Fixed-Term Contracts

It is unlawful for employers to treat part-time workers less favourably than full-time workers, unless this can be objectively justified.

A fixed term contract is a contract of employment that is agreed to be for a fixed period of time, or for the completion of a specific task, or on the occurrence or non-occurrence of an event. The expiry of a fixed term contract amounts to a dismissal by the employer, see section 95(1)(b) of the Employment Rights Act 1996.

In certain circumstances, an employee who is employed continuously under a series of fixed term contract will be deemed by a Tribunal to have become a permanent employee. Similarly, an employee who has worked under a fixed term contract of employment for two continuous years accrues the right to claim unfair dismissal and to a statutory redundancy payment.

Under the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002, it is unlawful to treat an employee or worker less favourably because of their fixed term employment status.

Similarly, it is unlawful to treat a part-time worker or employee less favourably under the Part Time Worker Regulations 2002 because of their part time status.

If you run a business that employs workers on fixed term contracts, Hanne & Co Employment Department can assist you to draft contracts of employment for fixed term or part time employees and workers and advise you on your obligations towards the employee or worker and whether, crucially, that individual would be considered to be a permanent employee or worker by the Employment Tribunal.

  • Contact Us

    Get in touch

    • To find out more about how we collect and process any Personal Data please read our Privacy Policy.