Fixed Term Employment

Posted in Human Resources Terms, Total Reads: 1173

Definition: Fixed Term Employment

Fixed Term Employment is a type of contract where employment is specified for certain period or for certain task, upon accomplishment of which, the contract of employment gets terminated. The one who agree for this contract is called as Fixed Term Employee.

This is in accordance with the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002.During the term of the employment, contract can’t be terminated by the employer except for the reasons based upon unsatisfied performance,serious or wilful misconduct etc.

Fixed term agreements are generally short term employment agreement and is rarely for more than a year. Legally, there is no obligation for any company to offer permanent employment to fixed term employees but if company or organization wishes, it can proceed with it.

Workers aren’t termed as fixed term employees if

  • Their contract is not directly established with the company
  • They are a student/trainee for internship or such sort of placement
  • They are member of armed forces


Consider a company named ABC Ltd. which is presently working on a project for its big client. Assume that there are 5 employees working in the project but suddenly an employee takes maternity leave. In order to continue the project, ABC Ltd. hires a new employee, Mr. PrabhuKiran, for 6 months and he is completely briefed with the agreement in written. He is also stated that after 6 months, company doesn’t reserves the guarantee for giving him permanent employment and should not expect the same. So this type of agreement is called as Fixed Term Employment and the new employee, Mr. PrabhuKiran, can be called as Fixed Term Employee.

Hence, this concludes the definition of Fixed Term Employment along with its overview.


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