Fixed-term contracts: Waiver not invalidated by "extension" of fixed-term contract
This report relates to 1 case(s)
British Broadcasting Corporation v Kelly-Phillips  IRLR 294 CA (0 other reports)
A fixed-term contract for a duration of one year or more may be extended or renewed beyond its original expiry date by a shorter period without creating a new contract of employment, holds the Court of Appeal in British Broadcasting Corporation v Kelly-Phillips 8.4.98 Court of Appeal. If the terms of that extended contract are the same, or substantially the same, as those in the original agreement - save for the amendment of the fixed term - there is no dismissal, and an unfair dismissal waiver provision contained in or relating to the original agreement as varied consequently remains valid.
It is deemed to be a "dismissal", for the purposes of both the unfair dismissal and redundancy payments provisions of the Employment Rights Act 1996 (the ERA), if an employee is employed under a "contract for a fixed term and that term expires without being renewed under the same contract" (see, respectively, ss.95(1)(b) and 136(1)(b)).