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

A fixed-term contract is a contract between an employer and an employee that outlines the duration of employment and the conditions of employment, like salary and benefits. It is a contract that is agreed upon and signed by both the employer and the employee, and outlines a set amount of time in which the employee will work for the employer. A permanent contract is an indefinite contract that is entered into between an employer and an employee without an end date. This type of contract is typically renewable and the employee has the right to remain employed with the employer unless both parties mutually agree to terminate the contract. The conditions of the contract may change over time, including salary and benefits. The main difference between a fixed-term contract and a permanent contract is that a fixed-term contract has an end date, meaning that the employee will no longer be employed once the term has ended. With a permanent contract, there is no end date for the contract and, as long as both parties agree to remain in the contract, the employee will continue to be employed.

Related FAQs

Are deductions from wages allowed under employment contracts?
Are employers able to impose a probationary period on new employees?
What is a constructive dismissal?
Is an employer allowed to change an employee’s terms and conditions without their agreement?
Are employers allowed to dismiss employees on grounds of misconduct without giving them notice?
What legal remedies are available for a breach of employment contract?
Are employers allowed to dismiss employees on grounds of misconduct?
How can an employer end an employment contract?
Are employers allowed to require employees to work during public holidays?
Is an employer legally obligated to pay statutory sick pay?

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

Related FAQs

Related Blog Posts