Why deciding on the contract type matters before you hire

The contract you sign someone under influences the notice period, the probation rules, and how hard it is to end the working relationship. Get the type wrong and you either overcommit on day one or expose the company to a reclassification claim down the line. Poland, Lithuania, Latvia, and Estonia each define contract types slightly differently, so a template that works in one market can create a legal gap in another.

Poland

Polish labour law recognises three main employment contract types.

Trial period contract: This contract is limited to three months. Can only be used once with the same employee for the same role, with narrow exceptions tied to fixed-term follow-on contracts.

Fixed-term contract: This contract is capped at 33 months total, and you can have no more than three consecutive fixed-term contracts with the same employer. Once either limit is crossed, the contract automatically converts to an indefinite contract.

Indefinite contract: This is the default long-term structure. Termination requires a stated reason and, depending on tenure, a notice period of two weeks, one month, or three months.

Poland also permits civil law contracts (umowa zlecenie, umowa o dzieło) for independent work, but using one where the working relationship looks like employment is exactly the misclassification risk regulators have been tightening enforcement around.

Lithuania

Lithuanian law defaults to indefinite-term contracts. Fixed-term contracts are allowed but restricted to specific situations, such as temporary or seasonal work, and generally capped at two years including renewals. The probation periods can run up to a maximum of three months and must be agreed in writing at the start of employment.

Latvia

Latvia follows a similar pattern. Indefinite contracts are the norm and fixed-term contracts require objective justification (seasonal work, a specific project, covering an absent employee) and are capped at five years, including renewals, before conversion to indefinite status. Probation is limited to three months, extendable in narrow circumstances such as sick leave during the trial.

Estonia

Estonia also defaults to indefinite contracts. Fixed-term agreements are permitted for temporary increases in workload or project-based work and are capped at five years in total, including consecutive renewals. Probation is capped at four months, the longest of the four markets.

Side-by-side comparison

What this means in practice

None of these rules are complicated on their own. What gets companies into trouble is applying a Polish template in Estonia, or assuming a probation clause that worked for one employee will hold for the next hire in a different country. An EOR drafts the contract under the local law for each of the countries, so the probation length, the fixed-term justification, and the notice period are correct from the start rather than something that needs to be fixed later.

FAQ

Can I use the same employment contract template across Poland and the Baltics?
No. Each country has its own statutory requirements around probation, notice, and fixed-term limits. A shared template will miss at least one of them.

What happens if a fixed-term contract exceeds the legal cap?
In all four countries, it converts to an indefinite contract by operation of law, regardless of what the paperwork says.

Do trial periods need to be stated explicitly in the contract?
Yes, in all four markets. An unstated or vague probation clause is generally treated as not applying, meaning full termination protections apply from day one.

Ready to hire in Poland or the Baltics with a contract that matches local law from day one? Contact us here