Labour Research July 2004

Law Queries

Fixed-term contracts

We have a redundancy situation and are in the process of negotiating redundancy terms. We have three employees on fixed-term contracts who have been with the company for over two years. Can the company refuse to offer them the enhanced redundancy rights that are being offered to everyone else?

Under the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002, anyone on a fixed-term contract cannot be treated less favourably in their terms and conditions of employment than someone who does the same or broadly similar work on a permanent contract.

Terms and conditions of employment include contractual redundancy payments, sothe three people on fixed-term contracts would be entitled to the same enhanced redundancy rights.

* More information: LRD booklet, Temporary workers - a guide to the new law