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Home > Compliance > PAYE and employment regulations > Becoming an employer > Fixed-term agreements & probation periods
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Fixed-term agreements & probation periods

Fixed-term employees

Employers can offer fixed-term employment if:

  • there are genuine reasons - like seasonal work, project work, or where the employee is filling in for a permanent employee on leave
  • the employer tells the employee the reasons, how or when the employment will end, and the employee agrees to this in their employment agreement.

Like other employment agreements, fixed-term agreements must be in writing.

More information on fixed-term employees

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Probation periods

An employer also has the option to an initial probationary period. If the first part of the employment relationship is a probation period this must be recorded in writing in the employment agreement including its duration.

A probation period allows the new employee to demonstrate their skills . Such arrangements may be permissible where the duration and tasks are limited and designed to give the employer a fair opportunity to assess the skills.

Employers may not use such an arrangement to get work done without having to pay for it. A probation period does not limit the legal rights and obligations of the employer or the employee, and both parties must deal with each other in good faith.


Last updated 30 April 2012