Contracts
A contract of employment is a legal requirement for any employee. A contact of employments can be permanent (i.e. open-ended) or fixed-term (temporary).
What is a permanent contract?
A permanent contract means that the staff member is employed where there is no end date to the contract. However, the contract can be terminated by giving notice, as specified within the contract, by either employee or employer. The employer must also give a reason for the termination of a contract.
What is a fixed-term contract?
A contract is ‘fixed-term’, when it ends on a specific date, after a certain event or on completion of a task/project.
Fixed-term employment
The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 ensures that employees on fixed-term contracts are treated no less favourably than comparable employees on permanent contracts. Fixed-term employees must be treated the same as comparable employees on permanent contracts unless there are 'objectively justifiable' circumstances for not doing so (i.e. there is a genuine, necessary and appropriate business reason). This means the same or equivalent (pro-rata) pay and conditions, benefits, pension rights and opportunity to apply for permanent positions within the business or organisation.
Duration of fixed-term contracts
Fixed–term employment lasts for a specified amount of time, for example agricultural workers doing ‘seasonal’ work; covering maternity leave or project work with a fixed date for completion. Fixed-term contracts will normally end automatically when they reach the agreed end date.
Fixed-term contracts may be extended but once an employee has two years' service, they have full employment rights, including in relation to the termination of their employment. This includes redundancy rights even if the job is just coming to the end of its 'term'.
Dismissal
Please visit https://www.gov.uk/fixed-term-contracts/renewing-or-ending-a-fixedterm-contract or contact the HR office if you would like further advice on this.
