Fixed Term Employment vs Permanent Job. Pros & cons in gratuity, bonus, other statutory benefits, and other things if any.
From India, Bengaluru
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From India, Bengaluru
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Dear Shanti,
There is no difference between permanent employment and fixed-term contract employment except in respect of the following aspects:
(1) TENURE OF EMPLOYMENT:
In permanent employment, the employee can normally remain in service until the attainment of the age of superannuation fixed in the contract of employment or the service regulations applicable. On the contrary, the tenure of employment is prefixed in the fixed-term contract, and the employee cannot remain in service beyond the term fixed unless it happens to be extended mutually.
(2) NOTICE OF TERMINATION:
In the case of termination of employment on the expiry of the fixed tenure, no notice of termination is required from either side in fixed-term contract employment.
(3) STATUTORY GRATUITY:
In permanent employment, statutory gratuity is payable only on the completion of the minimum qualifying service fixed, whereas it is payable proportionately based on the years of continuous service actually rendered under the fixed-term contract, i.e., without the minimum qualifying service.
(4) PROMOTION:
In permanent employment, promotion or hierarchical career advancement would be available, whereas it is not in fixed-term contract employment.
From India, Salem
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6108There is no difference between permanent employment and fixed-term contract employment except in respect of the following aspects:
(1) TENURE OF EMPLOYMENT:
In permanent employment, the employee can normally remain in service until the attainment of the age of superannuation fixed in the contract of employment or the service regulations applicable. On the contrary, the tenure of employment is prefixed in the fixed-term contract, and the employee cannot remain in service beyond the term fixed unless it happens to be extended mutually.
(2) NOTICE OF TERMINATION:
In the case of termination of employment on the expiry of the fixed tenure, no notice of termination is required from either side in fixed-term contract employment.
(3) STATUTORY GRATUITY:
In permanent employment, statutory gratuity is payable only on the completion of the minimum qualifying service fixed, whereas it is payable proportionately based on the years of continuous service actually rendered under the fixed-term contract, i.e., without the minimum qualifying service.
(4) PROMOTION:
In permanent employment, promotion or hierarchical career advancement would be available, whereas it is not in fixed-term contract employment.
From India, Salem
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