Employees with a temporary contract: pros and cons

A temporary contract can come in handy when you are looking for an employee for a limited period. For example, you need to cover peak periods, or if you want to see how a new employee performs before offering them a permanent contract. What are the characteristics, pros and cons of a temporary employment contract?

A temporary contract says something about the period of employment; that it will come to an end at some point. The type of contract, whether it is a zero-hour or on-call contract, is a separate issue.

Pros of a temporary contract

• Since you are hiring the employee yourself, you can set the hourly rate instead of the temporary employment agency.
• You can see a temporary contract as a kind of extended try-out period, where you can see if you and the new employee are a good fit.
• You can hire an employee with a temporary contract during busy periods, such as seasonal work or for the duration of a specific project. 

Disadvantages of a temporary contract

• After 3 temporary contracts or a period of 3 years, you can only offer the employee a permanent contract.
• If you do not renew a temporary contract, you will have to pay the employee a transition allowance.

Video: How to choose an employment contract? | Beginning bosses

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Rules for temporary contracts

• Do you hire an employee for a period of 6 months or longer, and you do not wish to extend the contract? Then you must tell the employee in writing at least one month before the end date of the contract. If you do not do that, then the employee is entitled to (part of) the monthly salary.
• The length of the trial period depends on the term of the temporary employment contract.
• You must offer transparent and predictable terms of employment. If the terms of employment are not transparent and predictable, then your employee may request more predictable terms. 
• Your employee may also request more predictable working hours.