Temporary employment contract template

Temporary employment contracts are essential for businesses that need to manage short-term work arrangements. This article will help you understand what temporary employment contracts are, their purpose, who manages them, and more. We’ll also provide insights into how Juro can streamline the management of these contracts.

What is a temporary employment contract?

A temporary employment contract is a legal agreement between an employer and an employee for a specific period. Unlike permanent contracts, temporary contracts have a defined end date and are used for short-term assignments. These contracts are common in certain industries where work is seasonal or project based, and for covering parental leave or sick leave.

What is the purpose of a temporary employment contract?

A temporary employment contract serves several key purposes:

• Flexibility – it allows employers to adapt their workforce to fluctuating business needs or seasonal demands.
• Project-based work – it's useful for hiring specialists for specific, time-limited projects.
• Trial periods – employers can assess an employee's suitability before offering permanent employment.
• Cost management – it can help companies manage labour costs by avoiding long-term commitments.
• Coverage – it enables businesses to cover staff absences due to maternity leave, sabbaticals or long-term illness.
• Skill gaps – it allows companies to quickly bring in expertise for short-term skill shortages.
• Legal clarity – it clearly defines the terms and duration of employment for both parties.

Who manages temporary employment contracts?

Temporary employment contracts are typically managed collaboratively within an organization.

The HR department often takes the lead, handling contract drafting, ensuring legal compliance and overseeing the hiring process. Hiring managers play a crucial role in defining job requirements, selecting candidates and supervising temporary employees.

The legal department may review contracts and address any legal issues, while the payroll department manages payments and benefits. In some cases, external staffing agencies are involved in handling recruitment, payroll and administrative tasks.

For project-based work, project managers may oversee the temporary employee's duties and contract duration. Senior management is usually responsible for approving temporary employment policies and practices.

The specific management structure can vary depending on the organization's size and nature, but this collaborative approach ensures that temporary employment contracts are handled efficiently and in compliance with relevant regulations.

Temporary employment contract template use cases

Temporary employment contracts are valuable in various scenarios. They're particularly useful for businesses dealing with seasonal fluctuations, such as retail during holiday periods or agriculture during harvest seasons. These contracts allow companies to scale their workforce up or down as needed.

Project-based industries like construction, IT, or event management often use temporary contracts to bring in specialized skills for specific projects. This approach allows them to access expertise without long-term commitments.

Temporary contracts are also beneficial for covering staff absences. When employees take extended leave for reasons such as maternity, illness, or sabbaticals, temporary workers can fill these gaps, ensuring business continuity.

Start-ups and growing businesses may use temporary contracts to manage uncertainty. As they test new markets or expand operations, temporary staff provide flexibility without the risk of over-committing to permanent hires.

In academic and research settings, temporary contracts are common for roles tied to specific grants or time-limited studies. This aligns employment terms with funding cycles.

Lastly, temporary contracts can serve as extended trial periods, allowing both employers and employees to assess fit before committing to permanent positions. This can be particularly useful in roles where cultural fit or specific skills are crucial.

What should a temporary employment contract template include?

A comprehensive temporary employment contract template should include the following elements:

• ‍Job title and description. Specific title, detailed responsibilities, required skills and qualifications.‍
• Employment duration. Precise start date, expected end date or duration and any conditions affecting these dates.‍
• Working hours and schedule. Weekly hours, specific working times and overtime expectations.‍
• Compensation. Pay rate, payment frequency, method of payment and any variable compensation details.‍
• Benefits. Any offered perks, including health insurance, retirement plans or paid time off.‍
• Probationary period. Length, expectations and review process for the initial employment phase.‍
• Termination conditions. Grounds for termination, process and any notice or severance requirements.‍
• Confidentiality agreement. Definition of confidential information and the employee's obligations.‍
• Intellectual property rights. Ownership of work created during employment and related processes.‍
• Non-compete clause. Scope, geographic limitations and duration of any competition restrictions.‍
• Reporting structure. Direct supervisor, team placement and communication expectations.‍
• Performance expectations. Key performance indicators, evaluation process and consequences.‍
• Leave policy. Entitlements for various types of leave and the request process.‍
• Early termination notice. Required notice periods for both parties and related consequences.‍
• Contract extension/conversion. Possibilities and processes for extending or converting the contract.‍
• Company policies. Reference to key policies and how to access full documentation.‍
• Health and safety. Specific requirements, reporting processes and necessary training.‍
• Data protection. Employee's responsibilities in handling data and compliance requirements.‍
• Dispute resolution. Process for addressing grievances and handling potential legal disputes.‍
• Signatures. Requirements for formalizing the agreement, including names, titles and dates.

