Introduction
The relationships between employers and workers are usually stipulated by various employment agreements and contracts that cover their responsibilities, job conditions, requirements, wages, fringe benefits, and others. In particular, contract employment, which implies a set time duration, including one, three, and five years, can benefit all participants of work relationships despite some drawbacks. This paper aims at discussing the advantages and disadvantages of one-, three-, and five-year contracts in relation to companies and employees.
One-Year Contract
Generally, the first option provides contractors with comparatively high flexibility in work and changing employers and excellent opportunities to acquire or deepen their skills due to the abundance of available work. Nevertheless, such workers always face a absence of job security and problems to comply with the policies of different companies. The primary advantages of a one-year contract for employers are that they can use it as a probationary period to determine future cooperation and that it is beneficial for the company budget (“What is,” n.d.). On the other hand, firms have to invest additional time and money for training and are more likely to lose valuable employees.
Three-Year Contract
The core advantage of a three-year contract over a one-year one is that it allows for developing more sound and promising relationships between organizations and labor. This, in turn, may result in entering into new contracts or event permanent employment agreement beneficial for both parties. In addition, this variant also has relatively high flexibility in choosing employment opportunity for contractors. However, career uncertainty still hangs over such contractors, while the possibility of losing skilled workers pursues companies.
Five-Year Contract
Five-year contracts typically assume robust relationships between companies and qualified contractors and frequently grow into further close cooperation with prolonging contracts or concluding other profitable agreements. Besides, job security and higher gross salary are shared features of this option. It is also worth noting that in case of contract termination before its expiration date, a five-year contract employee should be compensated regardless of any or no reasons (“What goes into,” 2017). Nevertheless, workers still may encounter particular difficulties in canceling the contracts, which can also impact when making contracts with other companies.
References
What goes into an employment contract and why? (2017). FindLaw. Web.
What is a fixed-term contract? (FTC). (n.d.). Instinct. Web.