HR Glossary

Fixed Term Employment

Fixed term employment refers to a type of employment that has a specified start and end date: where an employee agrees to work until a specified end date or at the completion of a project.

what-is-fixed-term-employment

Definition of Fixed term employment

Fixed term employment refers to a type of employment that has a specified start and end date: where an employee agrees to work until a specified end date or at the completion of a project.

Project management positions are often counted as fixed term employment arrangements, while workers who have contracts with agencies and not the companies they work for are not fixed-term employees.

Pros and cons of fixed term employment

Fixed term contracts can be very useful in cases when company needs to cover another employee’s parental or long service leave or to hire an employee for the exact length of a particular project.

But fixed term contract can not be terminated before its nominated expiry date which can cost the company more.

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