Employers urged to review use of fixed-term contractsOn 1 Dec 2000 in Personnel Today Previous Article Next Article Employers need to review their use of fixed-term contracts and whether thoseemployed under them should become permanent workers, advisers have warned. The final nail for such contracts will be hammered home in June 2001, whenthe Fixed Term Contracts Directive is due to be implemented in the UK, saidhead of employment at Osborne Clarke OWA, Nicholas Moore. The directive prohibits an employer from unjustifiably treating a fixed-termcontractor less favourably than a permanent employee. It will compel employersto consult workers’ representatives over the use of fixed-term contracts, andwill allow the UK Government to cap the number of times a fixed-term contractmay be renewed. “Combine these aspects with the obvious disadvantages of a fixed-term contract– that without good reason or an appropriate break clause, early terminationwill result in a claim for damages – and you wonder whether there is anypoint,” Moore said. There might be a future for fixed-term contracts among apprentices, headded, since less favourable treatment will still be allowed in their case. Those on fixed-term contracts of more than two years can still agree towaive their right to redundancy payments, but such advantages will be marginal.Employers should take these into account and adopt a clear policy on fixed-termcontracts, such as bringing benefits packages into line with those forpermanent contracts. Death of a contract1983: House of Lords held practiceof breaking continuity of service for fixed-term workers by inserting breaksbetween terms would fail, unless break was substantial.October 1999: Governmentoutlawed practice of getting fixed-term workers to sign away unfair dismissalrights.June 2001: Fixed-TermContracts directive to be incorporated into UK law, prohibiting employers fromunjustifiably treating fixed-term workers less favourably than permanent ones. Comments are closed. Related posts:No related photos.