How are temporary employment contract templates usually managed?

The manual process for managing temporary employment contract templates typically involves several steps, with responsibilities spread across different departments:

1. Creation and storage: The HR department, often in collaboration with the legal team, creates the initial contract template. This template is usually stored in a physical file cabinet or on a shared network drive.
2. Updating: HR reviews the template periodically to ensure it's up-to-date with current labour laws and company policies. Any changes are manually incorporated into the master template.
3. Customization: When a new temporary position opens, HR or the hiring manager retrieves the template. They manually fill in the specific details like job title, duties, dates and compensation.
4. Review and approval: The customized contract is typically printed and physically passed around for review. The hiring manager, HR representative and sometimes legal counsel review and initial the document.
5. Presentation to candidate: Once approved, the contract is presented to the candidate, often in person or via mail.
6. Negotiation and revision: If the candidate requests changes, HR manually revises the document, initiating another round of reviews and approvals.
7. Signing: Both parties sign physical copies of the final agreement.
8. Filing: Signed contracts are filed in physical employee folders and possibly scanned for digital backup.
9. Tracking: HR maintains a spreadsheet or physical log to track contract start and end dates, often setting manual reminders for renewals or terminations.
10. Amendments: Any changes during the contract period require manual updates to the physical document, with new signatures and filing.

Challenges of managing temporary employment contract templates

The manual process we’ve described is still used in some organizations, but it can be time-consuming and prone to errors. It also makes it challenging to quickly access or update information across multiple contracts.

• Time-consuming: The process involves multiple manual steps, from customizing templates to obtaining wet ink signatures, which can significantly slow down the hiring process.
• Error-prone: Manual data entry and document handling increase the risk of mistakes, typos, or outdated information being included in contracts.
• Inefficient storage and retrieval: Physical filing systems make it difficult to quickly access or update specific contracts when needed.
• Limited visibility: Tracking contract statuses, expiration dates and renewals becomes challenging without a centralized, easily accessible system.
• Inconsistency: Manual customization of templates for each hire can lead to inconsistencies across contracts.
• Difficult to scale: As the number of temporary employees grows, the manual workload increases proportionally, potentially overwhelming HR resources.

Automate temporary employment contracts in Juro

Juro’s AI-native contract management platform addresses these challenges, helping legal and HR teams within scaling businesses to manage temporary employment contracts more efficiently.

Self-serve contracts

Empower teams to handle simple contracts independently, reducing the legal team's workload and improving productivity. With Juro, non-legal teams can generate compliant contracts quickly using pre-approved templates.

Accelerated contract workflow

Streamline contract lifecycles with AI-native drafting and negotiation tools for faster deal closures and efficient operations. Juro's intuitive interface ensures contracts are drafted accurately and sent out for approval without delays.

Centralized contract repository

Store all contracts in one secure location for better risk management and compliance. This centralized system makes it easy to access and manage contracts, avoiding missed renewal dates and regulatory issues.

Enhanced collaboration

Facilitate seamless collaboration across teams in a single workspace, improving communication and efficiency. Juro’s platform allows real-time collaboration, making sure that all stakeholders are aligned and informed.

Integration with existing tools

Easily integrate with current systems, ensuring smooth contract management without disrupting workflows. Juro connects with popular HRIS, CRM, and other business tools, creating a seamless process from contract creation to execution.

AI-driven insights

Gain valuable insights into contract performance, risks, and opportunities for informed decision-making and optimization. Juro’s analytics provide detailed reports on contract status, helping teams to track performance and identify areas for improvement.

Juro's AI-native contract automation platform empowers all teams to create, agree, execute and manage contracts up to 10x faster than traditional tools. 

By integrating Juro into your workflow, you can focus on delivering a great candidate experience and making strategic decisions without being bogged down by administrative tasks. To find out more, hit the button below to book your personalized demo.