Definition & Overview
Learn the core concepts
Author Q&A: Expert Perspectives
See real-world questions answered by Ameena Abdurahiman
Fixed-Term Employment (FTE)
Key Takeaways
- Eliminates the need for third-party contractors.
- Requires "Equal Pay for Equal Work" compared to permanent staff.
- Entitled to Gratuity after just 1 year of service.
- Allows companies to scale labor based on project seasonality.
Why It Matters
It offers more flexibility than permanent roles but more security than traditional contracting. It is becoming the standard for project-led tech companies.
Interactive Insight
Success Timeline
Hire
Define project term (e.g., 12 months).
Equalize
Assign same salary/benefits as permanent.
Gratuity
Eligible for end-of-service benefit after 1 year.
Ameena Abdurahiman
Subject Matter Expert (HR & Compliance)
Is FTE better than contracting?
For the employer, yes, because it builds direct engagement. For the employee, yes, because they get full statutory benefits.
Can an FTE contract be renewed?
Yes, but multiple renewals without a break may lead to claims for permanent status in some jurisdictions.
What happens at the end of the term?
The contract expires automatically. No notice period or severance is usually required if the term is completed.
Are FTEs eligible for bonuses?
Yes, they are entitled to all statutory bonuses and benefits on a pro-rata basis.
How does Kiework track FTE expiries?
Our <a href='/exit-management-process/auto-alerts' class='text-[#2BAEE4] hover:underline'>Auto-Alerts</a> system notifies HR 30 days before a term ends for renewal or closure.
Suggested Questions
Have more questions for Ameena?
Schedule an Expert CallRelated HR Terms
Gig Worker Social Security
A legal framework under the Code on Social Security 2026 (India) that extends benefits like insurance and provident fund to gig, platform, and unorganized workers for the first time.
Indian Labor Codes
The Indian Labor Codes are a massive reform project that consolidates 29 central labor laws into four simplified codes: Wages, Industrial Relations, Social Security, and Occupational Safety.
POSH (Prevention of Sexual Harassment)
POSH refers to the law (in India) mandated to prevent and protect women against sexual harassment at the workplace and to ensure redressal of complaints. It is a critical component of HR compliance in India.
Compliance Committee
A formal internal body responsible for ensuring the organization adheres to statutory labor laws, internal policies, and ethical standards. This includes committees like the Internal Complaints Committee (ICC) for POSH and disciplinary panels.
Right to Disconnect
A policy or legal framework that protects employees' right to not engage in work-related communication (emails, calls, messages) during non-working hours and holidays.
30-60-90 Day Plan
A strategic document used by new employees or managers to map out their goals and strategies for the first three months on the job. It is often part of a structured onboarding process.