Chapter 16Employing labour1 Definition.A fixed-term contract will generally be a
contract of employment that terminates at the end of
a specified term, fixed in advance, or automatically on
completion of a particular task.
2 Comparators.Both individuals must be employed
by the same employer and be engaged in the same or
broadly similar work, having regard to whether they
have a similar level of qualifications and skills.
3 Less favourable treatment.This can be in regard to
levels of pay, pension and other benefits such as bonuses.
Admission to a pension scheme may not be viable in the
case of a short fixed-term contract.
4 Written statements.A fixed-term employee who feels
that he or she has been treated less favourably has a right
to ask the employer for a written statement of reasons.
This must be provided within 21 days.
5 A tribunal claim.A fixed-term employee who thinks
that he or she has been treated less favourably may pre-
sent a claim to an employment tribunal normally after
having exhausted all internal procedures.
6 Vacancies for permanent employment.The regula-
tions give fixed-term employees a right to be informed
of available vacancies for permanent employment.
7 Transfer to permanent employment.The regula-
tions provide that where an employee is on a fixed-term
contract that has been renewed or where there is a re-
engagement on a new fixed-term contract, and where
the employee has been employed for at least four years
(excluding any period before 10 July 2002), the renewal
of the contract will take effect as a permanent contract.
The period of four years must be an unbroken one as
where one fixed-term contract has immediately followed
the previous one. The regulations, therefore, may not
correct the abuse seen in Boothv United States(1999)
where the USA employed men on fixed-term contracts
at its UK base. There were intervals of two weeks between
each one. They were not entitled to claim unfair dismissal
or redundancy because their service was not continuous,
nor would they have had four years of continuous service
to trigger the permanent contract arrangements in the
regulation. However, the employer’s conduct in Booth
may be actionable under the regulations as a ‘detriment’.
It should be noted that the first fixed-term workers
can become full-time from 10 July 2006 unless keeping
a particular employee on a fixed-term contract can be
objectively justified.465may have his own procedures but insofar as they are
out of line with the statutory procedures, in terms of
employee rights, the statutory procedures prevail. The
standard procedure most commonly invoked is set out
in the sample statement that appears in Fig 16.1.
The contract of employment:
special situationsPart-timers and those on fixed-term
contracts
It should be noted that the full range of employment
rights are available to part-time workers not employed
on ‘zero-hours’ arrangements. Furthermore, equality of
treatment is assured by the Part-time Workers (Preven-
tion of Less Favourable Treatment) Regulations 2000
(SI 2000/1551).
Part-timers: main effects of the regulations
1 Pay.Part-time employees should receive the same
hourly rate of pay as a comparable full-time worker. A
lower rate may be justified on objective grounds as where,
e.g. there is performance-related pay.
2 Overtime.Part-time employees should receive the same
hourly rate for overtime once they have worked more
than full-time hours.
3 Contractual sick pay and maternity pay.Part-time
employees should not be treated less favourably as regards
these benefits but pro rata to their pay.
4 Occupational pensions and other benefits.Employers
must not discriminate against part-time employees in
terms of access to pension schemes. Benefits, of course,
would be pro rata to their lower earnings.
There should also be pro rata equality in terms of
annual leave, career breaks and parental leave. Access to
training should also be on an equal basis.
5 Redundancy.Part-time employees must not be treated
less favourably in regard to selection for redundancy.
Fixed-term workers: main effects of the
regulations
The Fixed-term Employees (Prevention of Less Favour-
able Treatment) Regulations 2002 (SI 2002/ 2034) apply.
The main points are set out below.