Employer's guide to Fixed-term contracts
Part 1 of 6 in this guide.
Introduction
If you employ people on fixed-term contracts you can benefit from their skills without the cost of a longer-term commitment. However your fixed-term employees have certain legal rights that you must meet. Agency workers, apprentices and students on work placements don’t have the same rights as fixed-term employees.
What rights do my fixed-term employees have?
You must treat your fixed-term employees the same as comparable permanent employees unless there are objectively justifiable circumstances. This means the same or equivalent (pro-rata):
- pay and conditions
- benefits
- pension rights
- opportunity to apply for permanent positions within the business
What about tax?
You need the same tax arrangements for fixed-term employees as permanent staff.
What about pensions?
You need to offer the same pension arrangements to fixed-term employees as permanent staff.
Part 1 of 6 in this guide
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1
What rights do my fixed-term employees have?
You must treat your fixed-term employees the same as [comparable permanent employees] unless there are [objectively justifiable] circumstances.
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2
Benefits and opportunities for fixed-term employees
You can offer fixed-term employees certain benefits on a pro-rata basis.
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3
What counts as 'less favourable treatment'?
Your fixed-term employee can challenge you if they think you've treated them unfairly compared to permanent staff.
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4
How often can I renew a fixed-term contract?
By law, fixed-term employees are usually considered permanent if they’ve been working for you for 4 years or longer.
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5
I want to make my fixed-term employee redundant
Fixed-term employees have a right to statutory redundancy pay if you’ve continuously employed them for 2 years or more.
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6
Glossary - fixed-term contracts
A glossary of terms about fixed-term contracts.
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