Fixed Term Contracts May Require a Second Look
Fixed term employment contracts are a practical management tool for various reasons including the completion of short term projects or replacement of a permanent employee on leave. However, employers often use successive fixed term agreements for another reason – to avoid notice or severance obligations upon termination of employment. Such misuse can have significant impacts on employees. For example, indefinite term employees are entitled to statutory notice of termination and, in the absence of express language, reasonable notice at common law. Fixed term contracts end at the conclusion of the specified term with no notice required.