Law Queries

What constitutes an unfair dismissal? Would it be legal to keep someone on a temporary contract for more than two years?

Every dismissal is potentially unfair unless it falls within the narrow range of what are termed "fair" dismissals. These are dismissals to do with the employee's conduct, capability, health and safety, redundancy or "for some other substantial reason". The last is potentially a "catch all" phrase, usually associated with dismissals where the employer seemed to have no other alternative.

All other dismissals are unfair. However, an employee needs to have worked for at least a year to be able to take an unfair dismissal complaint.

There is nothing preventing employers from offering temporary (fixed-term) contracts of two or more years. A fixed-term employee has the same unfair dismissal rights as a permanent employee. The only limits on employers on the length of fixed-term contracts is that they cannot, without justification, offer a new contract where the employee has been working continuously for at least four years and has had more than one contract.

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