Preliminary employment contract: rights and consequences

A preliminary employment contract appears when the parties want to “reserve” employment for the future but cannot yet sign the employment contract. For the employee it is a signal that the employer is determined; for the employer — that the candidate accepts the conditions. It is worth knowing what such a contract really means and what consequences it may have.

Update: 5 March 2026

In brief:

• A preliminary contract is not an employment contract, but it can create claims.
• Precise employment terms and the start date are crucial.
• Any conditions precedent should be described explicitly to avoid disputes.

What a preliminary employment contract is

It is an obligation to conclude an employment contract in the future on agreed terms.

Differences vs an employment contract

A preliminary contract is not yet an employment contract under labour law, but it can have legal effects, especially if the other party fails to perform the arrangements.

Elements and form of the contract

Employment terms and start date

For the contract to make practical sense, it should include at least:

• the parties,
• position and scope of duties,
• place of work,
• remuneration and its components,
• working time,
• planned start date.

The more precise the arrangements, the lower the dispute risk. If the terms depend on additional events (e.g., medical clearance or internal approvals), state this explicitly.

Most common mistakes

The most frequent problems are:

• no clearly described position and scope of duties,
• an imprecise start date,
• no clauses on conditions precedent,
• inconsistent information about pay and its components.

Checklist before signing

• confirm the position, scope of duties and place of work,
• clarify remuneration and working time,
• describe conditions precedent and withdrawal rules,
• set the start date and communication method.

Does a preliminary contract guarantee employment

No. A preliminary contract does not replace an employment contract. Its effectiveness depends on its content and circumstances. In practice it is an obligation that can be the basis for claims, but it does not always lead to actual employment.

Consequences of non‑performance

If one party refuses to sign the promised contract, damages claims may be available. Their scope depends on the contract and whether the other party incurred specific costs or lost other opportunities. In practice it is best to avoid vague clauses and set clear withdrawal rules.

Damages and contractual penalty

Damages depend on real losses and circumstances. A contractual penalty in employment relations is often questioned, so if it appears in the text it requires particularly careful wording and analysis.

Can a preliminary contract be terminated

Withdrawal and consequences

In practice the safest approach is to define withdrawal rules explicitly in the contract. Lack of precise clauses increases the risk of dispute over whether and on what terms a party may withdraw.

Conditions precedent and formalities

In practice preliminary contracts are often conditioned on medical examinations, internal approvals or budget confirmation. If so, describe it explicitly as a condition precedent. This way both parties know when the obligation becomes effective and when it may lapse without dispute.

How to draft clauses safely

The best protection is clear arrangements. In practice it is worth:

• describing the conditions for signing the employment contract,
• indicating whether changing the start date is allowed,
• defining how the parties should communicate in case of problems.

For broader context, see the guides on employment contract basics, fixed‑term employment contracts and notice periods.

Note: this text is for information only and does not constitute legal advice.