Is it valid to automatically extend the employment contract after it expires in advance?
Summary:The principle of automatic extension of the employment contract is valid, but it can only be automatically extended once.
1. Effect of the automatic extension clause upon expiration of the labor contract
The Labor Contract Law stipulates that upon the expiration of the employment contract, the employer must renew the written employment contract with the employee within the statutory period. If the employer fails to enter into or renew the contract within the time limit, it shall pay double the salary.
In practice, in order to avoid the legal liability for failing to renew the employment contract in a timely manner after expiration, the employer will stipulate in advance the automatic extension clause after the expiration of the employment contract. The law does not stipulate whether such an agreement is valid, but the signing of the clause is a true expression of the intention of both the employer and the employee, and because the clause does not violate the mandatory provisions of laws and regulations, in practice, it is generally determined that the clause is legal and valid, and it can be regarded as the renewal of the written contract between the two parties.
2. Application of the clause on automatic extension of labor contracts in practice
1. If the contract only stipulates that the employer and employee will continue to perform according to the original contract, but does not specify the period of automatic extension of the contract, the automatic extension clause will generally be deemed to have entered into an indefinite labor contract between the two parties.
2. If the contract not only stipulates that the employer and the employee shall continue to perform according to the content of the original contract, but also specifies the specific period of automatic extension of the contract, such as the automatic extension of one year, the automatic extension clause at this time will generally be deemed to be the second time that the two parties have entered into a fixed labor contract with a period of one year.
When the automatic extension period also expires, the automatic extension clause of the contract cannot be applied again, and the employer and employee need to choose whether to renew the written employment contract or terminate the employment contract.
Declaration:The content in this article is my personal opinion and is for informational purposes only and does not constitute legal advice or advice. In view of the lag of legal provisions, the dynamic nature of practical cases, and the characteristics of different localities issuing their own policies at different times, it is recommended to analyze specific problems, and if you encounter relevant problems, please feel free to consult.
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