Execution of an additional agreement to extend the term of the contract

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An additional agreement on changing the duration of the contract is a document that is an addition to the previously drawn up

an agreement providing for a long-term relationship between the parties. The term of the contract can be changed based on several transactions. For example, a contract can be extended; another term for this operation is called prolongation or renewal. In addition, a one-time agreement can be drawn up, which creates new conditions for the participants and gives additional deadlines for fulfilling obligations. Also, some use renewal letters to change the duration of the contract.

Such procedures most often concern the renewal of contracts for:

• rental of premises;
• storage;
• purchase and sale;
• supply;
• agreement on the range of goods;
• contract and other long-term relationships or services.

An additional agreement cannot be drawn up in addition to a deed of gift or an exchange agreement. This is not necessary, so extension is not applicable here.

The extension of contracts applies not only to civil documents. For example, labor law provides for the conclusion of an agreement between an employee and an employer on the basis of an employment contract, which lasts for five years. Also, the validity of this document may be due to the onset of a certain period - the end of the working season or going on maternity leave. This type of agreement is called a contract. It may be extended by means of an additional extension agreement.

The renewal takes place in accordance with certain standards and norms. The addition to the document must be drawn up according to the model of the agreement to which this prolongation paper will relate. The additional extension agreement must include:

• the agreement is drawn up in writing;
• if certain changes are made to it, they must be registered with the same government agency as the agreement itself, especially for long-term lease agreements or the sale of real estate;
• if the agreement is certified by a notary agency, then the additional agreement to it must also be drawn up in a similar way and certified by an authorized lawyer.

The additional agreement does not have a long list of rules and requirements for its design. The agreement is drawn up in accordance with the minimum requirements. Standard document preparation includes:

• details of the parties;
• name of the agreement and its serial number;
• the validity period for which the document is renewed;
• a new date when the extended agreement comes to an end.

Letter of extension - as another way to change the duration of the contract

If both parties to the initially drawn up agreement included in its content a clause stating that correspondence between them will have legal force, then they can send each other letters, the content of which will confirm the legality of certain actions.

Thus, exchanging letters by mail or electronically can help resolve business relationships. Although a civil contract between the parties is drawn up for a pre-agreed duration, the relationship between the parties can be extended on the basis of such a letter.

The letter is not drawn up according to a strict template, so it is drawn up in free form; the main thing that should be indicated in its content is the contract number and the date of its signing. The text of the letter must set out the parties' desire to extend the previously drawn up agreement. A letter is considered certified when it is not us who bears the seal, which can be affixed by one of the parties to the drawn up agreement.

Some other ways to extend the contract include the possibility of renewal under the previously specified clause in the terms of the contract, on automatic renewal. This method is used to extend a lease agreement or other transactions between parties that relate to the provision of real estate or other type of property for a long period of use by another person. The contract can initially indicate that due to the absence of claims by the parties against each other, the terms of the contract are automatically extended. Thus, the contract is extended for the same period of time and under the same conditions. That is why the parties will not have to enter into additional agreements between themselves.

Automatic extension is also provided for by law. This method is very popular when concluding transactions based on the rental of property or real estate, water supply or supply of other types of resources, registration of tourist insurance, as well as issues of trust management.

How to extend it with a pregnant woman?

Let's remember once again what a fixed-term employment contract is. This type of relationship between the parties in the field of labor (boss and subordinate) is concluded for a certain period. The parties are not relieved of the need to comply with mutual rights and obligations. Thus, the manager provides the employee with working conditions, and he, in return, performs his function and follows the internal rules.

When the contract comes to an end, the parties may go their separate ways, or they may decide whether to continue their relationship or not. Of course, a positive choice must be documented.

It’s strange, but true, the Labor Code makes no mention of how an employment contract is extended. The chaotic articles scattered throughout the normative act give legal scholars an idea of ​​how this action can be implemented in practice. Our task is to understand how this procedure occurs.

