{"id":204213,"date":"2021-03-25T17:31:13","date_gmt":"2021-03-25T04:31:13","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=204213"},"modified":"2021-03-30T18:46:07","modified_gmt":"2021-03-30T05:46:07","slug":"benefits-fixed-term-employment-contract","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/employment\/benefits-fixed-term-employment-contract\/","title":{"rendered":"What Are the Benefits of a Fixed-Term Employment Contract in NZ?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">A <a href=\"https:\/\/legalvision.co.nz\/employment\/fixed-term-contract\/\">fixed-term employment<\/a> contract is where a worker joins your business for a certain period of time. Fixed-term employees are like permanent employees in every way except that their employment will end at a particular point. For instance, when <\/span><span style=\"font-weight: 400\">a project is complete or <\/span><span style=\"font-weight: 400\">another employee comes back from parental leave.\u00a0<\/span><span style=\"font-weight: 400\">There is a range of benefits that a fixed-term employment arrangement can offer businesses at different stages of their growth. This article will set out:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what a fixed-term employment contract is;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what some of the benefits are; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">some of the disadvantages to bear in mind.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">What Is a Fixed-Term Employment Contract?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">A fixed-term employment contract is also known as a temporary employment contract or fixed-term agreement. It provides for a fixed duration of employment for a new worker and the reasons for this arrangement. In New Zealand, the default employment arrangement is permanent. Therefore, <a href=\"https:\/\/legalvision.co.nz\/employment\/fixed-term-agreements\/\">to validly use<\/a> a fixed-term employment contract, you must be able to show that there is a genuine reason based on reasonable grounds for the fixed-term.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Businesses should treat an employee on a fixed-term contract in almost every way like a permanent employee. They have all the employment rights and obligations associated with being a permanent employee. As implied by the name, the key difference is that a fixed-term employee\u2019s employment will end on a particular date when the fixed-term is over. Fixed-term employees cannot make a claim for unjustified dismissal if they leave your business when their designated fixed-term has ended.\u00a0<\/span><\/p>\n<div class=\"box box--border-line\">\n<p><span style=\"font-weight: 400\">By virtue of their flexibility and utility in a number of different settings, fixed-term contracts can offer significant benefits.<\/span><\/p>\n<\/div>\n<h2><span style=\"font-weight: 400\">Benefits of a Fixed-Term Employment Contract<\/span><\/h2>\n<p><span style=\"font-weight: 400\">One benefit of a fixed-term employment contract is the ability to cover a particular time period when you know that your business will be short or otherwise needing the additional capacity, but where that need will end shortly afterwards. There is a range of examples of this in practice.\u00a0<\/span><\/p>\n<div class=\"box box--info box--icon\">\n<p><span style=\"font-weight: 400\">For instance, your business may work in an area that is particularly seasonal (like a ski field) or where there are predictable surges in demand (a decoration store before Christmas). In these circumstances, a fixed-term employment contract would be beneficial to get extra workers in to help meet that demand. Then, you would not necessarily need to keep that person on your payroll when you only need a smaller team.<\/span><\/p>\n<\/div>\n<p><span style=\"font-weight: 400\">There are also other advantages to fixed-term employees. They may be able to bring new skills and experiences that your current team or workforce do not have the skills for. If there is a particular project that would be good to complete for your business\u2019 growth, a fixed-term employee might be perfect to come in and work until that project\u2019s completion. This is particularly useful if you do not have existing staff who have the skills to do that project (for instance, if it is technical or requiring experience with that work in the past).\u00a0<\/span><\/p>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div 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Because their contract is time-limited, they are not permanent staff members. Therefore, it can be harder to build a cohesive team with significant turnover from fixed-term staff. You also need to make sure that you have a genuine reason for having an employee on a fixed-term contract. It would not be valid, for instance, to use a fixed-term contract as a kind of trial for a prospective employee to see how they perform in the role.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">There is a range of benefits in using fixed-term employment contracts in your business. Fixed-term employees can bring skills and experience that your existing staff may not have. A fixed-term arrangement also offers flexibility when your business may need it, such as to cover parental leave or a predictable surge in seasonal demand. In this way, fixed-term employment contracts can be a helpful addition to workforce planning. However, it is sometimes better to hire great workers as permanent employees instead so that they can continue growing and contributing to your business. To find out more about fixed-term employment contracts, contact <\/span><a href=\"https:\/\/legalvision.co.nz\/employment-lawyers-lp\"><span style=\"font-weight: 400\">LegalVision\u2019s employment lawyers<\/span><\/a><span style=\"font-weight: 400\"> on 0800 005 570 or fill out the form on this page.