The main difference between the Fixed-term Employment Contract and the Indefinite Duration Employment Contracts is, in the first situation the employment relationship is intended to last for only a specific and definite length of time or until a specific project is completed, therefore once the term or project is finished the fixed-term employment relationship ends. Now, in a contract of an Indefinite Duration, the employment is one of continuous service and it is intended to last for an indefinite period of time, with no specified or foreseeable end to the relationship.

Thus, it is important to note the Brazilian labor law only recognize the employment contract with an Indefinite duration, where the company is not allowed to hire an employee for a specific period of time and it is mandatory to provide the notice upon termination on the dismissal within 30 days.