A fixed-term employment contract sets specific start and end date for employment.

In British Columbia, fixed-term contracts can create serious risks for employers — and important rights for employees, especially when employment ends early or the contract is poorly drafted.

Many employees assume a fixed-term contract limits what they’re entitled to. In reality, BC law often says otherwise.

What Is a Fixed-Term Employment Contract?

A fixed-term employment contract is an agreement where employment ends on a defined date or after a set period of time.

Common examples include:

  • One-year or multi-year contracts=
  • Temporary replacement roles
  • Project-based employment
  • Contracts tied to funding or seasonal work

Unlike indefinite employment, fixed-term contracts do not continue automatically unless renewed or extended.

💡 For a national overview of these agreements, see our Fixed Term Contract Canada guide.

Fixed-Term vs Indefinite Employment in BC

The key difference is how the employment ends:

  • Indefinite employment continues until either party terminates it
  • Fixed-term employment ends on a specific date — unless it ends early

That distinction matters because early termination of a fixed-term contract in BC can trigger significant compensation obligations.

What Happens When a Fixed-Term Contract Ends on Its End Date?

If a fixed-term contract:

  • Reaches its stated end date, and
  • Is not renewed or extended,

the employment typically ends without severance, provided the contract is properly drafted and followed.

Problems arise when:

  • The employee keeps working past the end date
  • The contract renews automatically or informally
  • The end date becomes unclear
💡 In these situations, courts may treat the relationship as indefinite employment, restoring full severance pay in BC.

Early Termination of a Fixed-Term Contract in BC

This is where fixed-term contracts matter most.

If an employer ends a fixed-term contract early, BC courts often require the employer to pay the employee the full value of the remaining contract term.

That can include:

  • Remaining salary
  • Bonuses or commissions
  • Benefits and other compensation
⚠️ In many cases, employees terminated early from a fixed-term contract are not required to mitigate by finding new work, unless the contract clearly and lawfully requires it.

Are Fixed-Term Contracts Enforceable in BC?

Yes — but only if they are clearly and lawfully drafted

Fixed-term contracts are often challenged because:

If a fixed-term contract is found to be unenforceable, an employee is likely entitled to common law severance, just like an indefinite employee.

Repeated or Rolling Fixed-Term Contracts

Employers sometimes use back-to-back fixed-term contracts to avoid severance obligations.

BC courts look closely at:

  • The total length of service
  • Whether the role was truly temporary
  • Whether the employee reasonably expected continued work
💡 Repeated fixed-term contracts are often treated as indefinite employment, restoring full severance rights.

Can a Fixed-Term Contract Limit Severance in BC?

Only in limited circumstances.

A fixed-term contract may limit severance only if:

  • The termination language is clear and enforceable
  • The contract meets BC employment standards
  • The employer follows the contract exactly

Many contracts attempt to limit compensation but fail due to poor drafting.

This is why legal review matters before signing — and after termination.

What Employees Should Review Before Signing

Before signing a fixed-term contract in BC, review:

  • Early termination language
  • Renewal or rollover clauses
  • Bonus and commission treatment
  • Benefit continuation
  • Any clause limiting notice or pay

Small wording issues can lead to large financial consequences.

What to Do If You’re Terminated From a Fixed-Term Contract in BC

If your fixed-term employment ends early:

  • Do not assume you’re only owed minimal pay
  • Do not accept a severance offer without review
  • Do not rely solely on HR explanations

You may be entitled to the full remaining value of your contract or more.

Get Advice From a Lawyer

Fixed-term employment contracts are one of the most misunderstood areas of BC employment law.

Before signing — or after termination — get clear advice on your rights.

Speaking with an employment contract lawyer in BC at Samfiru Tumarkin LLP can help clarify whether an agreement is enforceable and what your rights may be if it ends early.
  • No upfront fees in many cases
  • Thousands of 5-star Google reviews
  • Recognized as one of Canada’s Best Law Firms by The Globe and Mail

📞 Contact us today at 1-855-821-5900 or online to get clear advice about your situation.

⚠️ Unionized? Only your union can represent you. By law, employment lawyers can’t represent unionized employees.

Unsure About Your Rights?

Before assuming a fixed-term agreement limits your rights or obligations, get advice on how BC law applies.

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