A contractual employment is temporary whereas a permanent employment is not time-bound. Other areas of distinction are termination procedures, notice period for termination, benefits and job security.

With contractual employment, it means that someone is hired for a specific period, often with a defined end date. This period could be a few months or even years. Once a contract ends, there is no guarantee for continued employement unless a new contract is signed. Contractual employees still have rights which include: right to fair remuneration, protection against unfair termination, leave days among others. However, benefits like pensions, gratuity, and job security might differ compared to permanent employment. While contractual employees are still protected under Kenyan employment laws, some of the protection may be different as compared to those which apply to permanent employees.

Contractual employees are individuals who work for a specified timeframe and receive a fixed fee. They are often alternatives to hiring full-time, long-term employees with the same expertise.
A permanent employee is an individual who works for an employer and receives payment directly from them. They are entitled to full range of statutory employment rights. They work until they retire or resign or until the employment is terminated.
Below are some of the differences between contractual and permanent employment.
I. Permanent employees are eligible for benefits such as insurance while contractual are not eligible to receive benefits.
II. Permanent employees usually work in office setting while contractual tend to work from home and provide their own equipment such as computers and printers.
III. Permanent employees work on a set number of hours with a set workday schedule while Contractual tend to have more flexibility and may create their own schedules as long as their productivity meets the company's needs.
IV. Permanent employees tend to receive paid time off while contractual don't receive unless their contracts specify it.