Fixed Term Contract
A fixed-term contract is a contract that runs from one specified date to another specified date. When the end date has reached, the contract (and thus the employment relationship) is terminated.
The duration of the contract is agreed in advance between the employer and the employee.
The “fixed-term” element can also be not a specified date or dates but can be specified as the completion of a specific project, the actual date of completion can be estimated.
A Fixed Term Contract can be used when:
- Replacing another employee who is temporarily absent from work;
- Employment due to a temporary increase in the volume of work, which is expected to last for less than 12 months;
- Seasonal work;
- The employee will be working exclusively on a specific project that has a limited or defined duration;
- The employee is a foreigner working on a work permit for a defined period;
- The position is funded by an external source for a limited period; and
- The employee is retained past the normal or agreed retirement age in the employer’s business.