6 Reasons why permanent employees should consider a fixed-term contract

In today’s ever-changing job market, the traditional concept of a lifelong, permanent job is transforming. Permanent employees increasingly recognise the value of embracing fixed-term contracts to enrich their careers. 

At the end of 2023, I decided to apply for a fixed-term job, transitioning from nearly two decades into a permanent role.

This marked a pivotal moment in my professional journey. Having navigated various departments during my 19 years, I found myself at a crossroads where the familiar routines, while comfortable, no longer fueled my professional growth. 

The realisation struck that, to break free from the plateau I sensed in my career, a change was necessary. The salary ceiling loomed, and the desire for fresh challenges and opportunities became undeniable.

As a project management professional, my passion for digital and tech beckoned me towards new opportunities. The decision to take on a fixed-term contract with another employer was a strategic move to align my career with my evolving interests. 

This shift wasn’t just about changing jobs but about embarking on a journey that promised professional development and a renewed sense of purpose.

What are the reasons why you should consider a fixed-term contract?

1. Diversifying your skills

Fixed-term contracts provide a unique avenue for skill diversification. By engaging in diverse projects and industries, employees can acquire new skills and experiences that may not be accessible in a permanent role.

2. Exploring different work environments

Variety is the spice of professional life. Fixed-term contracts allow employees to experience different company cultures, work structures, and team dynamics. This exposure not only fosters personal growth but also enhances adaptability, a crucial skill in today’s ever-changing workplace.

3. Consideration of a career change

For those considering a career change, fixed-term contracts offer a low-risk opportunity to explore new paths without committing to a permanent shift.

4. Expanding your professional network

Networking plays a pivotal role in career success. Fixed-term contracts open doors to diverse professional connections beyond one’s current workplace.

5. Increase in job security

When many of us face uncertainty, job security is a top concern, but taking a fixed-term job might assist in you securing a job where job security is more stable than your current role. 

This will be because of what I’ve already mentioned above around the skills that you will obtain in the new role, the opportunity to explore differing industries, increase your networking opportunities, and access to permanent positions that might not be advertised, aligned with your career aspirations with the new employer.

6. Increase in salary

When most of us could do with more money in our pockets, taking on a fixed-term contract offers the opportunity to increase your salary, not only in the fixed term but in the longer term due to the diversification of your skill 

What is a fixed-term contract?

A fixed-term contract is a role with a predetermined duration, specifying a start date and an end date, unlike a permanent contract, which typically continues until either the employer or employee decides to terminate it with notice.

How long do fixed-term contracts typically last?

The duration of fixed-term contracts can vary widely depending on the nature of the work, and industry practices.

Common durations for fixed-term contracts include:

Short-term 

These contracts may last for a few weeks to a few months. They are often used for temporary or seasonal work, specific projects, or to cover employee absences.

Medium-Term

These contracts typically extend from a few months to a year. They are common for project-based work, maternity or paternity cover, or roles with a defined timeframe.

Long-Term

In some cases, fixed-term contracts can extend beyond a year, especially in industries where longer project timelines or research initiatives are involved.

What rights do you have as an employee on a fixed-term contract?

As an employee on a fixed-term contract, you should be aware of your worker’s rights and entitlements, such as notice periods and any accrued holiday pay, as outlined in employment law and the terms of your contract.

Those on fixed-term contracts should be treated no differently than those on permanent contracts.

If you feel that you’re being treated unfairly because of your fixed-term status then there are several things that you could do. This includes:

How do you end a fixed-term contract?

Ending of a fixed-term contract can occur in several ways, depending on the terms outlined in your employment contract and the circumstances surrounding the termination.

Some common scenarios as to why a fixed-term contract might end, include:

• Contractual end date
• Notice period
• Mutual agreement
• Completion of the project

Can you get a mortgage on a fixed-term contract?

Yes.

So long as you can meet their lending criteria some lenders would give you a mortgage on a fixed term contract.

If as a permanent employee, you dealt with sorting out your mortgage, when transitioning to a fixed-term contract and looking for the right mortgage a mortgage broker might be able to help you with this.

Are you entitled to maternity/paternity leave on a fixed-term contract?

Yes.

As of writing, being on a fixed-term contract shouldn’t affect your right to maternity or paternity leave so long as you meet the eligibility criteria to receive it.

Is it worth taking a fixed-term contract?

The decision of whether it’s worth taking on a fixed-term contract is one that only you are positioned to answer and will depend not only on your career aspirations but your circumstances too.

The grass isn’t always greener, so if you are purely leaping because you feel unhappy in your role, this might be the right time to discuss with your employer ways in which you might get more from your current role, whether that’s through taking on more responsibility or taking on new training opportunities.

If you’re worried about making that leap to a new employer or sector, then use your network whether that’s personal or professional to find someone that you can speak to about the role that you would like to see yourself doing.

Remember, there’s not any job nowadays that is guaranteed, so take control of your career before the decision is taken out of your hands.