# Fixed-term employment contract

A fixed-term contract is a contractual relationship between an employee and an employer that lasts for a specified period that is determined in advance. These contracts are usually regulated by countries' labor laws, to ensure that employers still fulfill basic labour rights regardless of a contract's form, particularly unjust dismissal. Generally, fixed-term contracts will automatically be deemed to have created a permanent contract, subject to the employer's right to terminate employment on reasonable notice for a good reason. In the European Union the incidence of fixed-term contracts ranges from 6% in the UK to 23% in Spain, with Germany, Italy and France between 13% and 16%.

## By country

Due to the potential job insecurity that multiple fixed-term contracts may cause, employment laws in many countries limit the circumstances and the way these contracts may be used. In countries where labour law is more restrictive (compensation/indemnity for dismissal), the differentiation between fixed-term and permanent contracts tends to be clearly set out in law. Where employment legislation is less protective for the employee there tends to be a lesser degree of differentiation between fixed and permanent contracts.

### Belgium

There are two possibilities to contract successive fixed-term contracts:
* Successive employment contracts with a maximum term of two years: A maximum of four successive fixed-term employment contracts, where the minimum duration of each contract is three months and the total duration of all the successive contracts is not longer than two years.
* Successive employment contracts with a maximum term of three years: With the prior authorisation of the Belgian Federal Public Service Employment, Labour and Social Dialogue, successive fixed-term contracts can be concluded with a minimum duration of six months if the total duration of all the successive contracts do not exceed three years.

### France

The maximum term is twenty four months and may be extended once only.

### Germany

Fixed-term contracts may not be extended more than three times with a maximum total period of two years.

### India

India allows fixed term employment since 2015. Fixed-term employees are entitled to wage and benefits on par with permanent employees.

### Luxembourg

In Luxembourg, the standard maximum length of a contrat de travail à durée déterminée (CDD) is twenty-four months, with up to two renewals allowed. Researchers and students can employed for a maximum of sixty months on a CDD, with no restriction as to the number of renewals allowed. A waiting period of a minimum of one-third of the length of the contract is required for a CDD to be considered a new contract (and not a renewal) and to restart the maximum allowed duration of employment.

### Saudi Arabia

Although both indefinite and fixed-term contracts exist in the country, foreign workers in Saudi Arabia must have a fixed-term contract; if the contract does not specify an end date, then the term automatically ends when the employee's work permit expires.

### United Kingdom

Any employee on a fixed-term contract for four or more years will automatically become a permanent employee, unless the employer can show there is a good business reason not to do so.