CALL 0333 344 6845

What Type of Employment Contract is Best for Me?

What Type of Employment Contract is Best for Me?


We live in a crazy world right now, especially in terms of work. Due to various reasons (with both the employer and the individual), people are finding themselves in different types of contracts more than ever. Not only this, but you can expect to see different types of employment contracts when applying for work. But what exactly does this mean?

Well, in this blog, we’re going to go through the different types of employment contracts. We’ll explain what they are, what they mean, and how they can benefit you.


What Is an Employment Contract?

An employment contract is a legal document between an employer, business, or company, and an individual or group. Put simply, it’s the contract that both parties sign, meaning one will perform specific tasks or duties for the other and will be paid in exchange. This document is legally binding and will contain the terms and conditions in which both parties must meet. This includes pay rate, working hours, and more.


What Types of Employment Contracts are There & What Suits Me Best?

In this section, we’re going to go in-depth with the most common forms of employment contract, along with the benefits of each.



Paid a salary or fixed hourly-rate, employees on a permanent employment contract are entitled to all benefits and perks offered by the company. This includes holidays, sick days, and more. These contracts are indefinite, meaning they remain active until terminated by the employer, employee, or both.

It’s important to note that a permanent employment contract is not a full-time contract, as a permanent part-time contract is also available. For more information on the difference between full-time and part-time contracts, click here.

Permanent positions are best suited to individuals looking for long-term financial security. Due to the contract being indefinite, there is no risk of the contract being prematurely terminated – unless the individual fails to perform or breaches the terms and conditions.



A fixed-term contract focuses on employment only being certain for a set period. However, the length of these contracts can vary massively. From as short as a week or month for a small project to 6 months or even a year, it will depend on the project and role on offer. However, fixed-term employment contracts offer the same benefits as a permanent contract. In order to protect the employee, an employer or business cannot offer an individual less-favourable terms based on the position being fixed-term.

Fixed-term contracts can be extended to keep the individual in the role if needed longer. However, if the employee is kept on for over 4 years, the law states that the contract becomes permanent. For the contract to be extended, both the employee and the employer or business must agree to the terms offered. It is the employer’s responsibility to inform an individual in a fixed-term contract if a permanent contract in the same role becomes available.

Fixed-term contracts suit individuals looking for secure work but are not concerned with the length of a position. For example, fixed-term contracts are common around the festive period, providing seasonal jobs for people looking to earn some extra cash.



No, this doesn’t mean you can turn up in sandals at 3 pm in the afternoon and go home when you want. However, a casual employment contract is, for lack of a better term, more casual that both permanent and fixed-term contracts.

A casual employment contract offers no fixed hours, days of work, or guarantee of work. Although this may sound unfavourable for most, casual employment contracts are a great option for those who are financially stable.

Often taken up by semi-retired workers, casual employment contracts often offer a higher rate of pay, due to the irregularity of the work. This type of contract allows either party to cancel the contract with little to no notice period but are not awarded sick or holiday pay.


Are Permanent and Full-Time Contracts the Same?

The short answer is no, they are not.

As we’ve briefly highlighted earlier in this blog, permanent contracts simply mean that your contract is indefinite and on-going. This means it’s possible to be employed in a part-time position permanently. Because of this, it’s important to check which kind of contract is on offer when applying for a position. For more information on the difference between part-time and full-time positions, click here.


Thanks for reading! If you’re ready to start applying for jobs, check out our jobs page. Or, to read more about job interviews and how to secure your next job, read more of our blogs.

Leave a Reply

Your email address will not be published. Required fields are marked *