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  • FIRST POST
    • anamenottaken
    • By anamenottaken 16th Jul 17, 11:26 AM
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    anamenottaken
    Fixed Term Contract v "Permanent" Contract
    • #1
    • 16th Jul 17, 11:26 AM
    Fixed Term Contract v "Permanent" Contract 16th Jul 17 at 11:26 AM
    What do employers see as the advantage(s) of a FTC?

    Are they just trying to avoid a potential claim of unlawful discrimination for dismissing at the one year point?
Page 1
    • sangie595
    • By sangie595 16th Jul 17, 11:41 AM
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    sangie595
    • #2
    • 16th Jul 17, 11:41 AM
    • #2
    • 16th Jul 17, 11:41 AM
    What do employers see as the advantage(s) of a FTC?

    Are they just trying to avoid a potential claim of unlawful discrimination for dismissing at the one year point?
    Originally posted by anamenottaken
    Unlawful discrimination starts from day 1 (in fact before that, as it could apply to selection procedures). There are no longer any real benefits for an employer - they are an anachronism from the days before employment rights were extended to people on FTC's.
    • jobbingmusician
    • By jobbingmusician 16th Jul 17, 11:44 AM
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    jobbingmusician
    • #3
    • 16th Jul 17, 11:44 AM
    • #3
    • 16th Jul 17, 11:44 AM
    Except that your employer (especially if in the voluntary sector) might not have the funds to employ you for longer than a year?
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    • john22
    • By john22 16th Jul 17, 11:45 AM
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    john22
    • #4
    • 16th Jul 17, 11:45 AM
    • #4
    • 16th Jul 17, 11:45 AM
    What do employers see as the advantage(s) of a FTC?

    Are they just trying to avoid a potential claim of unlawful discrimination for dismissing at the one year point?
    Originally posted by anamenottaken
    From Acas........

    Fixed Term Work
    There are a number of employee/employer relationships which are now different from the traditional 9-5 job. A person's employment status will determine their rights and their employer's responsibilities.

    People on a fixed term contract can be either an employee or worker, a fixed term employee may be:

    a seasonal or casual person who has been taken on for a peak period
    a specialist employee taken on for a project
    covering for maternity leave.
    Workers on a fixed term contract would:

    have a contract with ans agency rather than the company they are working for.
    be on a work experience placement as a student or trainee.
    be on a 'contract of apprenticeship'.
    be a member of the armed forces.
    Key points

    Fixed term contract are contracts that last for a specified time, or will end when a specified task or event has been completed.
    Employers must not treat fixed term workers less favourably than permanent employees doing the same or a similar job.
    Fixed term workers who work continually for the same employer for two years or more may have the same redundancy rights as a permanent employee.
    Contracts will normally end automatically when they reach the agreed end date.
    Employees on a fixed term contract for four or more years may automatically become a permanent employee.
    A fixed term contract terminates on a specified date or at the end of a particular project or a specific task, fixed term employees could be employed for seasonal work, casual employees taken on to cover a busy period or someone to cover for maternity leave
    • SparksAlive
    • By SparksAlive 16th Jul 17, 11:56 AM
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    SparksAlive
    • #5
    • 16th Jul 17, 11:56 AM
    • #5
    • 16th Jul 17, 11:56 AM
    Where I work, we take on FTC's for specific projects that need additional help. They usually have deadlines and the assumption is that after the deadline has passed, there won't be a need for that work anymore, so we won't need the employee.

    I don't think it's about dodging anything or avoiding responsibility because as someone else said, employee rights start from day one of employment.
    • keepcalmandstayoutofdebt
    • By keepcalmandstayoutofdebt 16th Jul 17, 12:09 PM
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    keepcalmandstayoutofdebt
    • #6
    • 16th Jul 17, 12:09 PM
    • #6
    • 16th Jul 17, 12:09 PM
    What do employers see as the advantage(s) of a FTC?
    Originally posted by anamenottaken
    Being honest with a job applicant when the work isn't there beyond so many months or weeks.
    "If you are caught in a rainstorm, once you accept that you'll receive a soaking, the only thing left to do is enjoy the walk"
    • anamenottaken
    • By anamenottaken 16th Jul 17, 12:15 PM
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    anamenottaken
    • #7
    • 16th Jul 17, 12:15 PM
    • #7
    • 16th Jul 17, 12:15 PM
    Unlawful discrimination starts from day 1 (in fact before that, as it could apply to selection procedures). There are no longer any real benefits for an employer - they are an anachronism from the days before employment rights were extended to people on FTC's.
    Originally posted by sangie595

    That's what I thought.

