This thesis discusses temporary employment contracts in the third level academic sector supported by a number of papers which referred to academic employees having to undertake temporary academic employment positions while waiting for a permanent position. For academic institutions this is a useful screening mechanism that: maximises flexibility, avoids irreversibility and offsets uncertainty. Three literature reviews are presented. The first on relevant theories of the firm discusses: transaction cost economics, the resource-based view of the firm and real options theory. The second on real options theory, deemed the most appropriate theory for undertaking the study, due to its consideration of flexibility, irreversibility and uncertainty. The third on temporary employment contracts focusing on their: being a source of flexibility, delaying an irreversible decision, and dealing with uncertainty. Research questions derived from the literature reviews are presented which underpin the research. The research undertaken was in two phases: phase one - an employee perspective, which provided confidence to undertake phase two - two other perspectives: an employer perspective and a human resource management perspective. The key empirical findings are: real options theory is an appropriate framework for which to discern the most appropriate employment contract mode; an 'immediate exit' option protects institutions from an irreversible decision; flexibility, irreversibility and uncertainty are key determinants in deciding upon the most appropriate employment mode; temporary employment contracts are both flexible and reversible and shift uncertainty from the institution to the employee; consideration of irreversibility and uncertainty can lead to the hire of temporary employees; temporary employment contracts offer an opportunity to assess the competence and fit of the employee; human resource management approaches do not currently appear to reflect the need to manage uncertainty and deliver flexibility. Overall conclusions are discussed and the research questions addressed with research limitations and suggestions for further research included.