Updating author: Olga Aikin

On this page:
Summary
Future developments
Practical example (1)
Practical example (2)
Action point checklist
Key references
Questions and answers
Indefinite contracts
Fixed-term contracts
Probation
Part-time contracts
Nil hours and casual contracts
Agency workers
Apprenticeship and training contracts
Self-employment

Summary

4.417 There are a large number of different types of contract, from the full-time contract of indefinite duration to the casual contract or the contract of self-employment. Each contract fulfils a different need. But the flexibility they can provide is being curtailed by legislation. 

• Legislation guaranteeing employment rights is lessening the differences between the various types of contract. 
• Indefinite contracts require some flexibility to be built into them to enable the employer to change the terms to meet changing conditions. (See 4.419 Indefinite contracts)
• The definition of "fixed-term contract" has been extended to cover contracts that terminate on the occurrence of a particular event, and the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 require that employees on fixed-term contracts are treated no less favourably than those on permanent contracts. (See 4.420 Fixed-term contracts)
• Probationary contracts need adequate documentation to explain the terms and what happens at the end of the probationary period. (See 4.421 Probation)
• The Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 have given part-timers greater powers to claim equal treatment on a pro rata basis with full-time workers. (See 4.422 Part-time contracts)
• Apprenticeship contracts impose a heavy training duty on employers, and apprentices are more difficult to dismiss than other staff. (See 4.425 Apprenticeship and training contracts)
• Inadequate documentation can cause confusion as to the status of casual workers. They may have a nil hours contract or an overarching contract linking their several separate contracts into one global contract or just a series of discrete, unlinked contracts. (See 4.423 Nil hours and casual contracts)
• A worker hired from an agency may become the employee of the hirer.  The Conduct of Employment Agencies and Employment Businesses Regulations 2003, which came into force on 6 April 2004, give greater rights to agency workers and impact on the terms on which agencies supply such staff. (See 4.424 Agency workers)
• The growing number of contractors is leading to a larger number of disputes over self-employment status, but we are no nearer a satisfactory test for employment. (See 4.426 Self-employment)

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Future developments

4.418 Agency workers: In November 2008, the European Council formally adopted the Temporary Agency Work Directive (2008/104/EC), which affords agency workers equal treatment to directly employed staff. The Directive must be implemented by member states no later than 5 December 2011.