right-sourcing short-term staff: two engagement options you need to know
TLDR: Before engaging short term staff, it is important to understand the options available, and the key differences.
What is the right employment type for engaging ‘short-term’ staff?
The answer isn’t as straight forward as it should be 🙄 – and there are some critical differences to wrap your head around.
Types of short-term employment
There are typically two options for short term engagements: fixed-term and casual employment.
Confusingly, there are also two types of fixed-term contracts – maximum-term and ‘true’ fixed-term contracts.
True fixed-term contracts are contracts which guarantee employment for a specified period without any right to terminate before the term expires.
Maximum-term contracts, also known as ‘outer limits’ contracts, provide employment for a specified period, but with unconditional rights for you to terminate the contract on notice, before the term expires.
The difference between these types of fixed-term contracts is important, as it could mean an employee becomes eligible to bring an unfair dismissal claim against you.
So, let’s break all this legal jargon down:
As of December 2023, Employers are also prohibited from using fixed-term contracts for a term of longer than 2 years (including by renewals). The limitations apply to both fixed-term contracts and maximum-term contracts.
If you’re not sure if fixed-term employment is the right fit for a short term engagement – take our quiz here 📝 (while this quiz is not legal advice, it’s a good starting point to assess your position.)
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