Renewal of Fixed Term Contracts of Employment: What You Need to Know
Fixed term contracts of employment are a common arrangement between employers and employees in many industries. These contracts typically have a specific start and end date, and are used for a variety of reasons including seasonal work, specific projects, or to cover a leave of absence.
As the end date of a fixed term contract approaches, employers and employees need to consider whether the contract will be renewed. Here are some important things to keep in mind when it comes to renewing fixed term contracts of employment:
1. Review the original contract: Before deciding whether to renew a fixed term contract, it’s important to review the terms of the original contract. Check for any clauses relating to the renewal of the contract, such as notice periods or renewal conditions.
2. Consider the employee’s performance: If the employee has been performing well and meeting expectations, it may be a good idea to renew their contract. However, if their performance has been poor, it may be better not to renew the contract.
3. Check for changes in circumstances: Take into account any changes that have occurred since the original contract was signed, such as changes in the business or the job itself. These changes may affect whether or not it makes sense to renew the contract.
4. Give appropriate notice: If you decide not to renew a fixed term contract, you must give the employee appropriate notice. This notice period may be outlined in the original contract or may be determined by local employment laws.
5. Be prepared for negotiations: If the employee wants to negotiate the terms of their contract renewal, be prepared to discuss their concerns and come to a mutually beneficial agreement.
In conclusion, renewing fixed term contracts of employment requires careful consideration and planning. Employers and employees should review the terms of the original contract, consider the employee’s performance and any changes in circumstances, and be prepared to negotiate if necessary. By following these guidelines, both parties can ensure a smooth transition and a successful renewal of the contract.