Glossary/Indefinite contract
Labour law
Indefinite contract
Spain treats indefinite contracts as the default. Indonesia distinguishes PKWTT (indefinite) from PKWT (fixed-term), and a PKWT that is used wrongly becomes indefinite. Brazil's CLT hire is the ordinary employee. A rolling chain of short contracts is how inspector risk starts.
Fixed-term is for genuine project or seasonal work where the statute allows it. A country manager doing ongoing work is an indefinite (or PKWTT) hire.
Countries
Where this shows up
FAQ
Questions we get
- Can we keep everyone on one-year renewals?
- Not if the work is ongoing. Several countries convert repeated fixed-term hires into indefinite employment, or fine the misuse. Use the contract type the job actually is.
Related
Other terms
Contractor management
Classifying, contracting, and paying people who are genuinely independent — and converting them when the inspector would call the arrangement employment.
Probation
A limited opening period of the employment contract, with its own pay floor and notice rules, after which ordinary termination rules apply.
Severance
The statutory or contractual payment due when employment ends without a fault dismissal — often a formula of months per year of service, not a negotiation opener.
Reviewed 11 September 2026. Statutory figures follow the country hiring guides. This is a briefing for multinational employers, not legal advice. For Spain, start with the hiring guide.
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