Fixed term contracts | Permanent employees

With effect from 10 July 2010, employees engaged on successive fixed-term contracts totalling four years or more will automatically become permanently employed unless the continued use of a fixed-term contract can be objectively justified.

Under the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 employees engaged on successive fixed-term contracts totalling four years or more will automatically become permanently employed.  An employer can avoid this where the continued use of a fixed-term contract can be objectively justified.

Comment

Any employer using successive fixed-term contracts should:

• consider at the time of renewal whether there are any objective grounds justifying continued use of fixed-term contracts rather than a permanent contract. Any grounds should be noted in writing.  
• consider, where the contract has already been renewed, whether there were objective grounds at the time renewal took place for the continued use of a fixed term, and those grounds noted in writing.
• should send a written statement of variation to any employee deemed to be permanent under the Regulations.

Renewal past four years will be objectively justified if the employer can show that it is:

• To achieve a legitimate objective.
• Necessary to achieve that objective.
• An appropriate way to achieve that objective.