Fixed Term Employment Contract

Fixed term employment contracts are common in the workforce and fall within the prevue of the U.S. Department of Labor ("DOL") and the U.S. Equal Employment Opportunity Commission ("EEOC"). The DOL enforces many of the EEOC laws that protect individuals in the workplace, including fixed-term employment contract workers. To qualify as a fixed-term employment contract, an employee must have a contract with a business that lasts only a defined period of time (i.e. it ends on a particular predetermined date or upon completion of a task). Fixed-term employment contracts are popular for seasonal employees who would for a certain number of moths during a peak season (i.e. holiday season in retail businesses). Specialist employees may be hired for one specific project in their area of expertise, or an employee may be hired to cover for a full-time employee who is on temporary leave (i.e. maternity leave or sick leave). A fixed term employment contracts ends upon the occurrence of a certain event (i.e. an employee returning from maternity leave) or when the specialist job is completed.

Fast Facts

  • Temporary employees who have a contract with a temp agency are not considered to be fixed-term employees. In order to have a fixed term employment contract the individual must have the contract directly with the employer, not with an intermediary agency.
  • Members of the armed forces are not considered fixed-term employees even though they may have a predefined exit date from the military.

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