I liken fixed-term contracts to potatoes because, on the outside they are like the skin of a potato, secure, dependable and can be a fantastic quick fix. This is particularly the case for helping organisations in the short-term to manage staffing gaps. However, if not managed carefully, they can also explode and create havoc in their aftermath.
So we wanted to share with you some key insights about fixed-term contracts to help you to stay on track and to avoid some of those pitfalls associated with employing someone on a fixed-term contract.
What is a fixed-term contract?
So let's start by being clear about what constitutes a fixed-term contract.
According to the Chartered Institute of Personnel and Development, fixed-term employees are employed under contracts that will:
- last for a set length of time (for example, one year)
- end when a specific task is completed (for example, when a project finishes)
- end when a specific event takes place (for example, funding runs out)
Do people on fixed-term contracts have the same employment rights as permanent employees?
Fixed-term contract employees have the right not to be treated less favourably than their permanent counterparts, eg, this applies in relation to receiving training and being given the opportunity to secure a permanent position and to be treated fairly if they want to apply for these roles.
Employment Rights for Employees on Fixed-Term Contracts
The expiry of a fixed-term contract is a dismissal and fixed-term employees will have unfair dismissal rights on being employed for 2 years.
Fixed-term employees who have been continuously employed for 4 years or more on a series of contracts will be automatically treated as permanent employees unless it can be otherwise justified.
We hope that you have found our insight useful and if you're not already one of our lovely HR Pulse clients or would like to talk contracts with us, please feel free to contact us by clicking on the Get in Touch link above.
We'll be very happy to help you!
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