By Andrew Steele - 12 May 2017
Fixed term employment agreements have been around for a while
now. However, people are still unsure about rules around them.
Sometimes employers think a fixed term employment agreement might
be a good way to test someone's suitability. Or they may be
unsure about whether they need someone long term and want the
flexibility of renewing a contract only if required.
To have a genuine fixed term
employment agreement, there must be a genuine reason based on
reasonable grounds for ending the employment. The Courts have held
that testing an employee's suitability is not considered a "genuine
reason" for ending employment. They have also held that a series of
"fixed term" agreements that roll over could give the employee an
expectation that the employment will continue and deem the employee
a permanent employee.
There are several requirements for a
fixed term employment agreement to be effective. If these are not
complied with, the employee may be deemed to be a permanent
employee. This means that ending the employment on the basis that
the employment was on a fixed term basis may give rise to a
personal grievance claim.
If you're in a fix over your fixed
term contracts, contact our employment law specialists today.
Contacts
Employment law team