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Definition

Permanent Employment

Permanent employment is an open-ended contract with no fixed end date, offering ongoing job security until either party terminates the arrangement.

Permanent employment, also called a permanent contract or "perm" role, is the most common form of employment in the UK. Unlike fixed-term contracts, there's no predetermined end date—the employment continues indefinitely until either party ends it through resignation, dismissal, or redundancy.

Permanent employees typically receive the most comprehensive benefits packages, including pension contributions, private healthcare, and other perks. They also have stronger employment protections, including unfair dismissal rights after two years of service.

For employers, permanent staff offer stability and the ability to invest in long-term development. For employees, permanent roles provide security and clearer career progression paths.

Key Points

  • No fixed end date—employment continues indefinitely
  • Full employment rights and benefits
  • Notice period required from both sides to terminate
  • Unfair dismissal protection after 2 years' service
  • Often includes career development and progression opportunities

Frequently Asked Questions

Can a permanent contract be terminated?

Yes. Either party can end it with proper notice. Employers must follow fair procedures and have valid reasons after the employee has 2 years' service.

Do permanent contracts always start with a probation period?

Usually but not always. Probation periods are common (typically 3-6 months) but aren't legally required. Check your contract for specific terms.

Related Terms

Fixed-Term ContractFull-Time EmploymentProbation Period

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