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When it comes to hiring employees, many businesses are turning to temporary work contracts as a way to save money and fill short-term needs. While this type of contract can be beneficial for both employers and employees, there are some risks involved that should be considered before signing on the dotted line.

A temporary employment contract is a legally binding agreement between an employer and employee. This type of contract typically covers a specific period of time and outlines the job duties, compensation, and other details related to the position. It’s important to note that while temporary workers are not considered permanent employees, they still have certain rights such as minimum wage laws and overtime pay.

One of the biggest risks associated with temporary work contracts is that they can be terminated at any time without notice. This means that if an employer decides to end the contract early or no longer needs the employee’s services, they can do so without having to provide any explanation or severance pay. Additionally, since these types of contracts are often short-term in nature, there may not be enough time for an employee to build up benefits such as vacation days or health insurance coverage.

Another risk associated with temporary work contracts is that employers may not always provide clear expectations for the job duties or performance standards. Without this information, it can be difficult for an employee to know what is expected of them or how their performance will be evaluated. This lack of clarity could lead to misunderstandings or conflicts between employers and employees down the line.

Finally, when it comes to taxes, there are some differences between permanent employees and those working under a temporary work contract. For example, employers may not withhold taxes from a temp worker’s paycheck like they would with a regular employee’s wages. This means that temp workers must make sure they set aside enough money throughout the year in order to cover their tax liability when filing their return at the end of the year.

Overall, while pursuing a temporary work contract can offer many benefits for both employers and employees alike, it’s important for all parties involved to understand the potential risks involved before signing on the dotted line.


Job Skills’ employment specialists are there to answer any of your employment questions. Job Skills‘ staff offer solutions to all job seekers, including youth, newcomers, mature workers, persons with disabilities, and entrepreneurs. Job Skills knowledgeable team can help you make educated decisions, set goals, and create a strategy to help you become happier in your career. Job Skills works with local employers creating employment opportunities for Job Skills’ clients. 

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