Fixed-term contract

A fixed-term contract is a term usually used to refer to a contractual relationship between an employee and an employer that lasts for a specified period. They are usually regulated by different countries' labour 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%.

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.

Any employee on fixed-term contracts 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.

Fixed-term contracts may not be extended more than three times with a maximum total period of two years.

The maximum term is twenty four months and may be extended once only

There are two possibilities to contract successive fixed-term contracts:

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