Fixed Term Contract

on Wednesday, 20 August 2014. Posted in News

There remains confusion about the use of Fixed Term Contracts. Many organisations believe they can still be used as a trial period for employees. This is not an appropriate use of them – your contracts of employment should include a probation period and it is this probation period that comes into play if an employee is not performing in first three months of their employment. A Fixed Term contract needs to relate to a specific purpose – it is an agreement between an employer and employee that a particular job will be for a set time period or until a certain event occurs or a defined project is completed. There needs to be a genuine reason for the fixed term contract and a clear agreement of when the contract will start and end.