How to employ an individual on a fixed-term contract

By Rob Davies

Contracts of employment are typically for an indefinite term, ie a contract will remain in force until one of the parties terminates it. By contrast, a fixed-term contract, as defined by the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (SI 2002/2034), is a contract of employment that provides that it will terminate on the expiry of a fixed term (ie it has an agreed termination date); completion of a particular task or project; or occurrence or non-occurrence of any other specific event.

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• When to use a fixed-term contract
• Termination prior to the end of a fixed term
• Protection from less favourable treatment
• Pro rata principle
• Justifying less favourable treatment
  • Term-by-term approach
  • Package approach
• Written statement of reasons for less favourable treatment
• Calculating annual leave entitlement
• Job adverts and job specifications
• Written statement of terms – duration of fixed term
• Ending the fixed-term contract
  • Collective redundancies
  • Misconduct/performance dismissals
• Successive fixed-term contracts
• Written statement of variation to reflect permanent employment status
• Extending a fixed-term contract
• Failing to take action at the end of the fixed term

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