Casual employment contracts: pros and cons

Employee contract

There are three main types of contracts that we can get to sign when choosing a job.

These are Permanent Employment Contracts, Fixed-Term Contracts, and Casual Contracts, which are also known as Casual Employment Contracts, Casual Job Agreements, or Contract-To-Hire. Today we are going to talk about these casual job contracts and see what they offer to a company and a job seeker. An in-depth study about the pros and cons of contract-to-hire can also be found in this article by

What is Contract-To-Hire?

Contract-To-Hire is temporary labor contracts that do not have a specific end date because the project for which they have been signed has not yet been defined. In any case, it is never an indefinite contract, but the worker and the company know in advance that it will end at some point.

This type of work has become an increasingly common practice among companies, as they seek personnel to fill vacancies for a certain time, some examples would be due to illness or maternity. However, it is not always used correctly, due to the clear definition that the law gives to this contract: it must be signed to reinforce the staff in new company projects or to hire experts that will only be necessary while a specific activity lasts as it will not go on indefinitely. These jobs are often the option of many people who are in the process of searching for a stable job. Other people see contractual work only as additional income. These jobs are ideal for people who need more free time for other needs such as studying, caring for children or caring for a family member. In this type of contract, free time is prioritized but income is reduced.

These jobs can last a few days, weeks, or months. Some of these are temporary tasks where employers test their employees if they meet expectations they can become permanent recruitment.

 Pros and Cons for a Company


Workforce Flexibility

The contractual position for work and service allows the company to have flexibility in the workforce, which ensures that it has enough staff during the times when there are unusual company tasks. Once these are exhausted, the contract can be terminated without further ado.

The temporary contract for work and service releases the company from the obligations it could have with the worker in the event of having to fire him at the end of his work with an indefinite contract.


Limited Job Functions

Contracts for work and service cannot be used to hire personnel who carry out the same functions as permanent employees of the company. This type of contract must be oriented to a work or service with its own autonomy in the company.

Contracts for works and services can be regulated by the contract or collective agreement and, therefore, determine what type of work they can be done and for which this contracting formula is not acceptable.

Contracts for work and service do not motivate employees as much as an indefinite contract. Generally, if the worker feels part of the company and safe in it, he will be more productive.

It must be remembered that if the intention is to hire a worker who will carry out the main functions of the company, identical to those of the permanent ones, what is required is not the temporary contract for work and service, but a discontinuous fixed contract. This type of contract is indefinite, but it establishes that the worker will only carry out his specific tasks in the company during certain periods.

Pros and Cons for a Job Seeker



If you are still unsure of your career interests and goals, a contractual job can help you make a decision. This is because temporary assignments give you flexibility and exposure to different positions in order to develop new skills. By increasing your experience and skills you have more possibilities to obtain the job you are really looking for, you can also generate a large network of contacts that could help you in some projects in the future or facilitate your job search.


Not having the same level of commitment as in a full-time job, there is the possibility of choosing a different assignment once you have completed the first one. It is easier to change your position and choose the amount you want to work, of course, it all depends on the type of company you are providing your services to.


With each contractual job, you will be able to generate work experience that you can use in your C.V. Which will help you when competing for a job because you will have a wide range of knowledge and skills. Recruiters usually choose people who are capable of different tasks, as this benefits companies.


Lack of security

The most obvious disadvantage is that it lacks long-term job security. The number of jobs available and wages may vary. This makes it difficult to plan expenses or stick to a budget. If what you are looking for is to stay financially stable, this is not a good option, because one day it can go excellent and then not. It is better to use this form of employment to gain experience and guidance and subsequently to obtain permanent employment.

Limited benefits

In this type of employment you may work without a contract, this means that you will not get the same benefits as permanent employees. Most contractual workers lack health insurance, extensive nuclear family health coverage, paid vacations, retirement plans, utilities, unemployment insurance, and protection against risks at work, among others.

Another limitation of such contracts is that you cannot opt for overtime to earn additional money.

Working under pressure

There are usually more jobs of this type at the end of the year, so employees must work under pressure and stress, as reports on different activities carried out by companies must be submitted. So you must learn to control your character and be tolerant.