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Justifiable Reasons for Fixed Term Contracts

2023年4月30日

Fixed term contracts are an essential aspect of modern employment. They provide a mutually beneficial agreement between an employer and an employee for a predetermined period. While some may argue that fixed term contracts are detrimental, they have justifiable reasons.

1. Project-based work: In many organizations, there are projects that require additional staff to be hired. Fixed term contracts allow employers to engage qualified professionals for a particular period to work on a project. This reduces the risk of overstaffing, which could lead to financial losses.

2. Seasonal work: Companies that operate in seasonal industries require additional workers during peak periods. Fixed term contracts facilitate the hiring of qualified professionals to meet the demand during peak periods. This arrangement ensures that the company remains productive without incurring unnecessary expenses.

3. Skills shortage: In some industries, there may be a shortage of skilled professionals. Fixed term contracts enable companies to attract and retain such professionals for a particular period. Employers can also train such professionals during this period and, if necessary, convert their contract to a permanent employment contract.

4. Trial period: Fixed term contracts can also serve as a trial period for both the employer and the employee. This arrangement allows the employer to assess the employee`s suitability for the role, while the employee can test the waters and decide whether the job is suitable. If both parties are satisfied, the contract can be renewed or converted to permanent employment.

5. Flexibility: Fixed term contracts provide both the employer and the employee with the flexibility to adjust the terms of the contract to suit respective needs. For the employee, the contract term can be adjusted to fit in with other commitments. For the employer, if there is a change in the business environment, the contract can be adjusted to meet the new demands.

In conclusion, fixed term contracts provide employers with a flexible approach to hiring, especially when dealing with short-term projects and seasonal work. They also provide an opportunity for employees to showcase their skills and secure a permanent position or gain valuable experience. Therefore, it is crucial to consider the justifiable reasons for fixed term contracts before dismissing them as a disadvantage to the workforce.

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