What Is a Temporary Employment Contract?
A temporary employment contract is a legally binding agreement for short-term work. It protects both the employer and employee by outlining their rights and highlighting the worker’s duties and pay.
Legal Templates offers a contract template for your arrangement. Use it to hire an independent contractor for a short-term project or to test out a longer working relationship.
How Long Can a Temporary Employment Contract Last?
There is no legal definition of how long a temporary employment contract may last. According to the US Chamber of Commerce, a temporary employee generally works under 1,000 hours or one year for your company.
If your company still needs the employee after this period, consider offering them a permanent contract.
Suppose you have concerns about limited work hours while you employ a temporary employee. If this is the case, you can create a casual employment contract. A casual contract makes it clear that, on some occasions, there may not be a need for the employee to work. You can also clarify that when their work is needed, they must do so under the contract’s terms.
What Is the Difference between a Temporary Contract and a Fixed-Term Contract?
The main difference between a temporary contract and a fixed-term contract is whether they have specific end dates:
- Without a specific end date: A temporary employment contract does not have a specific end date. Casual, short-term, or self-employed temp workers are ideal for short-term needs or seasonal demands. They get paid hourly and submit timesheets weekly.
- With a specific period of time: A fixed-term contract has a predetermined end date and provides more commitment. It suits roles requiring a set period, like project work or covering maternity leave.
Both contracts have benefits like agility and access to talent. Employers must ensure they follow legal considerations and regulations for employee rights. While temporary employment contracts offer quick solutions, fixed-term contracts provide job security.
How to Write a Temporary Employment Contract
Writing a temporary contract helps you establish the terms for short-term work. The following information needs to be included in a temporary contract of employment.
1. Names of the Employer and Employee
Write the identifying information for the employer and employee. This ensures it’s clear who the contract is between.
2. Job Title and Description
This contract section is designed to set out the employee’s job responsibilities during their employment period. The exact level of detail will depend on the nature of the post and the level of seniority—more senior roles tend to focus more on outcomes rather than being process-driven.
When writing a job description for a temporary employee, it’s essential to consider their probable employment duration. Some outcomes may not be appropriate, as they are long-term goals.
Descriptors should be explicit and, ideally, measurable. Measurable descriptors make it easier to provide transparent performance assessments later on.
3. Financial Compensation
This may be a salary, a daily rate, or, in some cases, a set amount that covers a pre-agreed number of hours.
4. Work Pattern
You may wish to include the number of hours to be worked if applicable. Some temporary contract workers may only be required “as and when,” whereas others will be needed for a set number of hours each week.
If applicable, include expectations around the times of the hours to be worked (9 AM to 5 PM, for example), as well as expectations around weekend working, shift working, or working during the holidays.
5. Start Date
List the date on which employment with your organization starts.
6. The Term of Employment
Legally, there is no definition of a temporary contract; the conventional best practice is that it lasts no longer than a year.
It’s also considered best practice that if the worker is still required after completing their 12-month contract, the position is converted into a permanent position, and a permanent employment contract is drawn up and signed on that basis.
It is essential to stipulate how long the contract lasts – there needs to be a precise end date, after which the contract is no longer valid.
7. Temporary Employment Contract Notice Period
Stipulate how much notice your temporary employee needs to give before leaving your service. Typically, notice periods for temporary employees are less than those required for permanent employees.
8. Benefits
This covers any non-financial perks or benefits that temporary workers will enjoy. Typical examples include assistance with childcare, a subsidized canteen, paid vacation entitlement, and health insurance.
9. Confidentiality and Non-Solicitation Clauses
These clauses protect the employer by stipulating that the employee must not disclose confidential information about the organization to a third party and must not encourage other workers to leave with them if they leave the organization.
Protecting Your Business
If your company has sensitive information to protect, consider using a confidentiality agreement or non-disclosure agreement.
10. Work for Hire Clause
Prevent an employee in a short-term employment contract from taking products or information from the company and using them elsewhere.
11. Agency Provision
The employee signs to say they can’t enter into a written agreement on behalf of the organization unless they have obtained written consent.
12. Causes for Termination of Employment
This section sets out expectations around conduct in the workplace. It gives grounds for letting a temporary employee go if they aren’t performing or acting as expected.
Temporary Employment Contract Sample
This temporary employment contract sample provides a comprehensive temporary employment contract template PDF that can be customized to meet your organization’s specific needs.
