An employment contract is a crucial legal document that binds an employer and an employee in a formal relationship. As a fresh graduate stepping into the professional world, it’s essential to familiarise yourself with two types of contracts you might come across: temporary and fixed-term. These can shape your career trajectory and your understanding of the employment landscape.
Temporary Contracts
Temporary contracts, often used to cover the short-term needs of a business, are employment agreements that last only for a specific period or until a specific task or event is completed.
Benefits and Drawbacks
Benefits: Temporary contracts provide graduates with the flexibility to try out different industries and roles without making a long-term commitment. This provides a valuable opportunity to gain diversified experience and develop a wide range of skills. Often, these roles can transition into full-time positions if you prove to be a valuable asset to the company. Read this guide to turning a job from temp to perm.
Drawbacks: Despite their flexibility, temporary contracts lack job security, and the scope of employment benefits might be limited compared to permanent roles. This could be a crucial factor to consider if stability is a top priority for you.
Opportunities for Graduates
Temporary roles can often be found in the form of internships, graduate schemes, seasonal roles and project-based jobs. These roles are prevalent in sectors like hospitality, retail, events management and even in corporate settings where projects are time-bound or additional resources are required temporarily. Read this guide to getting an admin job with zero experience.
Fixed-Term Contracts
On the other hand, a fixed-term contract is an employment agreement that lasts for a specific time period, predetermined by both the employer and the employee, often to cover long-term absences, cater to a surge in demand or manage a specific project.
Legal Considerations
Employees under fixed-term contracts lasting for a month or longer are entitled to the same rights as permanent employees. This includes but is not limited to, fair treatment, payment for holidays and redundancy payments. Employers are obliged to not treat fixed-term employees less favourably than permanent employees, as per regulations outlined on the GOV.UK website.
Advantages and Disadvantages
Advantages: Fixed-term contracts offer better job security than temporary contracts for the agreed duration, often with the same benefits as permanent contracts. This could include pensions, paid leave and opportunities for professional development.
Disadvantages: The downside is that once the contract term is completed, the employment ceases, which may result in periods of unemployment if a new contract or role isn’t readily available.
Opportunities for Graduates
Fixed-term contracts are often used for graduate programmes, research roles and teaching positions and to cover maternity or long-term leave. See these graduate job-hunting tips for more inspiration.
Key Differences Between Temporary and Fixed-Term Contracts
Both temporary and fixed-term contracts are time-bound, but they differ in terms of duration, flexibility, termination, rights, job security and potential for career progression.
- Temporary contracts are typically shorter and more flexible, offering variety in roles and industries but with less job security.
- Fixed-term contracts tend to be longer and provide greater job security but are less flexible.
Legal Framework and Regulations
Whether on a temporary or fixed-term contract, employees have certain rights. These include receiving the national minimum wage, statutory holiday pay and protection against discrimination.
Specific rights may vary based on the duration of the contract and the terms agreed upon with the employer. Government resources like GOV.UK and ACAS offer comprehensive guides on this topic.
Considerations for Graduate Job Seekers
When evaluating job offers, it’s vital to consider the following:
- The type of contract
- The contract length
- Your immediate and long-term career goals
- The role’s relevance to your intended career path
- The potential for career progression within the company
Keep in mind that transitioning between contract types is possible and is often a part of the journey of building a successful career. However, it’s important to make the right choice for you and your career, which may include turning down a job offer.
Make Informed Career Decisions that are Right for You
Understanding the differences between temporary and fixed-term contracts is fundamental to making informed career decisions. It’s crucial to read contracts thoroughly, understand your rights as an employee and seek professional advice when needed.
Always remember to leverage your University’s career services for guidance and make use of official government resources for any queries related to employment contracts. Your first contract, whether temporary or fixed-term, will be a significant stepping-stone towards achieving your career goals. Embrace the journey, and good luck, graduates!
About the author:
Auria Heanley is co-founder of Oriel Partners, a boutique PA and administrative recruitment consultancy based in Central London. She is extremely passionate about providing the highest quality of service to both clients and candidates. Oriel Partners help graduates looking for PA and administrative roles by matching excellent candidates to highly sought-after graduate roles.
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