Is it possible to extend a fixed-term employment contract with an additional agreement for a certain period? An employment contract that has a limited duration will soon lose its validity. But in some cases its extension is required, and there are a number of reasons for this:

1. The contract between the parties needs to be extended if the work for which the employee was invited has not yet been completed and cannot be completed without the person who got the job under a fixed-term contract.
2. The contract is renewed in a situation where both the employee and the employer are satisfied with the cooperation and want to form a long-term relationship.
3. The relationship continues in a situation where an employee performing a labor function under a fixed-term contract is pregnant (Article 261 of the Labor Code).
4. Contracts with university employees who were hired through competition for a specific position are being extended (Article 332 of the Labor Code).
5. The situation with athletes is the same as with teachers. Extension of the term of the employment contract is possible if the parties are satisfied with the cooperation (Article 348 of the Labor Code).

If the term of the relationship between the parties expires and the employer does not take action to renew the contract, then such an opportunity also does not depend on the employee. In a situation where the contract has already expired, it also cannot be extended. If the parties are committed to further cooperation, they will have to enter into a new agreement.

If an employment contract was concluded with a woman who, shortly before the termination of the relationship, became pregnant, unfortunately for the employer, such a contract is not cancelled. The legislator has provided for the possibility of protecting this category of workers by obliging employers to renew the contract until the end of pregnancy.

The contract is extended in accordance with Article 231 of the Labor Code. An employer cannot fire a pregnant woman until she wants to or until the period of maternity or care leave expires.

If an employee was hired for a temporary position to replace an absent employee, then the employer is obliged to offer her a new position, which she can accept or refuse. If there is a refusal of the new position, the relationship is automatically terminated.

More detailed information is contained in the article “Pregnancy during a fixed-term employment contract.”

The parties to an employment contract have the right to express their free will in forming labor relations at their own discretion. Termination of a document after a specified period is not an obstacle to productive cooperation.

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For example, for positions elected through competition, the contract cannot be renegotiated, but can be extended automatically upon re-appointment to the same elective position (Article 332 of the Labor Code of the Russian Federation).

Sometimes the rules and regulations of the law take into account the interests of a temporary worker, prohibiting the termination of employment. For example, in the case of a woman’s pregnancy (Part 2 of Article 261 of the Labor Code of the Russian Federation). The contract will need to be extended until the end of maternity or child care leave.

How to properly extend a fixed-term employment contract? According to Articles 58, 59 of the Labor Code of the Russian Federation, the extension of the period must be based on the same legal norms that govern the conclusion of a temporary contract:

1. if there are no grounds for limiting the employee’s terms, the employment relationship should be transferred to a permanent basis.
2. If it is not possible to register an employee permanently, if the reason is officially justified, temporary employment in the same or another position is extended.
3. In the absence of warning about the end of the term of performance of duties, the employment relationship is automatically preserved and transferred to a permanent basis.

ATTENTION: One month before the end of the employment contract period, the employee is officially notified of dismissal, against signature.

Extension of the term of a fixed-term contract is permitted subject to:

• availability of a vacancy;

• impossibility of transferring an employee to a permanent basis.

For example, if, after maternity leave, the main employee took out maternity leave for up to three years.

Or - production necessity required the use of the services of a temporary specialist further, for a commensurate period of time.

If the period for which the employee was hired has ended, and there are no further grounds for its extension, the contract cannot be extended. The same applies if a fixed-term contract has lost its force on the basis of the provisions specified in it, but there is a vacancy for a permanent position in the organization.

In such cases it is permissible:

1. renew the contract (if there is a vacancy);
2. create a new local temporary work document.

Depending on the circumstances, you need to pay attention to the nuances associated with the procedure for extending the work period. However, there are also general norms that are basic for all cases.

