If the employee and the employer both agree at the start of the contract that the contract is going to end within a fixed period or when certain work is completed, then it is a fixed-term contract.

Contract employees and seasonal employees are two kinds of employees with fixed-term contracts.

It often happens, particularly on farms, that the employer goes to other areas to get people to work on the farm on a temporary basis. The employees then leave their homes and go to work on this farm. These employees may be referred to as contract employees. Usually the farmer and these employees have a fixed term contract for a specified time. If an employee has a contract with the farmer, then the conditions of that contract are the conditions of employment.

The conditions of the agreed upon contract may not be less favourable than those of permanent employees who perform similar work. Equal pay for equal work has become a large focus of the modern contract with laws as well as the courts emphasising its importance. Essentially, if employees work for three months or longer, they may not be treated on the whole less favourably than that of permanent employees. In certain industries, such as the retail industry, the three month period does not apply.

Some farms have times when extra employees are needed. These times are called seasons. If an employee only works on the farm for a season, then he or she is called a seasonal employee. The seasonal employee knows when the contract starts and when the contract ends.

For both contract employees and seasonal employees, the employer must pay employees for the full contract time, even if there is no more work for the employees to do. If an employee’s contract is for one year, then the employer must pay the employee for the full year, unless the contract ends because of the employee’s fault. If the contract is for one season, then the employer must pay the employee for the whole season.

The employer cannot stop the fixed term contract earlier than the contracted period unless the contract makes provision for this.