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Fixed-Term Employee

Updated on: October 14, 2026 Sneha Gondhale 1 min read

A fixed-term employee works under a contract with a set end date, unlike permanent staff whose agreements are ongoing. They usually get pro-rated benefits like leave and health coverage, but they may not get the same long-term perks, and their employment ends once the contract runs out.

HR departments typically hire fixed-term employees to cover temporary business needs, seasonal demand, or specific projects with a defined timeline. This kind of arrangement gives the company flexibility while still keeping things compliant and protecting the employee’s rights.

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