How to extend a fixed-term employment contract for an indefinite period? Such situations allow the use of one of the convenient options:

1. drawing up an agreement to cancel the dismissal date;
2. ignoring the date of dismissal.

Such cases are allowed when the deputy continues to work after the main employee leaves, without leaving after a long absence. Or - after the temporary vacancy becomes permanent.

That is, if the precedent for dismissal disappears, the employment contract will automatically become an open-ended one (Part 4

Art. 58 Labor Code of the Russian Federation

).

How to extend a fixed-term employment contract for a certain period? If you want to extend your employment contract for a specific period, do so before the end date of the contract. In accordance with Article 72 of the Labor Code of the Russian Federation, an agreement can be concluded between the employer and employee to change the terms of the employment contract in writing.

The text of this document must contain a provision that the parties have agreed to state the relevant clause of the employment contract in a new edition. In fact, only the end date of the employment contract will change.

We invite you to familiarize yourself with the Basic Terms of the MKD Management Agreement

It is important to keep in mind that, according to the general rule of Article 58 of the Labor Code of the Russian Federation, the duration of the employment relationship under a fixed-term contract should not exceed five years even after its extension, unless another period is established by law.

In order to extend the employment relationship with a pregnant woman, an official medical document is required from her.

Such a document can only be a pregnancy certificate issued by an antenatal clinic, certified by a doctor and the chief physician of the clinic, and the clinic seal. The certified gestational age must not be less than 12 weeks.

The employee brings this certificate to the employer and attaches it to a handwritten application in which she indicates: “I request the extension of the employment contract due to pregnancy.”

IMPORTANT: To renew the contract, the employee’s initiative in the form of an application and an attached certificate are required. Oral statements about pregnancy have no legal force.

After conscientiously registering her position, the employee has the right to expect that her position will be retained after the date of dismissal.

Under no circumstances should the employer let the situation take its course, otherwise the woman will remain on his staff indefinitely. After receiving the documentation, you need to issue an order: “Extend the validity of the employment contract until the end of the maternity leave.”

After giving birth, he will be able to fire her when the payment for the second (postpartum) sick leave is completed, and the young mother will be able to receive child care benefits from the social security service.

Registration of agreements and expired contracts

In legal matters, you can often encounter the question of extending the validity of an expired contract. This situation can be analyzed based on one striking example.

The parties have drawn up an agreement that will be valid until December 31, 2017. The parties did not indicate in the agreement that its validity extends until the fulfillment of all obligations assigned to the parties. In February 2020, the parties to the agreement decide to extend it for further supplies of goods. Can their decision have a legal basis?

In accordance with legislative norms, the parties have the right to decide that the conditions they set for each other are applicable even before the conclusion of the contract, but what about the additional agreement.

This type of document exists in direct connection with the drawn up contract. Therefore, if the agreement is recognized as valid, then, similarly, all additional agreements and annexes are considered valid until the expiration of the originally drawn up agreement between the parties.

If you follow this logic of things, it becomes obvious that the life or existence of an additional agreement directly depends on the existence of the main agreement, to which it is an addition. If the parties decide to draw up an additional agreement to the main agreement, then they must remember that the expiration of the additional agreement should not go beyond the expiration of the agreement.

Many are opposed to concluding additional agreements to treaties that have already expired. However, there are many subtleties in this issue. Therefore, some recognize the drawing up of additional agreements to treaties that have already expired. There are sufficient grounds for making such a decision, since state laws provide for the possibility of the existence of several documents that can prove the legality of the relationship between the parties. Thus, the agreement is not a single document. Based on this, the additional agreement can also serve as a kind of newly concluded agreement between the participants.

What does the additional agreement contain?

It is not difficult to create a document. The contract renewal document consists of a header, a main part and signatures of both parties. The upper part of the additional agreement is similar to the main agreement. It contains the same information, except for the date of signing.

