker J. renounced participating in the “artificial exercise of distinguishing between contractual rights and decoupling contract and in fact unlawful rights.” It concluded that the principal and principal claim in this case was a right to a violation of the agreement to sell a machine, a contract and under the provisions of the Property Sale Act in 1893 and 1980. Fixed-term employment contracts can expire in three ways; automatically, after the parties agree and by denunciation. The contract automatically expires in two ways. The first route is the death of an employee. The contract automatically expires after the worker`s death, because in employment contracts, personality and personal characteristics are important.
The second route is the end of the contract term. As a feature of employment contracts, they automatically expire after the expiry of the contract period without any other process of the parties. Another reason for the expiry of the employment contract is the agreement of the parties. A contract may expire after the parties agree, whether or not the contract is concluded for an indeterminate period. The third reason for the expiry of the contract is termination. Any party may terminate the contract immediately if there are valid reasons for some time before the expiry of the period set out in the employment contract. Increasing mechanization, new production systems and labour needs in technology development can create different types of labour relations between workers and employers. One of the most important species is that of employment contracts between workers and employers for a period of time. As a result, employment contracts may be entered into for a specified period of time if the contracts meet the conditions of labour law. Employers may have the opportunity to avoid possible redundancy and its costs, as well as employment security provisions, by signing a fixed-term employment contract to meet their needs.