Pure Fte Contract Is

Pure FTE Contract: Everything You Need to Know

In the world of employment, there are several types of contracts between an employer and employee. One of the contracts that have gained popularity over the years is the pure FTE contract. In this article, we will explore everything you need to know about a pure FTE contract.

What is a Pure FTE Contract?

FTE stands for Full-Time Equivalent. Therefore, a pure FTE contract is a contract between an employer and employee where the employee is hired full-time. In this contract, the employee’s responsibilities, salary, and benefits are clearly outlined. The term ‘pure’ indicates that the employee is solely committed to the employer and will not work for any other company or take on any freelance work while under contract with the employer.

In a pure FTE contract, the employee is usually entitled to benefits such as health insurance, paid time off, and retirement plans. The employee is also paid a fixed salary, which is often higher than that of part-time employees or freelancers. In return, the employee agrees to work full-time, which means a minimum of 40 hours per week.

Benefits of a Pure FTE Contract

There are benefits for both the employer and employee in a pure FTE contract.

For the employer, hiring a full-time employee on a pure FTE contract means a steady workforce committed to the company’s long-term goals. It also means the employer can manage their staffing needs more efficiently and have a better understanding of their payroll expenses. In addition, full-time employees are often more committed to the company and its success.

For the employee, a pure FTE contract means job security. It also means access to full benefits and the potential to earn a higher salary than part-time employees. In addition, full-time employees may have access to performance-based incentives, such as bonuses and promotions.

Drawbacks of a Pure FTE Contract

Like any other contract, there are drawbacks to a pure FTE contract. One of the main drawbacks is that the employee may be tied to the employer for an extended period. This could limit the employee`s career growth opportunities if they are not able to find better opportunities under the same employer.

Another drawback is that the employer is committed to paying a full-time employee`s salary, even during slow periods or when work is limited. The employer must also pay the employee`s benefits, which may add to their overall costs.


A pure FTE contract is an attractive contract type for both employers and employees. It offers job security, a steady workforce, and access to full benefits for employees. For employers, it helps manage their staffing needs more effectively and ensures a committed workforce. While there are some drawbacks, the benefits of a pure FTE contract make it a popular contract type in today`s employment landscape.