Different types of Contracts of Employment apply, depending on the employment status of the employee.
You will need to correctly determine the employment status of the person you’re hiring before creating and issuing an employment contract.
There are 4 main types of Contracts of Employment:
- Permanent Contract of Employment (aka Contract of Indefinite Duration)
- Fixed Term Temporary Contracts
- Fixed Purpose Temporary Contracts
- Casual Workers Contracts
Permanent Contract of Employment
Permanent contracts of Employment apply to employees who are hired for an indefinite period of time.
These contracts are ongoing until terminated by either the employee or the employer.
The contract can be for full time or part time hours and employees on these contracts are entitled to the full range of statutory employment rights.
A Permanent Contract of Employment is also known as a Contract of Indefinite Duration because it has no end date.
Fixed Term Temporary Contract
A Fixed-Term Temporary contract is only appropriate if the position is for a fixed-term. This contract has a start date and an end date so is issued for a specific period of time, for example six months or one year.
You may want to consider this type of contract if you’re looking for cover for a specific period of time.
Fixed Purpose Temporary Contract
A Fixed Purpose Temporary contract is for a specific purpose e.g. to cover maternity leave or other statutory leaves. This contract has a start date and the end date. The end date is when the specific purpose come to a close e.g. when an employee returns from maternity leave.
Both Fixed Term and Fixed Purpose Contracts are temporary contracts, with a start date and an end date.
There is a limit of four years on the length of successive fixed term or specific purpose temporary contracts with the same employer. After that an employee automatically becomes a Permanent Employee if their employment is not terminated.
Casual Worker Contract
A Casual Worker Contract has no fixed hours or fixed attendance arrangements.
It operates on the basis that there is no obligation on the Employer to offer work and no obligation on the Worker to accept any work offered.
However, these workers are employees, for employment rights purposes.
With Simple HR Online you can create and download your Contracts of Employment and Employee Handbooks as you need them, and they will always be compliant with current employment legislation. When you purchase a license, you can create and download up to 25 Contracts of Employment (any combination) and your FREE Employee Handbook. Here is the link: simple-hr-online.
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