A fixed term contract refers to a contract that will terminate on the expiry of a specified term, on completion of a particular task or on the occurrence, or non-occurrence, of any specific event.
The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations came into effect in 2002, and prevent fixed–term employees from being treated less favourably than permanent employees, unless different treatment can be objectively justified.
The regulations aim to limit a series of fixed term contracts from being used in order to avoid an employee accruing those employment rights that are dependent on length of service. They also aim to improve access to training for fixed term workers.
How many times can we renew a FTC?
The use of successive fixed-term contracts is limited to a maximum of four years (starting from 1st October 2002) unless their use for a longer period can be justified. Any contracts continuing beyond this four-year period will be considered to be permanent contracts.
One of our main projects has been completed early and so I will not now require the two additional staff I have brought in on FTC's. Their contracts state that the FTC will end in three months time. Can I still terminate their contracts before this date?
Provided that the contract states that notice to terminate can be given before the agreed expiry date then you will be able to. If there is no notice provision included then it may be construed as a guarantee of employment for the expressed period and you will then have to pay them until the agreed end date of the contract. If a fixed-term contract is terminated before the date specified in the contract, notice must be given.
I have forgotten that a member of staff is on a fixed term contract and the date has now passed. Is this a problem?
A fixed-term contract will automatically expire at the end of its term providing that the actions of either party do not suggest otherwise. However, if the member of staff has still been turning up for work and you have continued to pay them then they could argue that the contract clearly still exists. Failure to renew a fixed-term contract upon termination may lead to a valid claim for unfair dismissal or redundancy pay.
What procedure should I follow at the end of a fixed-term contract?
The expiry of a fixed-term contract is outside the need for compliance with the 2009 Acas Code of Practice on Disciplinary and Grievance Procedures. However an employer should still act fairly in dismissing the employee on the fixed-term contract.
|
