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Appoint Very Senior Executives on Fixed Term Contract

A fixed term contract ends on the date specified in the agreement. Other terms and conditions are agreed between you as the employee and the employer or employing organization.

The contract can also end on the non-occurrence of a specified event such as not achieving the stated financial target.

This is an recruitment strategy.

It is intended to give effective control over your relationship with your employer.

It may contain a term that the employer can terminate the contract if you fail to perform, or misbehave while at work.

It may also contain a term stating that the employer can take action for misconducts outside working hours. It is usual to state that the misconduct must have a negative effect on the good image of the employer.

Appointment of Chief Executive Officers and Senior executives
Chief executive officers are usually appointed on fixed-term contracts.

Other senior executives may also work under similar arrangement.

Effect of Renewing Fixed Term Contracts
A fixed-term contract may provides that it is renewable, that is, there is an option for renewal.

In such a case, you can apply for extension. There is no guarantee that your employer will extend your employment.

Sometimes organizations require that a new contract is to commence on a date not less than one day from the end date of the previous contract.

This is intended to let the first employment contract to run its full term. The break may range from one day to three days to a week.

These organizations believe that this action breaks the employment contract. Thus, the service will not acquire permanent status.

Some people including legal experts counter-argue that this clause does NOT break the contract at all.

But the argument is not over. This is one important issue that affects you if your appointed on a fixed term.

Advantages and Disadvantages of Fixed-Term Contracts
One of the advantages is that you are free to go at any time or after the contract has run its course.

However, your employer can also terminate your employment at any time by giving the required notice. Your only safeguard is that the employer can only terminate your service for for cause.

This is despite the existence of the clause that you can give notice of termination at any time.

Labor Laws
Some legislation will have a bearing on fixed term appointment.

These laws are intended to offer protection for workers. However, these may also specify that organizations are permitted to do certain things within the confine of the law.

Inquire from the HR Manager if you have any doubt.