Fixed-Term Employment Contract Format
Engage an employee for a defined period on the same conditions as permanent staff, with clear start and end dates and renewal terms.
What it is
Fixed-term employment is employment under a written contract for a fixed period. The Industrial Relations Code, 2020 (in force from 21 November 2025) recognises it: a fixed-term employee gets the same hours, wages, allowances and benefits as a permanent employee doing the same work, and becomes eligible for proportionate gratuity after one year of service under the Code on Social Security, 2020. The employment ends automatically on the end date unless renewed, and this is not retrenchment.
When it is used
- Project-based or seasonal work.
- Covering a temporary vacancy or a new activity of uncertain duration.
- Engaging specialists for a defined assignment as employees rather than consultants.
What the template covers
- Employer and employee details
- Role, department, reporting and place of work
- Start date, end date and renewal
- Gross pay, basic as a share of pay, PF and ESI
- Leave entitlement
- Notice period, confidentiality and termination
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Agreement
Agreement Date; Place
Employer
Company Name; Address; GSTIN / CIN; Signing Authority Name; Designation
Employee
Employee Name; Address; PAN; Aadhaar Last 4 Digits
Role
Designation / Role; Department; Reporting To; Place of Work
Term
Start Date; End Date; Renewal
Compensation
Gross Monthly CTC (₹); Basic as % of Gross; PF Applicable?; ESI Applicable?
Leave
Leave Entitlement
Termination
Notice Period (days)
Stamp duty, registration and filing
Because benefits must match those of comparable permanent staff, the contract should not be used to reduce pay or benefits. Non-renewal on expiry is not retrenchment under the Industrial Relations Code, but the end date must be genuine. PF and ESI apply as for other employees, and the Code on Wages rule that allowances above half of pay count as wages applies. The contract is not stamped as an agreement in most States, but check the State stamp law.
Generate the Fixed-Term Employment Contract
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. PF, ESI, TDS on salary)? Contact SKAG and Associates
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Frequently asked questions
Is a fixed-term employee entitled to gratuity?
Yes. Under the Code on Social Security, 2020 a fixed-term employee gets gratuity on a pro-rata basis after one year of service.
Can a fixed-term contract be renewed?
Yes, by a written renewal before the end date. Repeated renewals for permanent work can be questioned, so keep the purpose genuine.
Is a fixed-term employee entitled to notice?
The contract ends on the end date without notice. If the employer ends it early, the notice terms in the contract apply.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.