Compiled in writing. It must contain the following information:

1. link to the main agreement, name, number;
2. date and place of drawing up the additional agreement (if more than one agreement is concluded, the number is indicated);
3. initials and positions of persons carrying out activities on behalf of the organization;
4. the item that needs to be changed;
5. date, signatures and seals of the parties (signatures are put by the same persons as in the original agreement);
6. information that the remaining terms of the primary contract, except for the terms, remain unchanged;
7. number of copies of the agreement (in this case, the number of documents will be equal to the number of parties signing the additional agreement).

Fulfillment of these conditions gives legitimacy to the document in question. In the future, an additional agreement will regulate the term.

Changes in the validity periods of contracts in business activities

This solution may be in demand by some when conducting business. However, it is important to remember that some pitfalls may appear here, namely: when making calculations, the accounting department will necessarily refer to the agreement to which this agreement was drawn up, and if the agreement has already expired, then it turns out that the transaction was made on an illegal basis.

As a result of this turn of events, there is the possibility of a tax benefit that has no basis. This means the emergence of an unjustified risk. Therefore, to avoid problems, it is best to avoid entering into an agreement under an expired contract.

For example, business partners can draw up an agreement that states that the contract for the supply of the ordered goods expires on December 31, 2017. This means that, according to the terms of the contract, its automatic extension is not permissible. Sometimes the parties decide to draw up an additional agreement for this agreement, which will become effective from 01/05/2018.

If the obligations of the parties have not been fulfilled, but the contract has already expired, then the parties can easily draw up an additional agreement on extension. This becomes possible on the basis that the parties, when entering into an agreement, receive certain rights and obligations. Upon expiration of the contract, their obligations are canceled. Therefore, if the terms of the agreement have not been fulfilled, then the parties can draw up an additional agreement that will help bring things to an end. Such an agreement has meaning and a legal basis for existence. It, in essence, extends the deadlines for fulfilling obligations that the parties did not have time to fulfill in relation to each other due to certain incidents.

Another common situation also concerns the supply agreement. For example, business partners have drawn up an agreement, the validity of which has come to an end. As soon as the agreement has lost its force, the parties to the agreement decide to sign a new agreement for the supply of goods or products. Will this specification serve as the basis for the legal extension of the contract and the implementation of the obligations of the parties?

To understand how this process occurs, it is important to understand the specification and the annex to the purchase and sale agreement.

The content of the specification usually always contains data on the contract for the supply of products. Also, conditions are almost always specified to the effect that the parties, in taking and performing actions, must be guided by the points that are indicated in the terms of the original agreement. However, if this document concerns an expired contract, then its value is canceled. Such documents no longer qualify for the renewal process by supplemental agreement.

The situation is different with the specification, the terms of which do not say anything about an overdue supply contract. Therefore, in this situation, the parties can freely enter into a one-time purchase and sale agreement between themselves. The remaining documents created on the basis of such an agreement will have a completely legal basis, and on the basis of this agreement an additional agreement on prolongation, or in other words, an extension, can be created.

In what cases is it not valid?

The legal force of a document is affected by several factors. When going to court, prolongation of a contract by attaching an additional agreement may be declared illegal in the following cases:

• termination of the obligations of the parties in the primary agreement;
• if one of the parties at the time of drawing up the additional agreement did not have the right to sign;
• if the additional agreement has not passed state registration (provided that the primary agreement has passed this procedure);
• if the additional agreement is not certified by a notary, and the main agreement is signed by him.

These are not all the reasons why this document may not have official significance. These will be the same as those that apply to the main agreement.

Mandatory conditions for drawing up an agreement regarding changing the duration of the contract

If the parties decide to make certain changes to the term of the agreement, then it is important for them to remember that the new document must necessarily contain specific information about the subject of the agreement, the terms and monetary payments. Some areas require a commercial contract to be drawn up as this is the basis. For example, mandatory documentary certification is required:

• provision or provision of services for storing products, as well as goods in warehouses;
• provision or provision of services for storing funds, precious metals, stones, historical or cultural values, objects of art in a bank, in a personal safe deposit box;
• delivery and receipt of goods and any products.

