Fixed term agreements

When a fixed term employment agreement can be used.

You and your employee may agree that their employment agreement will end on a specific date, when a specific event occurs, or at the end of a specific project as long as all three of these conditions are met:

  • There are genuine reasons, based on reasonable grounds, for doing so.
  • You have told the employee when or how the employment will end and the reasons why.
  • The employee's agreement states in writing the way the employment agreement will end and the reasons for ending the employment in that way.

If you do not meet all three of these requirements, the employment relationship can be considered permanent.

You cannot use a fixed term agreement to set a time period to assess whether the employee is suitable for permanent employment.

If you want to continue to employ the employee at the end of a fixed term agreement you must sign a new employment agreement with them.

Last reviewed: Has this been useful? Give us your feedback