Extending a Fixed Term Employment Agreement, a Guide for Employers and Employees
Fixed-term employment agreements are common in many industries, especially in situations where employers need to hire employees for a specific project or a short-term period. However, what happens when that term expires, and the project is not completed, or the employer needs the employee`s skills for an extended period? In such cases, extending a fixed-term employment agreement becomes necessary.
Extending a fixed-term employment agreement can be a straightforward process, or it can be complicated, depending on the circumstances. In this article, we`ll take a closer look at what employers and employees need to know about extending a fixed-term employment agreement.
What is a Fixed-Term Employment Agreement?
A fixed-term employment agreement is an employment contract between an employer and an employee that has a specified end date or a specified event that ends the employment. The agreement typically outlines the terms and conditions of the employment, including salary, benefits, and job responsibilities.
Extending a Fixed-Term Employment Agreement
When extending a fixed-term employment agreement, both parties need to agree on the terms and conditions for the extended period. Here are some things to consider:
1. Negotiate new terms: When extending a fixed-term employment agreement, both parties should negotiate new terms that reflect the extended period. This includes salary, benefits, job responsibilities, and the length of the extension. The new agreement should be in writing and signed by both parties.
2. Reaffirm existing terms: In some cases, the employer may want to reaffirm the existing terms of the original agreement, except for the end date. In this case, the employer and employee can sign an addendum to the original agreement that extends the employment period.
3. Review applicable laws: Employers and employees should review any applicable laws in their state or country that govern fixed-term employment agreements. Some jurisdictions require employers to provide written notice to employees before the end of the current term, while others may require a specific reason for extending the contract.
4. Consider the employee`s desires: Employers should consider the employee`s desires when extending a fixed-term employment agreement. If the employee is happy and willing to extend the agreement, the process can be straightforward. However, if the employee is hesitant or does not want to extend the agreement, this may require more negotiation and could lead to the employee leaving the company at the end of the term.
5. Consult with legal counsel: Employers and employees should consult with legal counsel before extending a fixed-term employment agreement to ensure that they are complying with applicable laws and regulations.
Extending a fixed-term employment agreement can be a complex process, but it is often necessary in situations where the employer requires the employee`s skills for an extended period. Employers and employees should negotiate new terms, reaffirm existing terms, review applicable laws, consider the employee`s desires, and consult with legal counsel. By following these steps, both parties can ensure a smooth and successful extension of the fixed-term employment agreement.