The Practical Guide to Human Resources Management explains that generally, you'll enter into a fixed-term or limited duration employment contract for the person to complete limited or specific task. The contract could also be linked to the availability of a job for a limited or specific period only. These contracts are a lawful form of employment.
Fixed-term contracts normally have a specific termination date on which the contract and the employment relationship end.
BUT, this isn't always the case. Employers often use fixed-term contracts improperly.
Don't make the same mistake!
Here are the five don'ts for fixed-term contracts
#1: Don't enter into a fixed-term employment contract when the contract isn't for the completion of a specific task or linked to the availability of a job for a limited time period.
#2: Don't use fixed-term contracts as a type of probation to assess if the employee's suitable for the job before you hire him permanently.
#3: Don't use a fixed-term contract for continued employment.
#4: Don't use a fixed-term contract to avoid your labour law obligations to act fairly before you dismiss an employee.
#5: Don't use a fixed-term contract to avoid employing employees permanently.
These are improper uses of a fixed-term contract. If you use a fixed-term contract for any of these reasons, you'll expose yourself to the risk of an unfair dismissal claim.
So ensure you have a good reason to enter into a fixed-term contract in the first place.