What is a fixed term contract?

Fixed Term contracts - for Employers

There may be times when it's best for your business to take on somebody on a fixed-term contract. This is one which either:

Lasts for a specified time, set in advance Ends with the completion of a specified task or ends when a specified event does or does not take place

For example, if you're a shopkeeper you may want to take on someone for just three months to cover the busy run-up to Christmas. Or you may wish to employ someone specifically to cover for someone who is on maternity leave.

Pros and cons

Fixed-term contracts give you the advantage of bringing in specific skills and labour as and when they are needed.

It's important to remember that unless there are special circumstances that can be justified, you must treat fixed-term employees the same as comparable permanent employees. This means you must give them:

- the same pay and conditions
- the same or equivalent benefits package
- the same or equivalent pension scheme
- the same opportunity to apply for vacancies for permanent posts in the business

Fixed-term employees also have access to the similar employment rights as their permanent equivalents.

Fixed Term contracts - for Contractors

If you are offered a fixed term contract then it can be a great opportunity in terms of security and peace of mind in knowing that you have an income or gurantee of work for a specific length of time.

Be careful that you do not accept a contract if it could interfere with other work committments. ie. if you accept a part time contract it may limit your ability to plan other work around it.

Take advice from recruitment agents or from other sources to find out how much opportunity is available before accepting. Also be aware that if you accept a long term fixed contract that you may effectively be treated as a permanent employee in terms of workloads and working hours, this may not be what you the type of flexibilty you want longer term.