Guide to using fixed term contracts
Employers often use fixed term contracts under the misapprehension that they are a less protected form of employment.
The expiry of a fixed term contract which has been in place for over 2 years (less 7 days) without renewal counts as a dismissal for unfair dismissal and redundancy purposes.
To reduce the risk of a potential unfair dismissal claim you should only consider using a fixed term contract in circumstances where;
- the employee is employed to work on a project that will continue for a specified period; or
- an employee’s position is funded by a third party for a specific period and/or is dependent on that funding; or
- a position is to cover for maternity leave or a sabbatical; or
- or the employee will be employed for a discrete season of work.
To terminate a fixed term contract fairly you need to have a potentially fair reason. If you want to rely on Some Other Substantial Reason you will need to show that you have a substantial business reason for terminating i.e. one of the bullet points above. You will also need to follow a fair dismissal procedure on the expiry (non-renewal) of a fixed term contract.
Also remember that fixed term workers are protected from differing treatment when compared with full time workers and that after four years fixed term contracts may convert to permanent.
If you need advice or have any questions in relation to the use of fixed term contracts, please contact David Greenhalgh on 020 3603 2177.
Common Questions Answered
Why do I need a lawyer to review my settlement agreement?
UK law requires independent legal advice to be taken before a settlement agreement can become legally binding. Without it, the agreement is unenforceable. An experienced employment lawyer will ensure you understand every clause and that your interests are fully protected.
How much does it cost to get a settlement agreement reviewed?
Your employer will usually pay for you to get independent legal advice on the terms and effect of your agreement. This is standard practice and is typically written into the agreement itself as a contribution towards your legal costs.
Can my settlement agreement be improved?
Often, yes. David regularly negotiates for increases in value, better exit terms and stronger protections for his settlement agreement clients. Even where an employer presents a figure as “final”, there is frequently room to negotiate.
How long does the process take?
With David, many clients get to sign-off in a matter of days if all they need is advice and sign-off. On urgent agreements David provides a same-day service, so a tight deadline is never a barrier to getting the right advice.
