But the choice between contract and permanent work isn’t as clear cut. Limiting liability Many employers believe that, by placing their employees on fixed-term contracts and renewing them year to year, they are limiting their liability if they choose to terminate an employment. The only real difference between a Fixed-Term contract and a permanent position is that with a FT contract, the employer gets to decide annually whether they want to continue employing you or not for another 12-months. 3 pros of a contract job 1. acquire new skills and build your network. The use of fixed-term contracts does not prevent claims for permanent employment, writes James Seymour in the June Gazette. Here’s our guide. Contract work also often includes projects that need a specific skill set. Fixed-Term Employees A fixed-term employee, also known as a temporary employee, is a worker whose employment with your business will end on a specified date or when a particular event occurs. Let’s compare the benefits and advantages between contract and permanent jobs to help you decide. Let’s take a look at the differences between contract and permanent work, the pros and cons of each type of work, and a few often-forgotten considerations to see which is the best choice for you. Part Time Employment Contract. Thus, it is where employers fill permanent jobs with fixed-term employees that things go wrong. Employers are regularly confused about the difference between permanent, casual and fixed-term employees, and what kind of staff member they should have. Fixed-term contracts are often used by employers to provide certainty but with more flexibility than a permanent post. Apart from part-time and full-time positions, one of the major differences between types of employees is those who have permanent positions versus those who do contract work. The Fixed Term Employee Regulations apply to certain fixed term contracts, designed to prevent the less favourable treatment of fixed-term employees as compared to permanent employees. When you work with a new employer, you get the opportunity to do new work which may require new skills. The Difference between Permanent and Contract Employment. In so far as fixed term contracts relating to employees who earn more than the earnings threshold, the principle relating to the reasonable expectation that the fixed contract will be renewed or be made permanent will be applicable. Examples of hourly rate contracts are extended annual leave, short-term projects, and handover management between a permanent employee and a recruit joining the business. The distinction between fixed-term employment contracts and contracts of indefinite duration is an important one due to the great difference in the potential damage awards that are available to the employee in the event of possible litigation. So, what is the difference between a fixed-term and a permanent job? However, those Regulations have certain exclusions, including agency workers, students doing work experience, or an apprenticeship contract. Also, in the above scenario, the fixed-term employee would not expect the employer to put him/her on the company pension fund because, by nature, such funds are for long term employees. Permanent employee. Businesses use different types of employees to meet various labour needs. You treat them as permanent staff in terms of employment rights and obligations. Part time employees differ from full time fixed term and permanent employees. Hire a permanent employee for full-time or part-time work that needs to be performed on an ongoing basis. A fixed-term contract should only be used where there is a genuine need for the particular employee to be employed on a short term basis for a defined period. 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