A fixed-term employment contract is a job agreement that lasts for a specific period of time. It sets a clear start date and end date, and normally finishes automatically when that date arrives.
These contracts are common across Canada in:
- Seasonal jobs
- Project-based roles
- Temporary replacement positions
- Jobs funded for a limited time
While the basic idea is the same everywhere, the legal consequences of early termination or contract renewal depend on the province you work in. That’s why it’s important to understand both the general principles and the provincial rules.
What Is a Fixed-Term Contract?
A fixed-term contract creates employment for a defined period, rather than indefinitely. The job ends when the contract expires, unless:
- It’s renewed
- A new contract is signed
- The employee keeps working past the end date
General Rights for Fixed-Term Employees in Canada
Across Canada, employees hired on a fixed-term basis still receive the same basic workplace rights, including:
- Minimum wage
- Statutory holiday pay
- Vacation pay
- Maximum hours rules
- Safety and human rights protections
A fixed-term agreement doesn’t take away your legal rights. It only limits the duration of the job — not the protections you’re entitled to under the law.
Ending a Fixed-Term Contract Early: General Principles
If an employer ends a fixed-term contract early, Canadian courts often require the employer to pay the remaining value of the contract, unless the agreement has a valid and enforceable termination clause.
This may include:
- Base wages
- Benefits
- Bonuses and commissions (if they would have been earned)
But the exact outcome depends on provincial employment laws and how the contract is written.
What Happens If You Work Past the End Date?
If you continue working after the contract expires — and nothing new is signed — the employment relationship may be treated as having become indefinite.
This can make a big difference if you are later let go, because indefinite employees are often entitled to severance depending on the province and their individual circumstances.
Successive or “Rolling” Fixed-Term Contracts
Some employers repeatedly renew fixed-term contracts to avoid treating someone as a long-term employee.
When this happens, courts across Canada may look at:
- The total length of the relationship
- Whether the role was actually temporary
- Whether the employee reasonably expected ongoing work
Fixed-Term Contract Rules Vary by Province
While the general principles above apply across Canada, each province has different employment laws that affect:
- Whether termination clauses are enforceable
- How early termination is compensated
- Whether mitigation applies
- How contract renewals are interpreted
- How severance is calculated
To understand your specific rights, choose your province:
- Ontario: Fixed-Term Contracts in Ontario
- British Columbia: Fixed-Term Employment Contracts in BC
- Alberta: Fixed-Term Contracts in Alberta
These pages explain the rules that apply where you live — including severance rights, contract drafting pitfalls, early termination rules, and common court outcomes.
When to Speak With an Employment Lawyer
Fixed-term contracts can be misleading, and many employees don’t realize how much compensation they may be owed — especially after an early termination or a series of renewals.
A lawyer can help you:
- Review a contract before you sign
- Understand whether a termination clause is valid
- Determine if a contract rollover created indefinite employment
- Assess whether you’re owed significant compensation
You don’t have to navigate this alone.
Get Advice About Your Fixed-Term Contract
If you have been hired under a fixed-term contract, or your employment ended unexpectedly, speak with an employment contract lawyer at Samfiru Tumarkin LLP.
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📞 Contact us today at 1-855-821-5900 or online to get clear advice about your situation.