We often come across fixed-term contracts in our legal practice. Employers have varying reasons for wanting to use such agreements. Perhaps funding for an employee is tied to third party grants, or an employer wants to temporarily replace an existing worker during their period of maternity leave. Whatever the justification, we generally advise employers to think twice before using fixed-term contracts.

Most employment contracts operate for an indefinite period. Lesser seen are fixed term agreements. The latter are most often used in the context of a sale of business and in the not-for-profit sector (where funding is frequently tied to time-limited grants). Regardless of their underlying motivation, fixed term contracts come with significant risks for employers.