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one of the main challenges employers face when hiring new staff is figuring out which contract to give them while some employers apply the one-size-fits-all method when it comes to using a contract this is often neither the most legally correct nor the most mutually beneficial for the employer or employee so what kind of contracts are there and which should you choose heres your crash course [Music] nowadays most employers prefer written contracts to set clear expectations and limit liability its crucial you become familiar with the most common contracts permanent employment contracts otherwise known as indefinite contracts employees under these contracts are eligible for benefits such as sick days bonuses and health care growing businesses often use permanent contracts to entice and retain high quality workers fixed term contracts contracts of this kind terminate either by a specific date three months from signing the contract for example or when a specific task has been completed