As the name suggests, fixed-term employment contracts are designed to cover a specific period of time. Unlike open-ended standard employment contracts, fixed-term contracts have an endpoint (whether a specific date or the point at which a project has been completed) upon which the employment relationship automatically ceases, unless a new agreement is reached. Some of the situations in which a fixed-term contract will be suitable include:
- seasonal work - where there is a peak period that requires more workers compared to off-peak times
- project work - when either a larger workforce is required to complete the project or the skills of specialist employees are needed for a limited time
- maternity cover - this is usually fixed-term but sometimes extended, often resulting in the fixed-term employee being taken on permanently
Agency workers, apprentices and students on a work experience placement are not considered to be fixed-term employees.