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

Fixed-term contracts and permanent contracts are both types of employment contracts in California. The main difference between these two types of contracts is the duration of the contract. A fixed-term contract (or FTC) is a written agreement between an employer and employee that outlines the rights and responsibilities of both the employer and employee. The contract states the terms of employment, including job duties, hours of work, wage rate, and duration of the contract. The duration of a FTC is set for a set period of time that is agreed upon by both parties—once the set period is done, the contract will expire and the employee is not obligated to stay with the employer. On the other hand, a permanent contract is a written agreement between an employer and employee to keep the employee in their job indefinitely. It outlines the rights and responsibilities of both the employer and employee in the same manner as a FTC, however the agreement does not set an expiration date. These types of contracts are usually offered to more experienced employees who have a longer history of good performance and loyalty to the employer. In summary, a fixed-term contract is an agreement between an employer and employee for a specific period of time, while a permanent contract is an agreement for an indefinite amount of time.

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

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