{"id":2115,"date":"2022-01-25T05:20:03","date_gmt":"2022-01-25T05:20:03","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=2115"},"modified":"2022-06-08T08:02:27","modified_gmt":"2022-06-08T07:02:27","slug":"fixed-term-agreements","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/fixed-term-agreements\/","title":{"rendered":"What Are the Rules When Using Fixed-Term Agreements in England and Wales?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">As an employer, your employment contracts with your workers may not all be the same types of agreements. For example, you may have workers on <a href=\"https:\/\/legalvision.co.uk\/employment\/employment-statuses\/\">permanent contracts or fixed-term agreements<\/a>. Fixed-term agreements, also called fixed-term employment contracts or fixed-term contracts, can benefit employers as they allow you to employ your workers for a specific period known as a fixed term. As an employer, you should be aware of the different types of employment contracts, which will enable you to make sound contractual choices when employing your staff.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">This article will explain the rules when using fixed-term agreements or contracts. It will explain what a fixed-term contract is and when you may find it helpful to use one. It will also explain some of the rules when using fixed-term agreements, such as your employees\u2019 right to renew and end fixed-term agreements.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-a-fixed-term-agreement\"><span style=\"font-weight: 400\">What is a Fixed-Term Agreement?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You may have many employees on fixed-term agreements. This is where they are employed by you but for a fixed amount of time. The fixed-term is a set time and may be defined by a:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">date;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a project timeline or particular task; or<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a specific event.<\/span><\/li><\/ul>\n\n\n<div class=\"box box--icon box--info\">\n<p>A fixed-term agreement is also called a fixed-term contract of employment.<\/p>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\" id=\"when-might-an-employer-use-a-fixed-term-agreement\"><span style=\"font-weight: 400\">When Might an Employer Use a Fixed-Term Agreement?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You may use a fixed-term agreement for employees, for example, to:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">employ specialists in a particular field;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">cover sickness;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">cover a maternity role; or<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">employ seasonal employees.<\/span><\/li><\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, 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You may only do so if you can prove that you have a good business reason for this.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">For example, you must make sure that you give your fixed-term employees:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/employment\/employment-rights\/\">equal pay and conditions to other employees<\/a>;<\/span><\/li><li><span style=\"font-weight: 400\">equal benefits;<\/span><\/li><li><span style=\"font-weight: 400\">permanent job opportunity information; and\u00a0<\/span><\/li><li><span style=\"font-weight: 400\">if the fixed-term employee has worked for you for at least two years, redundancy and dismissal protection are the same as permanent employees.<\/span><\/li><\/ul>\n\n\n\n<p>However, i<span style=\"font-weight: 400\">f you do treat your fixed-term employees less favourably than other employees, they are entitled to ask you to give a written reason why. If you fail to provide this when requested or provide a cause that is not reasonable, a tribunal could find you in breach of the law.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ending-fixed-term-agreements\"><span style=\"font-weight: 400\">Ending Fixed-Term Agreements<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When employing workers on a fixed-term agreement, you are not required to give them any notice as their agreement automatically on the date agreed upon.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">However, you may end your employee\u2019s fixed-term agreement earlier than stated. This is where the employment contract says that you can do this. However, you must follow any rules regarding this as detailed in the employment contract. If the employment contract does not detail notice for ending the fixed-term agreement early, you must give the statutory notice period. Where your worker has worked for you for one month or more, the notice period is one week. Where they have worked for you for two continuous years or more, the statutory notice period is one week per year that your employee has worked for you.<\/span><\/p>\n\n\n\n<div class=\"box box--warning box--icon\">\n<p><span style=\"font-weight: 400\">You must end your fixed-term agreements according to the contract and statutory rules. Otherwise, you could be in breach of your employee\u2019s employment contract, and they could claim against you.<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"renewing-fixed-term-agreements\"><span style=\"font-weight: 400\">Renewing Fixed-Term Agreements<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">If you do not renew your employee\u2019s fixed-term agreement, it could be a dismissal. Where your employee has worked for you for at least two years, you must show them that you have an acceptable reason for failing to renew their fixed-term contract. Fair reasons can be due to:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">your employee\u2019s capability;<\/span><\/li><li><span style=\"font-weight: 400\">your employee\u2019s conduct;<\/span><\/li><li><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/employment\/make-employee-redundant\/\">redundancy<\/a>;<\/span><\/li><li><span style=\"font-weight: 400\">not abiding by a statutory obligation; or<\/span><\/li><li><span style=\"font-weight: 400\">substantial reasons. This may include where an employee was covering another employee\u2019s maternity leave. <\/span>You <span style=\"font-weight: 400\">i<\/span>nformed them<span style=\"font-weight: 400\"> at the start of their role that it would end when your other employee returned to work.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">You should note that if you fail to renew your employee\u2019s fixed-term contract but allow them to continue working, you are still required to give them notice should you wish to dismiss them. This is because you have created an implied agreement that the date your employee\u2019s fixed-term agreement ends has changed.<\/span><\/p>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">When renewing your employee\u2019s fixed-term agreement, you should do so on the same favourable terms. However, you can agree with your employee to have less favourable terms.