Understanding the Difference Between Fixed Term Contracts and Independent Contracts

 The Difference Between Fixed Term Contracts and Independent Contracts

The way in which employers are hiring is changing due to an increased interest in on-demand skills. This has resulted in a rise in the flexible workforce, including fixed term contracts and independent contracts.

It is important to understand the difference between the above contracts before agreeing to enter into either of them. Once you know your rights as either a fixed term or independent contractor, you can browse through the available positions on RecruitMyMom with a better understanding of which roles will suit your needs.

What is the difference between a fixed term contract and an independent contract?

A fixed term contract is a contract entered into for a specific period of time. Unless renewed, a fixed term contract will expire automatically at the end of the agreed period. Maternity cover is an example of a fixed term contract where the contractor will be paid monthly for the duration of the agreed period of time.

In comparison, and according to the South African Labour Guide, “An independent contract is a contract for a service, and is usually a contract where the contractor undertakes to perform a specific service or task. Upon completion of the agreed service or task, or upon production of the result agreed upon, the contractor will be paid.”

Can a fixed term contract be terminated?

A fixed duration contract cannot be terminated before the end of the contract unless the correct disciplinary and training processes have been followed as laid out in the LRA.

The protections  on fixed-term contracts do not apply to:

•    Employees who earn R205 433,30 per annum

•    Employers who have fewer than 10 employees; or

•    Employers who have fewer than 50 employees and who have been in business for fewer than two years unless the employer has more than one business or the business was formed from other existing businesses.

Pros of working as a fixed term contractor explained:

  • Flexibility: You can take a fixed term contract for the length of time that suits you.
  • Experience: Moving from one fixed term contract to the next can widen your scope of invaluable experience in multiple different companies and fields.
  • Interesting: You get to experience a diverse range of office set-ups, which keeps it interesting
  • Network: Through your contracts you get to create an expansive network of clients and colleagues.

Pros of working as an independent contractor explained:

  • Flexibility: You get to choose when and where you work and at what rate. 
  • Experience: You gain valuable experiences across a variety of clients. 
  • Financial reward: You can charge more per hour than permanent employment. 
  • Ease: If working as a RecruitMyMom independent contractor, you are only working with trusted employers, and you don’t need to collect the money, RecruitMyMom does that for you. 

How to apply for fixed term contracts or become an independent contractor for RecruitMyMom

The first step, if you haven’t done so already, would be to register on our site and upload your CV.  Contract roles are uploaded onto our jobs page, making it easy for you to search for them there. If you are interested in being considered for independent contractor roles, it is also important to indicate your willingness by indicating this on your RecruitMyMom profile.  From your account, go to Edit my profile and select Fixed term or independent contract from ”Select the types of jobs you are interested in section”. 

Changes in the employment landscape are unavoidable. Our hope is that we can help our skilled candidates to navigate these changes and find more meaningful, flexible and remote or hybrid job opportunities.

Register for free on RecruitMyMom today. Once registered, complete your online CV to start searching for your dream job. We operate nationally in South Africa, and globally for virtual assistants. Follow RecruitMyMom on Facebook, Instagram or LinkedIn for regular job alerts. 


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