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Wednesday, 3 October 2023

Fixed-term employee protection

Fixed-term workers have the same minimum rights as permanent workers. Find out what a fixed-term contract is and what extra protection there is for fixed-term employees.

What 'fixed-term' means

To be a fixed-term employee two conditions must apply:

  • you must have an employment contract with the business you work for
  • your employment contract must be ‘fixed-term’, meaning it must end on a particular date, after a certain event or on completion of a task

Examples of fixed-term employees are:

  • ‘seasonal’ or ‘casual’ staff taken on for six months during a peak period (for example agricultural workers or seasonal shop workers)
  • a specialist employee taken on for the duration of a project
  • someone employed to cover during another employee's maternity leave

You are not a fixed-term employee if you:

  • have a contract of employment or other contractual relationship with an agency rather than the company you are working (for example temporary or agency workers)
  • are a member of the armed forces
  • are an apprentice, student or other trainee on a work-experience placement or temporary work scheme

Protection against less favourable treatment

Your employer must not treat fixed-term employees less favourably than permanent employees doing the same, or largely the same, job unless there is good reason to do so.

As a fixed-term employee you have the right to:

  • the same pay and conditions
  • the same or equivalent benefits package
  • access to an occupational (company) pension scheme (except perhaps where the fixed-term contract is for less than two years)
  • be informed about permanent employment opportunities in the organisation
  • protection against redundancy or dismissal because you are fixed-term

How to compare your treatment

As a fixed-term employee, you can compare your treatment to the treatment of a ‘comparable permanent employee’. They should:

  • work for the same employer
  • work in the same organisation
  • be doing the same or broadly similar work

You should also consider their skills and qualifications where they are relevant to the job.

If there is no comparable permanent employee that works in the same organisation, you can use a comparator (comparable permanent employee) in another part of your employer’s organisation. You cannot compare conditions with someone at an associated employer’s organisation.

'Objective justification' of less favourable treatment

Less favourable treatment of fixed-term employees is allowed if your employer can show that there is a good reason to do so. This is known as ‘objective justification’.

Less favourable treatment will be objectively justified if it can be shown that it is:

  • to achieve a legitimate objective, for example a genuine business objective
  • necessary to achieve that objective
  • an appropriate way to achieve that objective

For example, you are a fixed-term employee on a three month contract. A comparable permanent employee has a company car, but your employer may not offer you one if the cost is too high. Your business need to travel can also be met in another way.

Your employer should consider whether it is possible to offer fixed-term employees certain benefits in proportion to the time period they will be working (also known as 'pro rata'). For example, if you are not expected to work for the entire period that the benefit is offered for.

What to do if you feel you are being treated unfairly

First, raise it with your manager and/or human resource (HR) contact. If the matter still isn’t sorted out, ask your employer for a written statement explaining why they are treating you less favourably.

Your next step should be to make a written complaint under your employer’s standard grievance procedure.

If you cannot resolve the matter with your employer, the final option is to complain to an Employment Tribunal.

Where to get help

Visit the employment contacts page for more information on where to get help with employment issues. You can also get advice and support from your trade union.

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