Investopedia Fixed Term explanation
A common example of a fixed-term investment is a term deposit, in which the investor deposits his or her funds with a financial institution for a specified period of time and cannot withdraw the funds until the end of the time period, or at least not without facing an early withdrawal penalty. This is the opposite of a demand deposit, in which the investor is free to withdraw his or her funds at any time. As a price for the convenience of withdrawal at any time, demand deposits generally pay lower interest rates than term deposits.
This page sets out advice and information for members working on fixed-term contracts.
A fixed-term contract of employment is defined as a contract of employment which:
- has a definite start and end date, or
- terminates automatically when a particular task is completed, or
- Terminates after a specific event (other than retirement or summary dismissal).
ATL believes that fixed-term or other short-term contracts should only be used for transparent and objective reasons where there is a genuine fixed-term or temporary need. In these circumstances, both parties (employer and employee) should agree that the contract is to be fixed-term before it begins.
Examples of 'genuine fixed-term or temporary need' might include:
- work of a specialist short-term nature
- cover for an absent employee, such as maternity leave
- Work externally funded by a single source for a fixed period of time.
If work continues beyond the fixed-term or temporary need, ATL believes schools and colleges should review their staffing requirements related to that work with a view to minimizing the use of fixed-term or temporary contracts. The employee concerned should request this review.