What is the difference between a fixed-term and an indefinite-term contract?

In Virginia, there are two types of contracts that dictate the terms of employment: fixed-term and indefinite-term contracts. Fixed-term contracts are those which set a specific start and end date for the employment period. The end date cannot be changed or extended unless both parties agree to amend the contract. With these contracts, employers know they will not be responsible for providing employment after the designated end date, and employees know that their employment will not continue beyond the agreed upon end date. Indefinite-term contracts, on the other hand, can be terminated by either the employer or the employee, at any time and for any reason. In these cases, either party may decide to end the agreement, with or without the other party’s consent. Employees are not secure in their job for any specific length of time and employers can change their policies or terminate employees at any time. In Virginia, fixed-term contracts are the most common form of employment contract and are usually used for temporary employment or seasonal positions. Indefinite-term contracts are more appropriate for long-term employment and are used for permanent, full-time positions. It is important for employers and employees to understand the terms and provisions of these contracts in order to ensure that their rights and obligations are properly defined.

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