Contract employment

Contract employment involves hiring a person for a specific job under particular terms for a fixed period of time.

A contract employee (or self-employer worker) is not considered a permanent employee and is not eligible for the benefits and accommodations available to permanent employees through a company’s standard policies and procedures.

The employment contract for a contract employee summarizes the services to be provided, any reporting requirements, confidentiality clauses, payment terms, how intellectual property will be treated, employment terms and termination clauses (usually that either party can end the contract within an agreed-upon notice period). It is typically accompanied by a statement of work that clearly describes what is to be done, how, when and to what quality standards.

Contract renewals and extensions are common.

More about contract employment

Whether for contract employees or permanent staff, an employment contract is a legal document. Employers should therefore ensure they use contracts that have been prepared or reviewed by a lawyer.