How to employ an individual on a fixed-term contract

Author: Rob Davies

Summary

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• Decide if using a fixed-term contract rather than a permanent contract is appropriate.
• Consider whether or not to insert a break clause in the fixed-term contract.
• Ensure that fixed-term employees are not treated less favourably than comparable permanent employees, unless this can be justified.
• Consider if less favourable treatment in some terms can be balanced out by more favourable treatment in others.
• Be prepared to issue a written statement of reasons for less favourable treatment, if requested.
• Calculate annual leave entitlement for fixed-term employees in the same way as for permanent employees.
• Ensure that job adverts and job specifications clearly describe the fixed-term role.
• Include an appropriate duration provision in the written statement of terms and conditions.
• Take care when ending a fixed-term contract.
• Establish a mechanism for identifying employees on successive fixed-term contracts.
• Be prepared to issue a written statement of variation confirming a change to permanent status, if requested.
• Bear in mind the consequences of not taking action at the end of the fixed term.