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1616646071153\"><strong class=\"schema-faq-question\"><strong>What is a fixed-term employment contract?<\/strong><\/strong> <p class=\"schema-faq-answer\">It is where a worker joins your business for a certain period of time. It provides for a fixed duration of employment for a new worker and the reasons for this arrangement.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1616646082973\"><strong class=\"schema-faq-question\">C<strong>an fixed-term employees claim personal grievances?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, they can. Fixed-term employees have the same rights and responsibilities as a permanent employee. However, a fixed-term employee cannot raise a personal grievance just because their employment ends at the end of their fixed-term (as this was the basis of their employment arrangement).<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1616646094022\"><strong class=\"schema-faq-question\"><strong>What are the benefits of a fixed-term employment contract?<\/strong><\/strong> <p class=\"schema-faq-answer\">A fixed-term employment contract can offer your business flexibility when it needs it. There are additional workforce planning possibilities when you have access to employees for a certain period of time &#8211; such as to cover a particular project or vacancy.\u00a0\u00a0<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"ed19fd34f0\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/204213\" \/>            <input value=\"https:\/\/legalvision.co.nz\/employment\/benefits-fixed-term-employment-contract\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Are the Benefits of a Fixed-Term Employment Contract in NZ?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A fixed-term employment contract is where a worker joins your business for a certain period of time. Fixed-term employees are like permanent employees in every way except that their employment will end at a particular point. For instance, when a project is complete or another employee comes back from parental leave.\u00a0There is a range of<a href=\"https:\/\/legalvision.co.nz\/employment\/benefits-fixed-term-employment-contract\/\">Continue reading <span class=\"sr-only\">&#8220;What Are the Benefits of a Fixed-Term Employment Contract in NZ?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13235,"featured_media":53,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[5],"tags":[25,54,109,308,369,411],"class_list":["post-204213","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-medium-business","tag-employment-contract","tag-personal-grievance","tag-fixed-term-agreement","tag-fixed-term-contract"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Benefits of a Fixed-Term Employment Contract | LegalVision NZ<\/title>\n<meta name=\"description\" content=\"There are a range of benefits that a fixed-term employment arrangement can offer businesses. 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Matt previously worked as an employment lawyer in a top-tier firm in New Zealand, and now works at the University of Auckland as a Research Fellow in the Faculty of Law.","sameAs":["anthony.lieu@legalvision.com.au"],"url":"https:\/\/legalvision.co.nz\/author\/mattbartlett\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/employment\/benefits-fixed-term-employment-contract\/#faq-question-1616646071153","name":"What is a fixed-term employment contract?","acceptedAnswer":{"@type":"Answer","text":"It is where a worker joins your business for a certain period of time. It provides for a fixed duration of employment for a new worker and the reasons for this arrangement.\u00a0","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/employment\/benefits-fixed-term-employment-contract\/#faq-question-1616646082973","name":"Can fixed-term employees claim personal grievances?","acceptedAnswer":{"@type":"Answer","text":"Yes, they can. Fixed-term employees have the same rights and responsibilities as a permanent employee. However, a fixed-term employee cannot raise a personal grievance just because their employment ends at the end of their fixed-term (as this was the basis of their employment arrangement).","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/employment\/benefits-fixed-term-employment-contract\/#faq-question-1616646094022","name":"What are the benefits of a fixed-term employment contract?","acceptedAnswer":{"@type":"Answer","text":"A fixed-term employment contract can offer your business flexibility when it needs it. There are additional workforce planning possibilities when you have access to employees for a certain period of time - such as to cover a particular project or vacancy.\u00a0\u00a0","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/204213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13235"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=204213"}],"version-history":[{"count":5,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/204213\/revisions"}],"predecessor-version":[{"id":204296,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/204213\/revisions\/204296"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/53"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=204213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=204213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=204213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}