Can We Extend Fixed-Term Contracts Beyond One Year? Seeking Advice on Options

We have taken a few employees on fixed-term contracts for a period of one year. Their terms of agreement are over. Can we extend their period for one more year? If so, can we extend it for only one more year or for two years more?

Thank you.

You can extend the fixed-term contract for one year or two years based on your requirements. However, it is advisable to incorporate all the terms contained in the first fixed-term contract into the proposed contract extending the period of employment and follow all the procedures that were followed by you at the time of signing the first FTC.

Regards,

Dear Members,

Clarification on Service Continuity for Fixed-Term Contracts

I wish to clarify service continuity in the case of fixed-term contracts. Are renewals from the immediate succeeding date from the contract expiry date termed as a continuation of service? Please advise on how long such renewals can be made and whether there are any precautions a company needs to take before executing the same.

- Can such employees claim permanency in the organization?
- Would there be any positive implications on their emoluments, benefits, etc.? If yes, after what period?

Please suggest.

Regards,
Girish