<\/span><\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">Where you have renewed your employee\u2019s fixed-term agreement for four years or more, your employee is normally automatically considered a permanent employee. However, this may not be the case if you can objectively justify why you used a series of fixed-term contracts.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"which-workers-are-not-fixed-term-employees\"><span style=\"font-weight: 400\">Which Workers Are Not Fixed-Term Employees?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Certain workers are not <\/span>considered<span style=\"font-weight: 400\"> fixed-term employees. These are workers who:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span style=\"font-weight: 400\">are trainees, students or are on work experience;<\/span><\/li><li><span style=\"font-weight: 400\">do not have a contract with you as their employer but with an agency instead;<\/span><\/li><li><span style=\"font-weight: 400\">are an apprentice with an apprenticeship contract in place; or&nbsp;<\/span><\/li><li><span style=\"font-weight: 400\">belong to the armed forces.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Sometimes employment contracts can appear to be fixed-term agreements when they are not. Some examples are contracts which:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">state that you must give a notice period to end the contract at the date specified;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">have a fixed-term period at the outset but after that are open-ended; or<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">are \u2018evergreen contracts\u2019, which means that they are successive fixed-term contracts automatically renewed after each other.<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"key-takeaways\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When employing your staff, you may find that <a href=\"https:\/\/legalvision.co.uk\/employment\/fixed-term-contract\/\">fixed-term agreements<\/a> are suitable for some job roles. For example, you may need to cover maternity leave or have times of the year when you require extra staff as your business is busier. There are also instances where you should not use fixed-term agreements, such as when your staff are on a work placement. Where you use fixed-term contracts, you must ensure that you understand the rules around ending the fixed-term agreement early or renewing the agreement. In addition, you should know that you must not treat your fixed-term employees less favourably than your permanent staff unless you have a reasonable excuse.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help understanding the rules when using fixed-term agreements in England and Wales, our experienced <a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\">employment lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"frequently-asked-questions\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1643087709023\"><strong class=\"schema-faq-question\">What is a fixed-term agreement?<\/strong> <p class=\"schema-faq-answer\">A fixed-term agreement is also called a fixed-term contract. It is an employment contract with an end date in terms of either a given date, the end of a specific task or after a specific event.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1643087718785\"><strong class=\"schema-faq-question\">What are employees\u2019 rights when using fixed-term agreements?<\/strong> <p class=\"schema-faq-answer\">Your employees on fixed-term agreements must not be treated any less favourably than your permanent employees unless you have a good business reason for doing so.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"222bf55a0a\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/2115\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/fixed-term-agreements\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What Are the Rules When Using Fixed-Term Agreements in England and Wales?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As an employer, your employment contracts with your workers may not all be the same types of agreements. For example, you may have workers on permanent contracts or fixed-term agreements. Fixed-term agreements, also called fixed-term employment contracts or fixed-term contracts, can benefit employers as they allow you to employ your workers for a specific period<a href=\"https:\/\/legalvision.co.uk\/employment\/fixed-term-agreements\/\">Continue reading <span class=\"sr-only\">&#8220;What Are the Rules When Using Fixed-Term Agreements in England and Wales?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":564,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"994,2332,1704,2780,833,2909","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,21,408,410,444],"class_list":["post-2115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-medium-business","tag-employment-contracts","tag-fixed-term-contract","tag-fixed-term-employee"],"acf":[],"yoast_head":"<!-- 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Prior to her freelance writing work, Clare worked for UK central government in policy and communication roles. She has also run her own businesses where she founded a magazine and was editor-in-chief. She is currently studying part-time towards a PhD predominantly in international public law. Qualifications: PhD, Human Rights Law (underway), University of Bedfordshire, Post graduate diploma, Law, Middlesex University.","sameAs":["https:\/\/www.linkedin.com\/in\/ms-clare-susannah-f-4a243545\/"],"url":"https:\/\/legalvision.co.uk\/author\/clarefarmer\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/employment\/fixed-term-agreements\/#faq-question-1643087709023","name":"What is a fixed-term agreement?","acceptedAnswer":{"@type":"Answer","text":"A fixed-term agreement is also called a fixed-term contract. It is an employment contract with an end date in terms of either a given date, the end of a specific task or after a specific event.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/employment\/fixed-term-agreements\/#faq-question-1643087718785","name":"What are employees\u2019 rights when using fixed-term agreements?","acceptedAnswer":{"@type":"Answer","text":"Your employees on fixed-term agreements must not be treated any less favourably than your permanent employees unless you have a good business reason for doing so.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13326"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=2115"}],"version-history":[{"count":5,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2115\/revisions"}],"predecessor-version":[{"id":3802,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/2115\/revisions\/3802"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/564"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=2115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=2115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=2115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}