A fixed term contract has a set end date or ends when a specific event occurs, such as a busy season finishing. It must state the reason and the end date in writing. It is common for first jobs like summer retail or holiday season work and still gives you full employment rights while it runs.
Many first time workers assume a fixed term contract is a lesser kind of job, or a trial that does not really count. That belief causes people to undersell themselves in interviews or skip applying altogether. The reality is a fixed term role is a genuine job with genuine rights, it is just time limited by agreement rather than open ended.
Is a fixed term contract the same as casual work?
No. Casual work has no set hours and no guaranteed ongoing role, you get offered shifts as they come up. A fixed term contract has agreed hours or a role description for a defined period, with a stated end date or triggering event written into your employment agreement.
Does a fixed term job still get annual leave and sick leave?
Yes, entitlements build the same way they would in a permanent role. Annual leave of 4 weeks applies once you reach 12 months of continuous employment, and sick leave of 10 days applies after 6 months of continuous employment, so a short summer contract may end before either kicks in fully.
Source: Annual holidays
Source: Sick leave
Can my employer just let a fixed term contract end without notice?
A fixed term agreement can end on the stated date or when the stated event happens, such as the end of the Christmas rush, without it being treated as a dismissal. But the reason and end point must be genuine and must be written into your agreement from the start, not decided on the fly.
- Your agreement should name a real reason for the fixed term, such as seasonal demand
- It must state an end date or a describable ending event
- KiwiSaver still applies with the employer minimum contribution of 3%
- Minimum wage rules still apply in full
- You can ask for the reason in writing if it is unclear
Source: KiwiSaver employer contributions
Key takeaways
- A fixed term contract needs a stated reason and end date or event, it is not just a casual arrangement
- You get the same minimum wage, KiwiSaver, and leave rules as any other employee while the contract runs
- Annual leave and sick leave depend on how long the contract lasts, short contracts may end before you qualify
- If the wording feels vague, ask your employer to clarify the reason and end point in writing
Frequently asked questions
Can a fixed term contract be renewed?
Yes, some employers renew fixed term contracts for another defined period, especially if the same seasonal need comes around again. There is no automatic right to renewal, it depends on what your agreement says and whether the employer offers a new term.
Does a fixed term contract still have a 90-day trial?
It can. The 90-day trial period is only available to employers with fewer than 20 employees, and applies to new employees regardless of whether the role is fixed term or permanent, as long as it is agreed in writing before you start.
Source: Trial periods
Is a fixed term contract good for a first job?
It can be a solid way in. It gives you real workplace experience, a genuine reference, and full legal protections, even if it is not permanent. Many people use a fixed term summer role as the stepping stone to their next, more permanent job.
What should I check before signing a fixed term agreement?
Check the stated reason, the end date or ending event, your pay rate, and whether a trial period applies. If any of that is missing or vague, ask before you sign.
If a job ad's wording around contract type or hours has you confused, run it through Decode Job Ad to see what it actually means before you apply.