Very often, parties use an agreement that is valid for only one year. Such a document must indicate

a certain quantity of goods, the volume of products supplied, the amount of payment for supplies or services. If, after a year, the parties still want to continue cooperation on the same or slightly different terms, then they need to change the validity period of the agreement originally drawn up between them.

This method is used by most banking institutions. Bank employees always offer their clients to change the terms of use of services on the basis of an agreement drawn up with the bank. Most often, such contracts are extended if the client still wants to use his safe deposit box or other services.

Changing the validity period of contracts very often concerns the construction of real estate. Since few people can accurately predict deadlines and all kinds of emergency situations, it turns out that the customer may demand to change the validity period of the contract and related documents, and your contractor may need to carry out a similar operation if he feels the need for it.

Contract extension options

Each company, in agreement with the partner, has the right to extend the term of the agreement shortly before its expiration. The procedure depends on the text of the contract:

1. If it does not have the possibility of automatic renewal (prolongation), you must sign an additional agreement.
2. If there is such an opportunity, you don’t have to take any actions - then the contract will be considered renewed automatically. The agreement must contain appropriate wording, for example:

It is important to understand that the additional agreement is drawn up and signed during the period of validity of the main contract, and not after its expiration. If a document is overdue even by 1 day, it is necessary to sign a new document (the new text can be a copy of the old one, but the date must be current).

How to draw up an additional agreement?

The development of additional documentation requires compliance with established standards.

To avoid possible mistakes, you should focus on the established pattern:

Additional agreement
Since the agreement being drawn up will become an integral part of an already valid document, the information entered must fully comply

the original document. The signed agreement will act as an annex and, therefore, refer to previously recorded data. Thus, it is necessary to indicate when registering:

1. In the upper right corner, enter the number assigned to the Application and the base document for which it is provided. That is, the number of the main agreement and the date of its signing are indicated.
2. In the center of the sheet, enter the name of the document itself - “additional agreement”, its number, as well as a brief explanation of the specific type of contractual relationship.
3. All lines are filled in according to the sample
   , where it is mandatory to indicate not only the full name of each party with an indication of the person representing him, but also the organizational and legal form of the enterprise.

It is advisable to indicate and specify that:

• the document was drawn up by mutual consent of all parties involved;
• copies are received by: Customer, Contractor;
• the agreement comes into force
  from the moment of its bilateral signing.

Only one condition is subject to change, namely, the postponement of the end date. There is no need to copy all clauses (contents) of the contract.

Initiator of the procedure

The decision on how to extend the contract can come from both parties

(with mutual interest in continuing the partnership), and on the initiative of one of the participants. In the second option, the initiator of the extension sends a letter to the address of the second participant about the decision to extend the terms of cooperation. The extension of the contract, the wording of which was included in the contractual content initially, does not prohibit one of the parties from sending written notice.

Attention!

A letter confirming the intention of the sending party to prolongate is drawn up in free form.

Often, the renewal letter is sent along with a developed and completed form of the agreement itself. Thus, the receiving party will only have to agree, certify and sign the document, minimizing delays with documentation.

Legal basis

According to all legal norms, contracts are divided into two types according to their duration:

• is issued on a specific date, the fact must be written down in the document.
• is issued for a certain period after signing, for example, one year.

Oddly enough, the validity period is not a mandatory condition when drawing up a contract, except in some cases.

ATTENTION! If a clause with a term is not specified, this also applies to the additional agreement, then by default it is considered that it will terminate upon completion of the obligations of the parties.

Ultimately, citizens or companies have two options for the development of events:

1. make additional an agreement to extend a contract is a convenient measure when the terms of the document remain unchanged.
2. draw up a new agreement - used when the conditions change radically, or any clauses do not suit one of the parties.