It\u2019s vital for both employers and employees to understand the practical and legal differences between permanent and fixed term employment arrangements.<\/p>\n\n\n\n
A fixed term contract is a temporary employment arrangement with a specified start date and an agreed end date. This could be a fixed end date or a reference to a specified task or project reaching completion, or to a specified event. Importantly, you must be able to prove that your employee agreed to the end date.<\/p>\n\n\n\n
A standard contract of employment, by contrast, is for an unlimited period and ends only when your employee resigns, or reaches retirement age, or is lawfully dismissed or retrenched by you.<\/p>\n\n\n\n
Any employer tempted to misuse a fixed term contract in order to dodge the many legal protections given to a full-time employee should think twice \u2013 our courts do not look kindly on attempts to prejudice employees by disguising the true nature of an employment relationship.<\/p>\n\n\n\n
The contract (and any renewal contracts) must be in writing and must state the reasons justifying the stated fixed term.<\/p>\n\n\n\n
The Labour Relations Act (LRA) provides a range of protections to fixed term employees. Let\u2019s address them under two main headings.<\/p>\n\n\n\n
Simply put, you could face an unfair dismissal claim (with all that that entails) if you give the employee reason to believe that the contract will be renewed or converted to full-time employment. Anything could land you in hot water here, with particular risk areas being things like continual renewal of fixed term contracts without justification, verbal or implied reassurances of renewal, a workplace culture of renewing contracts etc. To be on the safe side, consider giving your employee specific written notice of non-renewal in good time. Every scenario will be different here, so in some instances you may be advised that multiple contract renewals are justified, in others that they aren\u2019t \u2013 specific legal advice is essential, and the bottom line is that professionally drawn contracts and clear communication are critical.<\/strong><\/p>\n\n\n\n These additional protections do not<\/strong> apply in any of these exceptions:<\/p>\n\n\n\n You can only use a fixed term contract (or successive contracts) for over three months if:<\/p>\n\n\n\n Watch out here! If you employ someone on a fixed term contract for more than three months without complying with the above, the contract is automatically deemed to be a full employment contract of unlimited duration.<\/strong><\/p>\n\n\n\n A properly drawn employment agreement that both protects your interests and complies with the law is essential \u2013 and we\u2019re standing by to help you.<\/strong><\/p>\n\n\n\n Disclaimer:\u00a0The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.<\/p>\n \u00a9 LawDotNews<\/p>\n","protected":false},"excerpt":{"rendered":" It\u2019s vital for both employers and employees to understand the practical and legal differences between permanent and fixed term employment arrangements. What is a fixed term contract? A fixed term contract is a temporary employment arrangement with a specified start date and an agreed end date. This could be a fixed end date or a […]<\/p>\n","protected":false},"author":101014,"featured_media":10988,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-10987","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment-and-labour-law"],"yoast_head":"\n
That\u2019s because \u2013 and this applies to all <\/strong>fixed term contracts in that none of the exclusions listed below apply here <\/strong>\u2013 the LRA says the termination of a fixed term contract is seen as a \u201cdismissal\u201d if:<\/p>\n\n\n\n\n
Secondly, other protections that apply only to certain employees<\/h6>\n\n\n\n
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The three-month limit, and the need for justification\u00a0<\/strong><\/p>\n\n\n\n\n
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Other things to watch<\/strong><\/p>\n\n\n\n\n