Organisational structures - AQAPermanent, temporary and freelance contracts
Businesses use organisational structures to illustrate job roles and responsibilities. Organisational structures show who each employee reports to in their job.
When workers are given a job by a business, their work is agreed according to one of three different types of contract. The contract types are permanent, temporary and freelance.
Permanent contracts
A permanent contract is one that has no fixed end date. The employee may stay within the business until either they decide to leave or the job role no longer exists. Permanent contracts are suited to certain types of more stable, long-term job roles, such as nurses, pilots and teachers.
Temporary contracts
A temporary contract is one that has a specific end date, where the worker is only employed for a certain period of time. Temporary contracts are very common within the retail industry and in other industries with seasonal demand. For example, a high street shop would require more staff over the Christmas period, so it would employ staff on temporary contracts.
Freelance contracts
A freelance contract is usually one where a self employedA person who is self employed works for themselves instead of an employer. They work for a trade or business they have set up themselves. individual is engaged to carry out a specific piece of work over a defined period of time. The period of time is sometimes very short. Freelance work is very common in the creative industries, such as when a business needs an advertisement, promotional photographs or a new logo.
