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Increasing levels of non-permanent employment have raised concern about quality of working life in the public sector. This Finnish study examines whether the public sector can be characterized as a 'model employer' with regard to the working conditions and well-being of fixed-term employees. Compared to the private sector, the difference in the physical load between non-permanent and permanent employees is significantly smaller in the public sector. Comparison of psychosocial strain shows a difference in favour of non-permanent employees, particularly among women working in the public sector. The association between type of employment contract and health is similar in both sectors. The equality between permanent and nonpermanent employees gives reason to benchmark the public sector as a model, even if the present findings may be due partly to sectorspecific occupational structures.