FAQ: What Is Fixed Term Employment?

What does fixed term mean on a job application?

A fixed-term contract is an employment agreement between an employer and employee that lasts for a specified amount of time. You may be on a fixed-term contract if you work as a seasonal or casual employee for a set period of time, are taken on as a specialist employee for a project or are covering for maternity leave.

Does fixed term mean permanent?

An employee on a fixed term contract for 4 or more years (continuous service) will automatically become a permanent employee, unless you can show a good business reason not to do so.

How long can you be employed on a fixed-term contract?

An employee can be kept on successive fixed-term contracts for a limit of four years. If your contract is renewed after that you become a permanent employee unless the employer can show a good reason why you should stay on a fixed-term contract.

Can fixed-term contracts become permanent?

Any employee on fixed-term contracts for 4 or more years will automatically become a permanent employee, unless the employer can show there is a good business reason not to do so.

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Do you get holidays on a fixed term contract?

Employees start to accrue annual leave entitlement from the moment they join a company. For those on a fixed-term or fixed hours contract, both full and part-time, they accrue holiday monthly in advance at a rate of one-twelfth of their annual entitlement.

Do fixed term employees get benefits?

In the fixed term contract the employer will state where benefits such as pension, medical aid, provident fund, any group life assurance facility, etc are applicable or not applicable.

What happens when my fixed term contract ends?

Ending a fixed term contract is a dismissal The end of a fixed term contract will normally be a fair dismissal if the reason the contract needed to be fixed term was genuine, the work or funding has ceased and the employee was fully aware of this.

Is fixed term contract good?

One of the predominant pros of fixed term contracts is that they can be very useful to cover a period of maternity leave or long term sick leave. It may also cover a job where funding has been provided to undertake a specific task. A fixed term contract may cover some seasonal work.

Is Ending a fixed term contract a dismissal?

The expiry of a fixed-term contract is a dismissal and fixed-term employees will have unfair dismissal rights after being employed for two years. In some circumstances, a fixed-term employee can bring a claim for automatically unfair dismissal, which does not require two years’ service.

Do fixed term employees get annual leave?

Fixed-term contract employee rights are largely the same as those of permanent staff. This includes annual leave, sick leave, and personal or carer’s leave. Fixed-term employees receive minimum wages as outlined by the National Employment Standard (NES) or industry award.

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What are the reasons for a fixed-term contract?

Fixed Term Contracts are given by employers on the basis that the contract will terminate at a future date when a specific ‘term’ expires – e.g. the completion of a particular project or task, the occurrence or non-occurrence of a specific event (covering for an employee who’s on sick or maternity leave, for example).

Should I apply for a fixed term job?

The Advantages of a Fixed Term Contract. A fixed-term contract offers valuable experience. It can also be an added bonus for your CV when looking for a permanent role. In some cases a permanent position can be offered at the end of your fixed-term contract. You can sometimes earn more money with a fixed term contract.

How many times can you renew fixed-term contract?

Renewal of fixed-term contracts Employees cannot be employed on a series of fixed-term contracts indefinitely. If an employee whose employment started on or after 14 July 2003 has been employed on 2 or more continuous fixed-term contracts, the total duration of those contracts may not exceed 4 years.

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

Fixed-term employees have the same entitlements as a permanent full-time or part-time employee. Their employment differs from that of permanent employees in that the contract is for a fixed-term (e.g. 12 months) or for the duration of a specific project as opposed to an ongoing employment arrangement.

Do fixed-term contracts pay more?

In some cases, a fixed-term employee may be paid more than permanent staff, either because of their special skills, or to compensate for the temporary nature of the job. If you have worked for one month or longer, you are entitled to receive a weeks’ notice period from the employer.

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