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Employer's guide to Fixed-term contracts

Part 1 of 6 in this guide.

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Last updated: 6th May 2011

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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