Fixed-Term Employment Agreement template for Canada

For employees hired for a set period or a specific project, such as a maternity leave replacement or a 12-month contract, with an early-termination clause to limit risk.

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At a glance

Length
Ends on a set date or when a defined project is complete
Early termination
Without a valid early-termination clause, you may owe pay for the rest of the term
Renewals
Repeated renewals can turn the job into an indefinite one
Notice at the end of the term
Usually none if the term truly ends as agreed, but check your province's rules
Vacation and holidays
Same minimums as permanent employees, or vacation pay at the end
Language requirement
Describe how each language is used and the level needed. In Quebec, a non-French language requirement must be justified by the duties.
Language
In Quebec, the contract must be in French unless both parties expressly choose another language

Template

Replace the highlighted text in brackets. Delete optional clauses you don't need.

Fixed-Term Employment Agreement

1. Parties

This Fixed-Term Employment Agreement is made on [date] between [Employer legal name] (the "Employer") and [Employee full name] (the "Employee").

2. Position and term

The Employer will employ the Employee as [job title] for a fixed term starting on [start date] and ending on [end date] (the "Term"), [or: ending when the [project] is complete, which is expected to be on or about [date]]. The employment ends automatically at the end of the Term unless both parties agree in writing to extend it.

3. Language requirements

The position requires the Employee to work in [French and English]. The Employee will use [French] to [tasks, e.g. serve clients by phone and email] and [English] to [tasks, e.g. write reports and work with head office], at a [professional / advanced] level for speaking, reading and writing. [If the job is in Quebec: the Employer has assessed that these duties require knowledge of a language other than French.]

4. Reason for the term

This position is temporary because [reason, e.g. it replaces an employee on parental leave / supports a project funded until a set date].

5. Duties, place of work and hours

The Employee's duties are described in Schedule A. The Employee will work at [location] and will normally work [number] hours a week. Overtime will be paid as required by employment standards legislation.

6. Pay and benefits

The Employer will pay the Employee $[amount] a [year / hour], less required deductions, paid [pay frequency]. The Employee [will / will not] be eligible for [benefits].

7. Vacation

The Employee will earn vacation and vacation pay at no less than the rate required by employment standards legislation. Unused vacation pay will be paid out when the Term ends.

8. Ending employment early by the Employer

The Employer may end the Employee's employment before the end of the Term, without cause, by providing notice of termination or pay instead of notice, and severance pay if applicable, as required by [the employment standards legislation of the province where the Employee works], and nothing more. The Employer will never provide less than that legislation requires. If the Employee engages in conduct that disentitles them to notice under that legislation, the Employer may end employment without notice or pay.

9. Ending employment early by the Employee

The Employee may resign before the end of the Term by giving [2] weeks' written notice.

10. Confidentiality and property

The Employee will keep the Employer's confidential information private during and after employment, and return all of the Employer's property when employment ends. Work product created in the course of employment belongs to the Employer.

11. Entire agreement and governing law

This Agreement is the entire agreement between the parties and is governed by the laws of [province].

12. Signatures

Employer: [name, title] — Signature: __________ — Date: __________
Employee: [name] — Signature: __________ — Date: __________

Adapting the template

1

Project-based end date

If the job ends when a project is done, define the project clearly and say what happens if it runs much longer or ends early.

2

Extending the term

Put any extension in writing before the term ends. If an employee keeps working after the end date without a new agreement, they may become an indefinite employee.

3

Students and seasonal work

Seasonal and summer jobs can use this template. Check minimum age and hours rules for young workers in your province.

What employers miss

"Bilingual" isn't a job requirement

Write down which languages the job uses, for which tasks, and at what level for speaking, reading and writing. It helps you hire fairly, test the right skills and explain the requirement if it's ever questioned.

No early-termination clause can be expensive

In Ontario, the Court of Appeal has held that an employer that ended a fixed-term contract early without an enforceable early-termination clause owed the employee pay for the rest of the term. Make sure your early-termination clause complies with employment standards, and have it reviewed by a lawyer.

Back-to-back contracts

Renewing the same fixed-term contract again and again can lead courts to treat the employee as permanent, with the notice rights that come with it.

Same minimum standards apply

Fixed-term employees get the same minimum wage, overtime, vacation pay and public holiday rights as permanent employees.

Justify languages other than French in Quebec

Under Quebec's Charter of the French language, you can only require knowledge of a language other than French if the duties really need it, after assessing the job's actual language needs and the language skills already in your team. Say why in the job posting and keep a record of your assessment.

Official sources

Check the employment standards for the province or territory where the employee works:

Questions

Do I owe notice when a fixed-term contract ends on its end date?

Usually not, if the contract clearly states the end date and it ends as agreed. Some provinces have special rules for longer terms or repeated renewals, so check yours.

Can a fixed-term employee resign early?

Yes, with the notice in the contract. Courts rarely make employees pay for leaving early, but the contract should say how much notice to give.

What happens if the employee keeps working after the end date?

Without a written extension, they may be treated as an indefinite employee, entitled to notice if their employment later ends.

Not legal advice

This template is general information based on Canadian employment law, last checked on October 5, 2026. Laws differ by province and change over time, and courts look closely at termination clauses. Have an employment lawyer review your contract before you use it.

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