Fixed-term vs permanent contracts – which is for you?

In this corner, the reigning champion. Regardless of all the recent noise about zero-hours contracts and self-employment, permanent contracts remain among the most common forms of employment. Permanent contracts remain a guarantee of security, stability and protection for employees. They provide reassurance for bank managers and landlords when applying for a loan or renting a flat, and provide you with paid holidays and better benefits. And yet, the employee's holy grail has its challenger: the fixed-term contract.

Is this match over before it's begun? Not so fast. Fixed-term contracts give you more control over your own time, allowing you to have more experiences or travel regularly; some even pay more than their permanent equivalents. This is anything but anecdotal, particularly among young employees, for whom, according to Maëzelig Bigi, senior lecturer in sociology at the Conservatoire national des arts et métiers, "the attachment to work is just as great (as for previous generations), but they are expressing greater desire for a more diverse life; in any case, this has been a constant in opinion polls for the past fifteen years".

Live your own professional life (or lives)

These are not the only possible advantages of the fixed-term contract. There are fewer and less stringent requirements for giving notice and terminating the work contract, and no awkwardness when it's your time to leave. When you spot an opportunity, you're free to go after it. Now is the time to be bold: since Covid, business creation has boomed. Is that enough to seduce the entrepreneur in you?

A succession of fixed-term contracts also allows professionally polyamorous people to test a thousand and one vocations. Perhaps even simultaneously. That's enough to entice both the Stakhanovites and Generation Z (you, that is), a third of whom want to have three or more jobs. As Steve Jobs put it, "Your time is limited, so don’t waste it living someone else’s life.". Jobs knew better than anyone that the future would be about creativity, about diversity, and above all, about experiences.

Fixed-term contracts: know your rights

While employers often prefer the flexibility afforded by fixed-term contracts, they still come with their fair share of worker's rights. For those concerned with job security, it's important to remember that unless you've expressly agreed to an early termination clause, your employer can't terminate the contract early.When your contract is terminated – or simply not renewed – you have the right to a written explanation, as well as a notice period (depending on how many years you've worked). If you've worked at least two years and you're made redundant, you may still be entitled to redundancy payments, like a permanent employee. Last, but certainly not least, if you work on fixed-term contracts for the same employer for four years, in most cases, your contract will automatically become permanent. You might think of this as an opportunity to 'test the waters' before making a long-term commitment to an employer.

Rethinking the permanent contract

However, the Holy Grail of employment contracts would be wrong to rest on its laurels. From the 'Great Resignation' to our newfound interest in work/life balance, it's in a hurry to up its game. It can start by shedding its bad reputation, which is greatly exaggerated: it's not a lifetime commitment. There's nothing to prevent you from leaving during your trial period – usually six months – or from negotiating an amicable termination. A permanent contract with a single employer can make it easier for you to pursue further education and training – and ultimately a second career. With that in mind, the more itinerant among you may feel a little less restricted.

So, how can we decide between permanent and fixed-term contracts? Each person, each age and each phase of life is different. Those who are trying to 'find themselves' often prefer short-term obligations. Others will want to settle down, be part of a team, embrace their position and enjoy where they are in life. That is, indefinitely.