Contingency Employment Agreement

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Breaking out the champagne to celebrate getting the job may be premature in the case of a contingency employment agreement. These contracts can easily be terminated if the terms are not lived up to. This type of assignment may also be for a limited time. Contingency agreements are used for a variety of purposes, as well as time frames, and may or may not lead to permanent employment.

Agreement Expectations

There are many expectations with contingency employment. Contracts typically cover duration, job description, pay rate, noncompetition agreement, confidentiality, management rights and termination conditions. The contract can also be renewed, extended or converted into a permanent position. Companies use the management rights section to attempt to retain certain flexibilities and rights, such as changing the job description or duration, according to the website Minoritycareernet.

Time Frame

With some agreements, a set time frame is the contingency. Rather than being contingent on the completion of a specific workload, the contract is based on a certain time frame. The work under these agreements will not be continued after a certain date. A contract can be renewed if the job is not completed or if more work of a similar type comes in.

Worker Types

With the greater use of part-time workers, independent contractors and temps in companies, contingent employment is most fully developed in the high-tech and high-wage sectors of information technology, such as the software industry. Temporary-work employers also hire workers under this type of contract. These workers, whether classified as temporary, contract, independent, seasonal, on-call or leased-contract, normally complete the work within a certain time frame.

Contract Considerations

A consideration with contingency contracts is that the workers are not permanent employees. However, employers have the option to hire them as permanent employees. Temp-to-hire workers start out under contingency contracts with the hope that the work turns into a permanent job.

Work Scope

The work performed doesn't typically extend beyond the work outlined in contingency contracts between employers and workers. The tasks, as detailed in the contract, are what the worker is expected to complete. When all tasks are finished, the contingency contract can be considered complete, which would eliminate the position.

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