The term of the labor contract is one year or three years, and the most obvious difference is the probation period.
For a one-year labor contract, the probation period shall not exceed two months;
For a three-year labor contract, the probation period shall not exceed six months.
The three-year labor contract has a high probability of early termination or termination, and the termination cost of the party who terminates the contract is high.
For one-year labor contracts, the probability of early termination and payment of higher termination costs is low.
According to Article 19 of the Labor Contract Law, if the term of a labor contract is more than three months but less than one year, the probation period shall not exceed one month; If the term of the labor contract is more than one year but less than three years, the probation period shall not exceed two months; The probation period of a labor contract with or without a fixed term of more than three years shall not exceed six months. The same employer and the same worker can only agree on one probation period.
A probation period may not be stipulated in a labor contract whose term is to complete a certain task or whose term is less than three months. The probation period is included in the term of the labor contract. If the labor contract only stipulates a probation period, the probation period shall not be established, and this period shall be the term of the labor contract.