    I was trying to work out why an employer I know is going down the route of introducing a one-year FTC.
    • anamenottaken
    • By anamenottaken 16th Jul 17, 12:18 PM
    • 3,967 Posts
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    anamenottaken
    • #8
    • 16th Jul 17, 12:18 PM
    • #8
    • 16th Jul 17, 12:18 PM
    Except that your employer (especially if in the voluntary sector) might not have the funds to employ you for longer than a year?
    Originally posted by jobbingmusician
    But the fixed term doesn't give them any kind of advantage when they could simply give notice in the normal way for a lawful reason.
    • anamenottaken
    • By anamenottaken 16th Jul 17, 12:20 PM
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    anamenottaken
    • #9
    • 16th Jul 17, 12:20 PM
    • #9
    • 16th Jul 17, 12:20 PM
    Being honest with a job applicant when the work isn't there beyond so many months or weeks.
    Originally posted by keepcalmandstayoutofdebt

    thanks - I suppose they might think it reinforces what they may have said in an interview, advertisement and offer letter.
    • Crazy Jamie
    • By Crazy Jamie 16th Jul 17, 12:56 PM
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    Crazy Jamie
    But the fixed term doesn't give them any kind of advantage when they could simply give notice in the normal way for a lawful reason.
    Originally posted by anamenottaken
    It depends what the notice period is for the fixed term contract. It's not unusual for the notice period to be the entire term, or a large chunk of it, which obviously isn't to the employer's advantage when compared to the notice period that may apply in a contract of employment.

    There are a variety of reasons why fixed term contracts are preferred, some of which have already been mentioned. One overarching reason is flexibility; they allow companies to specifically target an area of their business in a way that they have choice over. Fixed term contracts may also, depending on the nature and wording of them, not be contracts of employment either, which can benefit one or both parties in different ways. For example, it is not unusual for consultancy arrangements to be fixed term despite with neither party wanting a contract of employment to exist as a result.
    "MIND IF I USE YOUR PHONE? IF WORD GETS OUT THAT
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    • anamenottaken
    • By anamenottaken 16th Jul 17, 1:20 PM
    • 3,967 Posts
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    anamenottaken
    It depends what the notice period is for the fixed term contract. It's not unusual for the notice period to be the entire term, or a large chunk of it, which obviously isn't to the employer's advantage when compared to the notice period that may apply in a contract of employment.

    There are a variety of reasons why fixed term contracts are preferred, some of which have already been mentioned. One overarching reason is flexibility; they allow companies to specifically target an area of their business in a way that they have choice over. Fixed term contracts may also, depending on the nature and wording of them, not be contracts of employment either, which can benefit one or both parties in different ways. For example, it is not unusual for consultancy arrangements to be fixed term despite with neither party wanting a contract of employment to exist as a result.
    Originally posted by Crazy Jamie

    I guess I'll eventually find out the detail of what is being proposed.
    • Savvy_Sue
    • By Savvy_Sue 16th Jul 17, 5:21 PM
    • 37,518 Posts
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    Savvy_Sue
    We use FTCs for maternity cover, and where we have funding for a fixed term. Even if the fixed term is three years (as occasionally it is), we prefer to be honest up front. Often we're hoping to find the budget to extend the role, but it's not guaranteed.
    Still knitting!
    Completed: 1 adult cardigan, 3 baby jumpers, 1 shawl, 2 pairs baby bootees,
    1 Wise Man Knitivity figure, 1 sock ...
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    • theoretica
    • By theoretica 16th Jul 17, 7:34 PM
    • 4,804 Posts
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    theoretica
    But the fixed term doesn't give them any kind of advantage when they could simply give notice in the normal way for a lawful reason.
    Originally posted by anamenottaken
    Being open with the employee from the start will cut down on the number of disgruntled ex-employees and poor morale from people who fear they might be next.

    Or is your questions why write the contracts fixed term rather than having everyone know it is only for 12 months, but using the same contracts as permanent staff?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
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