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An employee can be kept on successive fixed-term contracts for a limit of four years. If your contract is renewed after that you become a permanent employee unless the employer can show a good reason why you should stay on a fixed-term contract.
Temporary workers are employees of yours or of a temporary agency. Contract workers are hired to perform a job or task, but they are not your employees – they are in business for themselves.
Most importantly temporary agency workers have the right to the same basic employment and working conditions, such as pay and holidays, as permanent staff once they have worked for 12 weeks in the same role for the same hirer.