12
OCT
2014

Use of Fixed Term Contracts

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In the past there were various reasons why an organisation may have perceived some advantage in offering employment under a fixed term contract. Nowadays, employees on fixed term contracts may, in certain circumstances, have more rights than permanent employees. Many employers in receipt of time-limited funding or funding for a specific project (particularly prevalent in many areas of public service such as education and social care), have previously chosen to employ staff on fixed term contracts. We have come across many examples where employers have continued to issue the same contract for many years or have “borrowed” a contract from elsewhere without fully evaluating the need for, or appreciating the implications of, fixed term contracts and recent changes to employment law. These notes have been written to help EnlightenedHR clients understand the basics of the law governing fixed term contracts, recent changes to employment legislation and how that effects employment on a fixed term contract.

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