How to employ an individual on a fixed-term contract
Author: Rob Davies, Squire Patton Boggs
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- Decide if using a fixed-term contract rather than a permanent contract is appropriate.
- Consider whether or not to insert a break clause in the fixed-term contract.
- Ensure that fixed-term employees are not treated less favourably than comparable permanent employees, unless this can be justified.
- Consider if less favourable treatment in some terms can be balanced out by more favourable treatment in others.
- Be prepared to issue a written statement of reasons for less favourable treatment, if requested.
- Calculate annual leave entitlement for fixed-term employees in the same way as for permanent employees.
- Ensure that job adverts and job specifications clearly describe the fixed-term role.
- Include an appropriate duration provision in the written statement of terms and conditions.
- Take care when ending a fixed-term contract.
- Establish a mechanism for identifying employees on successive fixed-term contracts.
- Be prepared to issue a written statement of variation confirming a change to permanent status, if requested.
- Bear in mind the consequences of not taking action at the end of the fixed term.