Finance:Fixed-term employment contract
A fixed-term contract is a contractual relationship between an employee and an employer that lasts for a specified period that is determined in advance. These contracts are usually regulated by countries' labor laws, to ensure that employers still fulfill basic labour rights regardless of a contract's form, particularly unjust dismissal. Generally, fixed-term contracts will automatically be deemed to have created a permanent contract, subject to the employer's right to terminate employment on reasonable notice for a good reason. In the European Union the incidence of fixed-term contracts ranges from 6% in the UK to 23% in Spain, with Germany, Italy and France between 13% and 16%.[1]
By country
Due to the potential job insecurity that multiple fixed-term contracts may cause, employment laws in many countries limit the circumstances and the way these contracts may be used. In countries where labour law is more restrictive (compensation/indemnity for dismissal), the differentiation between fixed-term and permanent contracts tends to be clearly set out in law. Where employment legislation is less protective for the employee there tends to be a lesser degree of differentiation between fixed and permanent contracts.
Belgium
There are two possibilities to contract successive fixed-term contracts:
- Successive employment contracts with a maximum term of two years: A maximum of four successive fixed-term employment contracts, where the minimum duration of each contract is three months and the total duration of all the successive contracts is not longer than two years.
- Successive employment contracts with a maximum term of three years: With the prior authorisation of the Belgian Federal Public Service Employment, Labour and Social Dialogue, successive fixed-term contracts can be concluded with a minimum duration of six months if the total duration of all the successive contracts do not exceed three years.[2]
France
The maximum term is twenty four months and may be extended once only.[3]
Germany
Fixed-term contracts may not be extended more than three times with a maximum total period of two years.[4]
India
India allows fixed term employment since 2015. Fixed-term employees are entitled to wage and benefits on par with permanent employees.[5]
Luxembourg
In Luxembourg, the standard maximum length of a contrat de travail à durée déterminée (CDD) is twenty-four months, with up to two renewals allowed. Researchers and students can employed for a maximum of sixty months on a CDD, with no restriction as to the number of renewals allowed. A waiting period of a minimum of one-third of the length of the contract is required for a CDD to be considered a new contract (and not a renewal) and to restart the maximum allowed duration of employment.[6]
Saudi Arabia
Although both indefinite and fixed-term contracts exist in the country, foreign workers in Saudi Arabia must have a fixed-term contract; if the contract does not specify an end date, then the term automatically ends when the employee's work permit expires.[7]
United Kingdom
Any employee on a fixed-term contract for four or more years will automatically become a permanent employee, unless the employer can show there is a good business reason not to do so.[8]
See also
- Permanent employment
- Part-time
- Temporary work
References
- ↑ "Eurostat - Tables, Graphs and Maps Interface (TGM) table". europa.eu. http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init=1&language=en&pcode=tps00073&plugin=1.
- ↑ "Contrat de travail conclu pour une durée déterminée (CDD)". emploi.belgique.be. http://www.emploi.belgique.be/defaultTab.aspx?id=41992#.
- ↑ "Conditions de renouvellement d'un contrat de travail à durée déterminée (CDD)". service-public.fr. http://vosdroits.service-public.fr/particuliers/F38.xhtml#N100B9.
- ↑ "Befristeter Arbeitsvertrag oder Zeitvertrag". ArbeitsRatgeber. 6 October 2013. http://www.arbeitsratgeber.com/befristete-arbeitsvertraege/.
- ↑ "The Good and Bad Side of 'fixed-term Employment' Amendment". 21 March 2018. https://www.moneycontrol.com/news/business/economy/the-good-and-bad-side-of-fixed-term-employment-amendment-2532947.html.
- ↑ "Fixed-term employment contracts". 11 May 2021. https://guichet.public.lu/en/citoyens/travail-emploi/types-contrat-travail/contrats-travail/contrat-duree-determinee.html.
- ↑ Alsharif, Dimah Talal (2 May 2018). "Trouble with your work contract? Here's what you need to know". Arab News. https://www.arabnews.com/node/1295076.
- ↑ "Fixed-term employment contracts". www.gov.uk. https://www.gov.uk/fixed-term-contracts/renewing-or-ending-a-fixedterm-contract.
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