A fixed-term employment contract is an agreement that sets a specific start and end date for employment.
In Ontario, fixed-term contracts can significantly affect an employee’s rights — especially if the employment ends early. While these contracts are common, they are often misunderstood and frequently drafted incorrectly.
A fixed-term contract is a type of employment agreement in Ontario where the job is intended to last for a defined period of time, such as:
Unlike regular (indefinite) employment, a fixed-term contract is supposed to end automatically on a set date without notice.
Simply calling a contract “fixed-term” does not always make it enforceable under the Employment Standards Act (Ontario Law).
Courts closely examine fixed-term contracts to determine whether they are truly time-limited or whether they function like regular employment.
Key points to understand:
If a fixed-term contract is not properly drafted or applied, it may be treated as indefinite employment, with full termination rights.
While this page focuses on Ontario law, fixed-term agreements are treated differently across provinces. For a broader overview, see our guide to ...
Anxieties over being accused of harassment or unethical behaviour are prompting business leaders to reduce interactions with staff 21 January 2026 Business leaders are increasingly altering their ...