The Fixed Term Employee Regulations apply to certain fixed term contracts, designed to prevent the less favourable treatment of fixed-term employees as compared to permanent employees. Google Analytics cookies help us to understand your experience of the website and do not store any personal data. The employee’s role will become permanent on the date on which the contract was entered into (where the employee was employed on a previous fixed-term contract before the start of the current contract) or the date on which they accrued four years' continuous service - whichever is later. Click here for a full list of third-party plugins used on this site. Generally speaking, they have the same employment rights as permanent staff working at your organisation and should not be treated less favourably than permanent employees unless you have a good business reason to do so.

You should provide all FTCs with a written statement of terms and conditions or an employment contract. For some employers, fixed-term contracts are a safe way to evaluate individuals for a significant period, while for employees, it’s an effective way to get hired in a role that may not necessarily come up if you’re solely looking at permanent positions. While fixed-term contracts may seem like a great way to cut costs by avoiding severance obligations, they can also lead to unexpected liability if not implemented appropriately. The contract is for a specified period of time only.

The change in terms will also trigger the duty under the Employment Rights Act 1996 to issue a written statement of the change, which is often overlooked. If an employee is employed on a fixed-term contract of five years and the contract is renewed, again assuming that you cannot justify another fixed-term contract, the employee will achieve permanent status on the date that the contract is renewed.

For example, they may have an employee who needs to take some time out for maternity leave.

There are many types of fixed-term contracts.

If you have any questions about the pros and cons of using fixed-term contracts or you are seeking advice on drafting such a contract, call us today on 023 8071 7717 or email

Fixed-term employees will be paid in the same way as permanent employees and pay the full amount of income tax and national insurance under Pay as your Earn (PAYE), just like permanent employees do. An employee on a fixed term contract for 4 or more years (continuous service) will automatically become a permanent employee, unless you can show a good business reason not to do so. Changing a fixed term contract to permanent employment. To control which cookies are set, click Settings. Given your contractor has over 2 years’ service, you will need to show there is a ‘fair’ reason for not renewing the contract. We use cookies to optimise site functionality and give you the best possible experience. All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article. To see what cookies we use and set your own preferences please go to our Cookie Policy. a project.

The end of a fixed term contract will normally be a fair dismissal if the reason the contract needed to be fixed term was genuine, the work or funding has cease… However, those Regulations have certain exclusions, including agency workers, students doing work experience, or an apprenticeship contract. The technology to maintain this privacy management relies on cookie identifiers.

If you’re on fixed-term contracts for four or more years you’ll automatically become a permanent employee, unless an employer can show there’s a good business reason for that not to happen.

The courts have indicated that is difficult for the employer to justify renewal where it has a permanent need for the employee.

We work together as a team to give clients more than they expect. Some cookies are essential, whilst others help us improve your experience by providing insights into how the site is being used. A fixed term contractor is someone you provide with an employment contract or written statement which will terminate on a future date, or on completion of a specific task e.g.

However, employers are required, under reg.3 of the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (SI 2002/2034), to give all fixed-term employees the same opportunity to secure permanent positions in the business as they give to permanent employees.

What is an interim relief order in relation to whistleblowing? Employers repeatedly offering workers fixed term contracts instead of permanent positions is becoming a growing problem and the courts have taken notice. For further information on hiring fixed term contractors and/or permanent members of staff book your free initial meeting or contact one of our HR experts on 01865 292260 or

Fixed-term contracts can become permanent. The Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 regulation does not apply to casual staff, agency temps or freelancers/contractors. Registered Office: Portland Chambers, 66 West Street, Fareham, Hampshire, PO16 0JR. Privacy

A fixed term contractor is someone you provide with an employment contract or written statement which will terminate on a future date, or on completion of a specific task e.g. Job candidates should understand the benefits of working under fixed-term contracts.

If you have an employee who has been on two or more successive fixed-term contracts for four or more years, they will automatically become a permanent employee, unless you can show that there is a good business reason for them not to do so. You should therefore be careful when offering fixed-term contracts and ensure any prospective employees offered them are aware of their duties in relation to termination and re-engagement on new terms. For example, if you’ve been hired on a three-month contract, a company may not offer you a company car, which somebody on a permanent contract would get, because it wouldn’t be cost effective.

They will be directly employed by you and will have a permanent salary along with access to any benefits on offer by the employer. If not, then find out about other roles. We are committed to delivering the best service to our clients.

You can learn more detailed information in our Privacy Policy. Do I need to offer my employee the right to appeal if I have made them redundant? Job candidates should also understand the drawbacks of working under a fixed-term contract. Like to know more? Otherwise, if you agree to our use of cookies, please continue to browse our site.

Clicking the Accept All button means you are accepting analytics and third-party cookies (check the full list). Generally speaking, employers must not treat employees on fixed-term contracts less favourably than permanent employees doing the same job and fixed-term employees should also receive the same information about permanent vacancies in the company as other permanent employees do. The contract ends on the date stated in the contract.

If you’re looking for a permanent role, try to get an understanding of whether there’s a possibility of being kept on after your contract ends in your position. This is called ‘objective justification’.

As an employer, you and/or trade unions (or a staff association) may make a collective agreement that removes the automatic right to become a permanent employee in these circumstances. Click here for a full list of Google Analytics cookies used on this site.

An employee who has been continuously employed on successive fixed-term contracts for four years or more, will automatically become a permanent employee, unless the employer can justify the renewals.

There are occasions where fixed term contracts can become permanent, and in this article our Employment Law team discuss under what circumstances this can happen.