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Employment contracts typically fall into two main categories based on duration: definite and indefinite contracts.
Definite contracts have a predetermined start and end date, sometimes tied to project completion — often used for seasonal work, temporary staffing, or trial fit. Employees receive full benefits and rights while the contract is active, though some countries limit how many times it can be renewed. Employment ends automatically at the end date.
Indefinite contracts are the most common type, used for full-time, permanent hiring, with no predetermined end date. Employers must provide reasonable notice and severance pay upon termination, and employees receive benefits like health insurance, pension plans, and maternity leave.
Contractor agreements outline payment details and processors for outsourced tasks or projects that don't require direct employment. Contractors aren't legally employees, so they manage their own taxes and contributions and don't receive employee benefits, but have more freedom in how they work.
