Lesson 3.1.3

3.1.3 Type of Employment Contracts Quiz: NCFE Business & Enterprise, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

This lesson explains the main types of employment contract and working pattern: permanent, fixed-term, temporary, zero-hours, freelance, full-time and part-time. For each it looks at what makes it different and the advantages and drawbacks for both the employer and the worker.

Key points

  • A permanent contract has no agreed end date, so it continues until the worker resigns, retires or is dismissed, which gives more job security.
  • Permanent staff are a repeating cost, because the business pays wages, pension, holiday and sick pay even in quiet months.
  • A fixed-term contract has an agreed finish date, which suits covering a known gap such as a project or a period of leave.
  • Temporary contracts suit a business that needs cover but cannot say how long, though temporary staff may feel less loyal and leave early.
  • On a zero-hours contract no hours are promised, so the employer pays only for shifts worked but the worker's income is insecure.
  • Freelance workers are self-employed and paid per project, and they arrange their own tax rather than receiving employee benefits.
  • Full-time usually means around 35 hours or more a week, and part-time staff let a shop match its cover to the busiest hours.

Key terms

Permanent contract
An open-ended employment agreement with no set finish date.
Fixed-term contract
An employment agreement that ends on a date agreed in advance.
Temporary contract
Short-term employment used to cover a need whose length is uncertain.
Zero-hours contract
An agreement where no hours are guaranteed and the worker is offered shifts as the business needs them.
Freelance
Working for yourself and being paid for each piece of work rather than as an employee.
Part-time
Working fewer hours each week than the standard full-time week.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

The 20 questions

  1. Which feature is typical of a permanent employment contract?

    • No agreed end date
    • Annual contract renewal
    • Temporary project length
    • Strict six-month term

  2. A café needs extra help but cannot say how long for. Which type of contract fits best?

    • A freelance contract
    • A permanent contract
    • A fixed-term contract
    • A temporary contract

  3. How are most freelance workers typically paid?

    • Annual salary
    • Weekly sick pay
    • Per project
    • Hourly minimum wage

  4. What distinguishes a fixed-term contract from a permanent one?

    • Agreed finish date
    • Mandatory overtime
    • Lower hourly rate
    • Zero holiday entitlement

  5. How many hours per week usually define full-time work?

    • Zero to twenty
    • Under thirty hours
    • Thirty-five or more
    • Ten to fifteen

  6. Why do businesses often employ part-time staff?

    • Ignore employment laws
    • Eliminate training needs
    • Match peak demand
    • Avoid paying tax

  7. Which contract type provides hours only as needed?

    • Apprenticeship contract
    • Permanent contract
    • Full-time contract
    • Zero-hours contract

  8. What is a key drawback of relying on temporary staff?

    • Lower staff loyalty
    • Higher pension costs
    • Mandatory redundancy pay
    • Excessive notice periods

  9. Which ongoing cost is associated with employing permanent staff?

    • Recruitment agency fees
    • Pension contributions
    • External selection costs
    • Initial job adverts

  10. Why might an employer find zero-hours contracts cost-effective?

    • Paid per hour worked
    • Higher base salary
    • Paid holiday rates
    • Fixed annual costs

  11. What is the main benefit of recruiting a rival firm's manager?

    • Fresh ideas and skills
    • Immediate local loyalty
    • Lower wage demands
    • Zero training required

  12. Which detail is always included in a formal job description?

    • Line manager reporting line
    • Hourly pay rate
    • Exact starting date
    • Holiday allowance

  13. What term describes directly approaching an employed skilled worker to fill a senior post?

    • Mass advertising
    • Job sharing
    • Internal promotion
    • Headhunting

  14. What is a major financial drawback of external staff recruitment?

    • Lower administration time
    • Cheaper interview processes
    • Reduced training fees
    • Higher advertising costs

  15. Why would an engineering firm advertise a vacancy in a trade journal?

    • To find school leavers
    • To attract casual workers
    • To reach industry specialists
    • To reduce printing fees

  16. Why might a business ask job candidates to sit a practical test?

    • To test medical fitness
    • To measure required skills
    • To check their address
    • To assess punctuality

  17. Why do firms usually delay rejecting other job applicants until the preferred candidate accepts?

    • Speed up induction
    • Save office space
    • Prevent withdrawal risk
    • Reduce legal fees

  18. What is an intranet used for when posting internal job vacancies?

    • Open company website
    • A private staff network
    • National job board
    • Public social media

  19. What negative impact can appointing an external candidate for promotion have on existing staff?

    • Reduced training needs
    • Lower staff morale
    • Higher wage bills
    • Shorter notice periods

  20. What is the main drawback for a worker on a zero-hour contract?

    • Mandatory overtime hours
    • Fixed pension deductions
    • Restricted annual leave
    • Unpredictable weekly income

All NCFE Business & Enterprise quizzes