Dangers of Fixed Term Contract

A fixed term contract is a term used for an arrangement between an employee and an employer where the employee is hired for a limited period of time, often for a specific project. The danger with a fixed term contract from the perspective of a company is two-fold.

1. If you forget to renew the contract or end it when it’s supposed to end, and the employee continues to work, then the employee will have certain rights that the employer might not have intended when they initially hired the employee.
2. When the contract is repeatedly renewed for a lengthy period of time, there is a possibility of the contract turning into a non-fixed term contract or an indefinite contract and then the company may owe a considerable amount of severance to the employee.

If you are an employee on a fixed term contract and have reasons to believe that your contract has not been handled correctly, reach out to employment lawyers with expertise. We at Whitten & Lublin are happy to provide insight and advice into your specific circumstances. If you’re looking for employment lawyers and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 today.