Becoming an employer for the first time

There may be times when it's best for your business to take on somebody on a fixed-term contract. This is one which either:

• Lasts for a specified time, set in advance
• Ends with the completion of a specified task
• Ends when a specified event does or does not take place

Some examples include:

• Taking someone on for just three months to cover the busy run up to Christmas
• Employing someone specifically to cover for someone who is on maternity leave

Pros and cons

Fixed-term contracts give you the advantage of bringing in specific skills and labour as and when they are needed.

It's important to remember that unless there are special circumstances which can be justified, you must treat fixed-term employees the same as comparable permanent employees.

This means you must give them the same:

• Pay and conditions
• Or equivalent benefits package
• Or equivalent pension scheme
• Opportunity to apply for vacancies for permanent posts in the business

Fixed-term employees also have access to the same employment rights as their permanent equivalents.

Tax arrangements

You will need to make the same tax arrangements for fixed-term employees that you would for permanent employees.

For more information, visit HMRC: Employers.