Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Employment law

Fixed-term employees

by Personnel Today 14 Dec 2004
by Personnel Today 14 Dec 2004

Q Can an employer treat fixed-term employees less favourably than it treats permanent staff?


A Not unless this treatment can be justified objectively. The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 state that fixed-term employees must not be treated less favourably, on the grounds of their fixed-term status, than comparable permanent employees, with regard to the terms of their contract, or by being subjected to any detriment by any act or failure to act of their employer.


In particular, this includes rights in relation to periods of qualifying service and the chance to receive training or secure any permanent position within the company.


If, for example, a permanent employee gets more holiday entitlement after a certain amount of service, a fixed-term employee should also receive this increase after the same qualifying period.


To ensure that fixed-term emp-loyees are not treated less favourably with regard to securing a permanent position, employers must ensure that they are informed of any available vacancies.


Q Can an employee be employed indefinitely on fixed-term contracts?


A Under the 2002 regulations, an employee employed under successive fixed-term contracts with the same employer will automatically acquire permanent status once they have been employed for four years. For these purposes, any continuous employment before 10 July 2002 is discounted.


Q How is a fixed-term employee defined?


A For the purposes of the regulations, a fixed-term employee is one employed under a contract of employment that will: terminate on the expiry of a specific term; the completion of a particular task; or the occurrence or non-occurrence of a specific event other than the attainment by the employee of any normal and bona fide retirement age for the position.


Q Can an employer require a fixed-term employee to sign a redundancy waiver?


A No. Since 1 October 2002, a fixed-term employee working on a contract lasting or expected to last for two or more years is no longer able to waive their right to a statutory redundancy payment on termination of the contract. Any waiver signed before 1 October 2002 will still apply, although not where the contract has been renewed or extended after this date.


Q Can an employer balance less favourable treatment in relation to particular contract terms with more favourable treatment in relation to others?


A Less favourable treatment in relation to particular contractual terms will be justified if the terms of the contract taken as a whole are at least as favourable as the terms of a comparable permanent employee’s contract of employment. An employer will therefore be able to balance a less favourable term against a more favourable one, provided that it ensures the overall package is not less favourable than that of the permanent employee. For example, a fixed-term employee might be entitled to fewer days’ holiday, but receive the value of this extra holiday entitlement as increased salary instead.


Q If a contract can be terminated by notice, can it be a fixed-term contract?


A Yes. If in the normal course of events it will continue until the date specified, a contract for a fixed period that can be terminated earlier by notice is still a fixed-term contract for the purposes of the fixed-term regulations.


In Allen v National Australia Group Europe Ltd [2004] IRLR 847 EAT, the employee was employed on a fixed-term contract with an expiry date of July 2003 and an additional clause stating that, during the first six months of service, either party could terminate the contract by giving one week’s notice.


When the employer dismissed Allen on the grounds of competence in January 2003, without giving him the chance to access the performance improvement procedure, he claimed that he had been discriminated against contrary to the regulations.


Although the tribunal dismissed his claim on the grounds that he was not a fixed-term employee, the Employment Appeal Tribunal held that the provision for earlier notice did not negate the fact that the contract’s original intention had been that it would be seen through to the end of the fixed term, unless an event occurred that was not in the normal course.


Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

 


 

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
Employers unaware of Employment Equality Regulations
next post
Yule be sorry if employees get too festive

You may also like

Government publishes ‘roadmap’ for Employment Rights Bill

1 Jul 2025

Employers’ duty of care: keeping workers safe in...

27 Jun 2025

When will the Employment Rights Bill become law?

26 Jun 2025

Seven ways to prepare now for the Employment...

20 Jun 2025

The employer strikes back: the rise of ‘quiet...

13 Jun 2025

Lawyers warn over impact of Employment Rights Bill...

13 Jun 2025

Racism claims have tripled and ‘Equality Act is...

12 Jun 2025

Court rejects Liberty’s legal challenge against EHRC consultation

9 Jun 2025

US Supreme Court lowers burden of proof for...

6 Jun 2025

Institute of Directors demand reforms to Employment Rights...

6 Jun 2025

  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+