Employees are sometimes hired on fixed term contracts.

Fixed term means that the employee is employed for a specific period of time or task.

Example

Debbie runs a sewing machine repair business. She wants to employ Owen to create a database of all her customers. Once the project is finished, Debbie will not need Owen’s skills as part of her ongoing business.

Debbie offers Owen a fixed term contract that says that his employment will end when the database is finished.

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