Amanda Harvey spells out the imminent new rights for fixed-term workers from 1 October, all staff employed on fixed-term contracts will have new rights.
It may often be entirely appropriate to engage a member of staff on a fixed-term basis to undertake a particular project, or to provide cover for maternity leave for example.

But these contracts are sometimes used as a means of depriving employees of the rights or benefits that they would receive if they were permanent.

The Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 is designed to deal with this and to give staff on fixed-term contracts the chance to fight back if they feel they are being unfairly treated.

It will give fixed-term employees the following:

  • the right not to be treated less favourably than a comparable permanent employee, or the right to equal treatment
  • the right to receive a written statement of reasons for treatment and the right not to be dismissed for enforcing their rights (such dismissal will be automatically unfair)
  • rights in relation to the advertisement of permanent vacancies
  • the right for their fixed-term contract to be converted to a permanent contract upon the next renewal or extension, if the employee has been employed on successive fixed-term contracts for four years or more (unless the employer can demonstrate an objective justification for continued fixed-term employment).

In addition, the ability of fixed-term employees to enter into redundancy payment waiver agreements will be abolished.

The practical effect of the law is likely to be that the use of fixed-term contracts will diminish. Employers will need to consider whether in any particular case the use of a fixed-term contract is appropriate and, if so, will need to ensure that any employee engaged on this basis is treated no less favourably than a permanent employee.

As a consequence, employees engaged on a fixed-term basis could see an improvement in the terms and conditions upon which they are employed.

While all employees employed on a fixed-term basis will have these new rights from 1 October, local authority employees can rely upon their rights under the EU Directive on Fixed Term Work (No. 99/70) in the meantime.