What is an Interim Contract?

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As the concept of job longevity becomes less common in the workforce, interim contracts are becoming an increasingly popular alternative to permanent employment. As a contractor, it is important to understand the essential tips before signing a contract. In this article, we’ll go through what you should consider before signing an interim contract.

What is an interim contract?

Interim contracts, commonly known as contract roles, are legally enforceable business contracts. These contracts tend to be enforceable for a set period of time. Interim contracts are for individuals who possess niche skills. In brief, an interim contract is an agreement between you and a public entity such as a business which states that you will provide services needed for the phasing of the development of an operation.

Further, an interim contract is a form of temporary employment that does not guarantee a permanent job. However, the experience of managing first-hand a project will give you invaluable experience.

Current demand for interim contracts

It is important to remember that not all companies offer interim contracts. But, interim contracts are prominent in fields of project management, marketing departments, engineering departments, operational management and human resources. Within these departments is a need for an interactional and blended workforce of permanent full-time employees and contractors. By offering interim contracts, businesses seek to fill the gaps in specific expertise and knowledge. Such, a business can bring particular expertise to their projects through interim contracts.

Rights under an interim contract

Before entering into an interim contract, it is crucial to know your rights under this contract. It is important to remember that interim contracts are contractual work agreements. This means that you are able to receive sick leave and annual leave. You are entitled to be paid through your company payroll process. This can be set between you and your employer for a fixed-term basis or daily rates. Additionally, you are not entitled to further work after the agreed termination of contract date has passed. However, you should be aware of situations when dismissal is unfair. The Fair Work Commission website will give you further information regarding unfair dismissals under a contract. Your rights under an interim contract also includes the opportunity to negotiate terms and conditions of your contract. Before entering into a contract agreement, you should seek to receive professional advice on what to expect.

Final thoughts

In conclusion, one of the radical and untraditional mechanisms of employment consists of interim contracts. Whilst entering into an interim contract may be for you, it is easy to fall into the trap of signing papers without reading terms and conditions of the position. As interim contracts are legally enforceable, it is imperative that you understand your contract to avoid potential legal liability.

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