Fixed Term Workers Policy Contents 1. Policy Statement... 1 2. Scope... 2 3. What is a fixed term contract... 2 4. Terms and conditions of service... 2 5. When to use fixed term workers... 3 6. When can less favourable treatment be justified?... 3 7. How to renew a fixed term contract... 4 8. How to appoint the post on a permanent basis... 4 9. What happens when a fixed term contract post comes to an end and you wish to terminate the contract?... 4 10. What happens if an employer allows a fixed-term contract to expire and the employee continues working past the specified date?... 5 11. Conclusion... 5 12. Policy Monitoring... 5 1. Policy Statement 1.1. The Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 provide rights for employees on fixed-term contracts. 1.2. The City and County of Swansea will not treat employees on a fixed-term contract less favourably than employees on permanent contracts, so will be subject to the same terms, conditions, policies and procedures; and make sure that any differences in treatment that occur are objectively justified. - 1 -
1.3 The purpose of this policy is to explain the requirements of this legislation; and to outline how fixed-term contracts will be used within the Council. 2. Scope 2.1. This policy applies to all employees other than: placement students that is work experience students for not more than one year who are required to attend as part of a higher education course; employees on certain training schemes for example: apprentices, those on a training scheme provided under arrangements with the Government or funded in whole or in part by an EC Institution; agency workers, that is those who have an employment contract with a temporary work agency, but are placed with and do their work for a third party.; and school based staff where the school governing body is responsible for employment matters. 3. What is a fixed term contract 3.1. A fixed term contract is a contract that comes to an end: upon reaching a specified date; when a specific task has been completed; or when a specific event does or does not occur. 4. Terms and conditions of service 4.1. A fixed-term employee has the right not to be treated overall less favourably than a comparable permanent employee with regard to the terms and conditions of their contract, unless the Council s treatment can be justified on objective grounds. 4.2. Less favourable treatment includes the following: longer service qualifications for conditions of service and/or benefits i.e. being given a lower annual leave entitlement; less favourable access to training; or not being given the same opportunity to secure a permanent position 4.3. Fixed-term employees can compare their terms and conditions of employment with those of an employee on a permanent contract who at the relevant time was doing the same or broadly similar work having regard to whether they have a similar level of skills and qualifications required for the job. - 2 -
4.4. The Council will therefore endeavour to ensure that employees on fixed term contracts: are kept up to date about what will happen at the end of the contract; are issued with the relevant information explaining the reason for the use of the fixed term contract. have access to training; and have access to the Council vacancy bulletin. 5. When to use fixed term workers 5.1. Managers should only use fixed term workers for specific purposes. Some of the most common examples of when a fixed-term contract would be appropriate are: the job of an employee on a permanent contract needs to be covered for some reason e.g. maternity leave, long-term sickness absence or secondment; the employment is for a specific project with a fixed end date there is a temporary increase in workload, generally where the downturn is foreseeable Where there is funding for a limited period. To enable flexibility for redeployment purposes 5.2. A manager considering taking on a fixed term worker will need to consult with Human Resources and get approval from the relevant Head of Service. 5.3. Fixed term contracts should not be continually extended because there is a real risk that employment rights may be gained. Managers should be managing their establishments appropriately and effectively. 5.4. Managers must look at their establishment and their staffing regime and consider whether a fixed term contract is appropriate by weighing up the pros and cons of using them. If a vacant post is likely to be filled permanently then this must be considered at the outset. 5.5. Managers should be aware that after one year of continuous employment a worker has the right to be redeployed and any worker who has two or more year s continuous service will be entitled to receive a redundancy payment. 6. When can less favourable treatment be justified? 6.1. Where a fixed-term employee is treated less favourably than a comparable permanent employee it is only lawful if it can be justified on objective grounds. 6.2. For example: If the individual term can be justified in itself. For example, a car loan where the repayment period would be greater than the length of the contract. - 3 -
7. How to renew a fixed term contract 7.1. When a fixed term contract is due to end, managers will receive an alert from the ISIS system notifying them. 7.2. Managers will then need to discuss whether or not it is feasible to renew the contract with their Departmental Director. A contract cannot be renewed without the Director s approval. 7.3. If approval is given, the manager must notify the ISIS team who produce a letter to the employee to explain that their contract has been extended and how long for. The ISIS team will then notify Human Resources. 7.4. For employees on internal secondment with a fixed end date, please see the policy on secondments for further information. 8. How to appoint the post on a permanent basis 8.1. If it is decided to make the employee permanent in that post, managers would need to gain the Director s approval via a Delegated Powers Staffing Report. The post should normally be ring-fenced to the fixed-term contract postholder and offered to them on a permanent basis. 8.1.1. Examples of where this may not be appropriate include where the fixed-term employee: was recruited on a different job description or person specification; and is subject to formal action in connection with their performance. 8.2. Where there is more than one employee on a fixed-term contract the post should be ring-fenced to the relevant group and the Recruitment and Selection policy should be followed. Further advice is available from Human Resources. 9. What happens when a fixed term contract post comes to an end and you wish to terminate the contract? 9.1. If approval is not given to renew the post the Manager must contact Human Resources so that a meeting can be arranged, between the Manager, Employee and a representative from Human Resources. At the meeting any entitlements to redeployment or redundancy will be discussed. 9.2. The expiry and non-renewal of a fixed-term contract constitutes a dismissal in law. This is normally on the grounds of redundancy or for some other substantial reason. 9.3. Where the redundancy of a fixed-term employee is proposed: 9.3.1. Fixed term employees are in principle treated the same as other employees, except where for example; the fixed-term employee has - 4 -
been recruited specifically as an interim measure pending a reorganisation. 9.3.2. Fixed Term Contracts of 12 months or less For employees with a fixed term contract of less than 12 months, the contract will expire at its specified time, after the following steps have been taken: The employee will receive written confirmation of the decision not to renew the fixed term contract. Employees who are unhappy with their dismissal following the end of a fixed term contract should be referred to the Appeals Procedure. 9.3.3. Fixed Term Contracts lasting 12 months or more The Council s procedure on Redundancy and Redeployment will be followed for employees with a fixed term contract of more than 12 months or with sequential contracts which total more than 12 months. If the contract lasts two years or more and the contract is not renewed due to redundancy, the employee has the right to receive a redundancy payment. 10. What happens if an employer allows a fixed-term contract to expire and the employee continues working past the specified date? 10.1. A manager has a responsibility to ensure that once a fixed-term contract has expired the employee is not allowed to work past the specified date. 11. Conclusion 11.1. Fixed Term Contracts should only be entered into following full consideration of the length of time necessary to fulfil the function or complete the task. The contract should be kept under review and extended where necessary. Managers must bear in mind that, generally, the contract is for a fixed period of time and if there is no notice clause then the employee can demand to be paid to the end of the term. 11.2. After six months of continuous fixed term contracts, managers need to be pro active in looking into the reasons why such continuous contracts are being issued. For example it could highlight a change in their employment establishment, the need for better distribution of the workload. 11.3. Should you have any queries on the application of Fixed Term Contracts, please contact the Human Resources Operations Team. 12. Policy Monitoring 12.1. The Council will monitor the application of this policy and has discretion to review it at any time through the appropriate consultation mechanisms. - 5 -
12.2. Responsibility for the implementation, monitoring and development of this policy lies with the Head of Human Resources. Day to day operation of the policy is the responsibility of nominated officers who will ensure that this policy is adhered to. Version Details of Change Date Number 1.0 Introduction of Single Status 1 st April 2014-6 -