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Permanent employees and fixed term contracts

Posted on 29th July 2010
New legislation

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.

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Simon Quantrill Simon
Managing Partner Telephone: 01473 688100


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 of the fixed-term contract 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.

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