Fixed term contracts - what are an employee’s rights?
Fixed term contracts are deceiving by their very nature. The vast majority of employers believe that an employee employed on a ‘fixed term’ absolves them of any liability at the point which the contract ends. Unfortunately, this is not the case.
This is as a result of the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002.
So when I had a client who was going through a restructure/redundancy programme and whom had assumed that their ‘fixed term employees’ could just be done away with, so to speak it was a rather rude awakening for the client to discover this was not the case.
The client was advised that fixed term employees are protected against any less favourable treatment as the title suggests . Therefore it would be advisable to include them in any internal procedure that was to ensue. If the person has been employed for two years or more they would also be entitled to a redundancy payment.
What employers should also note about fixed termed contracts is that, although there is an end date stipulated within the contract employers must still give notice prior to the end date. Also successive fixed-term contracts will be limited to four years after which they may be become permanent. This is unless the employer can objectively justify continuing with it.
Employees’ rights under the regulations
Let me take a moment to just look at what those rights are. Employees’ rights under the regulations can be summarised as follows, to:
- Not be treated less favourably than comparable permanent employees.
- Request a written statement from their employer setting out the reasons for the less favourable treatment
- Be treated as a permanent employee after than four years
- Entitled to statutory redundancy payment after two years
- Receive information on permanent vacancies within the organisation
- Claim unfair dismissal at the end of the fixed term contract if it is not renewed and to receive a written statement from the employer with reasons for the dismissal
- The same pay and conditions as permanent members of staff
Objective justification can be used, not only to circumvent the employee’s rights under the regulations to continue to employ them on a fixed term basis but also can be used to circumvent any of the employee’s rights as listed above.
It would have to be a compelling business reason which for all intents and purposes could prove difficult to demonstrate depending on the circumstances.
It is so easy to slip up where the law is concerned as it so precise and concise. Do not make the mistake that so many others do and end up paying through the nose for it. Let Quest worry about that for you.
For information regarding this or any of our HR outsourcing services contact us today we are just a click/call away.
