Employees - Fixed-term contracts

From 10th July 2006 any employees on fixed term contracts might become permanent. Not all local businesses are aware of these changes.

Partner, Andrew Bryan says

“The Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (the “Regulations”) provide that an employee who has been employed continuously under a fixed-term contract (or a number of successive fixed-term contracts) for four or more years, starting on 10 July 2002, will become a permanent employee. This has the effect that from 10th July, employees on fixed-term contracts may become permanent members of staff.

Some employers can justify objectively the use of fixed-term contracts at the date the contract was entered into, or last renewal and avoid the permanent status. There is no guidance in the Regulations on what may constitute an ‘objective justification’, but it looks like employers will have to show that there is a very real need to keep employees as fixed term and denying permanent status is appropriate. However, local businesses need not be too concerned as fixed term employees have similar rights to permanent employees under those regulations.

Contact us for Andrew Bryan on 02392 210 170 for advice on how this might affect your business.