Fixed Term Contracts – Do you have a fixed term contract with your employer?
Although you are working for a defined period, you have rights when it comes to fair wages, severance and pay-in-lieu of notice.
What’s a fixed term contract?
Fixed term contracts are employment agreements that are effective for a set period. Let’s say your contract covers a year. After the year, neither the employer nor you as the employee have obligations to each other.
However, if the contract extends over the one year, or the employer is interested in keeping you past the active contract dates, the nature of the agreement changes.
Why do employers choose fixed term contracts?
There are many reasons why an employer may choose to hire their staff on fixed term contracts.
These agreements are the right choice if an employee is filling a position for a temporary leave (such as maternity leave, for example). These are also common for employees hired for a specific project.
However, some employers abuse fixed term contracts in an attempt to dodge the legal obligations they would hold towards traditional, indefinite-term employees. They will have their staff renew their contracts annually, therefore ridding themselves of the financial duties they would keep to the employee in the event of a termination.
When employers choose to treat their staff this way, it’s the employee who loses in the end.
We’ve seen dedicated, hard-working individuals, lose their rights to fair severance and pay-in-lieu of notice because of the restrictive clauses found within their fixed term contracts.
Don’t let this scare you. These contracts can be flawed and poorly drafted. We have a talent for identifying clauses that are not enforceable. Our Calgary employment lawyers have experience in fighting this.
When it comes to contracts and assessing employment agreements, we only help the employee, you.
I work under a fixed term contract. Does this mean I don’t have rights?
Don’t worry. Even if you’re on a contract, you have rights.
If your employer has terminated your employment before the end date of your fixed term contract, they haven’t held up their end of the deal. In these scenarios, you may be entitled to lost wages or even severance, depending on the length of your employment.
Now if your employer opts to keep you on board past the end date on your contract, you now hold the same entitlements as a traditional employee. These include statutory minimums regarding severance and pay-in-lieu of notice.
Fixed term contracts in Calgary, read the fine print!
Our team of employment lawyers is here to clarify all the legal jargon in your fixed term contract. We will carefully review the terms and conditions of your agreement, and help you fight for what’s yours.
Depending on how things are worded on your contract, some of the restrictive clauses may not be enforceable! If you have any questions regarding your fixed term contract, allow one of our employment professionals to clear it up for you.
Contractors and Fixed Term Employees – Don’t settle for less
Seek legal advice
Contact Osuji & Smith Employment Lawyers for all your employment law-related inquiries at 403-283-8018 or fill out the online contact form for more details.
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