What is a fixed-term contract? (FTC)

A fixed-term contract (often referred to as FTC) is an employment contract that has a defined end date. Terms can vary from company to company, but employees on a FTC, will usually be paid on a PAYE salary basis and enjoy the full permanent benefits package offered by the employer.

FTCs can be extended or made permanent at any point and usually last between 3-12 months.

Notice periods during a fixed-term contract can vary, but they are usually in line with the company’s permanent employment terms.

There are two main reasons that a company would take someone on a fixed-term basis as opposed to permanent:

  • Flexibility – The employer might want to have an extended probationary period, which the fixed term aspect would provide. After the initial contract term is up, they could review and decide whether to make the contract permanent, extend or let the employee go.
  • Budgets – The employer may wish to take someone on a short-term basis to cover for a certain piece of work they need to complete. The end-date may be governed by certain funds being available or if a project deadline needs to be met.

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