What kind of contract am I on???

hen12y

Hell all,
I've read several topics of interest here over the years, but never need a question answered I couldn't find the answer too... untill now!

I've recently accepted a new job, and while I am not concerned about it too much I quite stupidly didn't think through future redundancy considerations etc. I was therefore wondering where i stand on the below terms, and key points:

1. Be employed for a fixed term of 6 months (initial term)

2. unless notified in writing 30 days prior to the expirey of a term, then the term will be extended for an aditional 3 months (renewal term)

3. Base salary is annual £xx'xxx paid monthly (NOT an hourly rate)

4. Entitled to xx days paid holiday per year

5. stakeholder pension scheme

6. healthcare + medical insurance for me + family

Well, am I a temp or am I a permanant employee for starters? Would i be eligible for redundancy pay if i was terminated in a year or 2 time? and do you know what my rights would be when compared to someone who is purely a temp, or someone who is purely a perm employee?

Thank you so much!
Henry.

Mimi_Arc_en_ciel

it sounds like you are on a temp to perm job contract. (initial) 6 months could be a "trial" period before offering you a perm job.

Did it say anything in the contract as to your company benefits? can you claim them now or do you have to work the initial 6 months?

hen12y

the benefits are available imediately, If my missus broke her leg tomorrow (which i hope she doesn't incidentally!) then she would be covered through PPP healthcare as paid for by the firm.

In practice, if you are a perm employee on 3 months notice, and they make you redundant, you're out after 3 months.

For me if they terminate me, then again i'm out after 3 months!

I cant really see much of a difference, but i'm sure there legally is one!?

12bdebt3

It seems you are on a temporary contract. Permanent would be when there is no scheduled end date to your contract. Obviously the extra 3 months would mean you are essentially on an extended temporary contract.

Your probation period could be for any period of time, I would ask the employer because they could let you go during this period with no consequences for them, i.e. they wouldn't pay your annual leave that's left, they wouldn't give you any redundancy etc.

Any money you pay into your pension would be put there and your employer will contribute to it.

As for your annual leave. It is llikely to be based on a year but pro rata, but means that it is basically halved as you have 6 months. There is a possibility they give you your full annual leave entitlement and if you use all of it before going into the addition 3 months or any other longer period contract, then you might not get any more.

To work out your salary divide it by 52 to get your weekly wage then divide that by however many hours you work. Probably 37 if you are full time.
For example:
£20,000 / 52 = £384.61 per week
£384.61 / 37 = £10.39 per hour

Hope this helps.

SarEl

Sorry - all the advice is both "right" and "wrong". It's very simple. Nobody has employment protection until 12 months; redundancy payments at 24 months. Everyone has rights under discrimination legislation from the point of application, through selection and from day one of employment. Whisleblowing protections are from day 1 of employment.

So regardless of the terms of your contract, after 12 months you must, if you are dismissed (or your contract terminated) be treated fairly in law, no matter what it says. The only exception to this is that if your contract is "fixed term" and has a specified end date, this may be an acceptable fair reason for termination at the completion of the contract. But that doesn't mean that such a termination would definitely be fair even then. In reality, what contracts are called are not as important as what happens!

Uncertain

SarEl wrote: »

Sorry - all the advice is both "right" and "wrong". It's very simple. Nobody has employment protection until 12 months;

With respect, this is also both "right" and "wrong"!

It is possible to agree contractual terms that equal or exceed the statutory protections that would normally only apply after a year's employment. These can apply from day one.

It is not uncommon when somebody is headhunted to agree severance terms in advance. For example this might include a fixed minimum employment term (or payment in lieu) or an agreement that the employer will give a very lengthy notice of termination.

Should the employer breach these terms then it is a contractual matter than can be taken to the county court regardless of length of service.

hen12y

so from an employment perspective they are almost certainly bound to pay me 3 months salary if they choose to terminate, but may not be required to pay any severance.

I would probably be treated as a temp by a bank when applying for a mortgage in the first 6 months, but not after this period.

While I may have more rights in the first 2 years than someone who is specifically employed on a temp basis, I probably dont have the same amount as someone specifically employed on a perm basis. After a 2 year period it doesn't make much difference anyway.

^Are these the main highlights then?

Thanks!

SarEl

Uncertain wrote: »

With respect, this is also both "right" and "wrong"!

It is possible to agree contractual terms that equal or exceed the statutory protections that would normally only apply after a year's employment. These can apply from day one.

It is not uncommon when somebody is headhunted to agree severance terms in advance. For example this might include a fixed minimum employment term (or payment in lieu) or an agreement that the employer will give a very lengthy notice of termination.

Should the employer breach these terms then it is a contractual matter than can be taken to the county court regardless of length of service.

True - but the OP was asking about her "rights", which are enshrined in statute, not about individually negotiated contractual terms. Negotiating additional terms as part of the contract was not the issue - the issue was what the terms of the xisting contract meant in relation to redundancy rights etc.

hen12y

SarEl wrote: »

True - but the OP was asking about her "rights", which are enshrined in statute, not about individually negotiated contractual terms. Negotiating additional terms as part of the contract was not the issue - the issue was what the terms of the xisting contract meant in relation to redundancy rights etc.

ah hem... his!

SarEl

hen12y wrote: »

so from an employment perspective they are almost certainly bound to pay me 3 months salary if they choose to terminate, but may not be required to pay any severance.

I would probably be treated as a temp by a bank when applying for a mortgage in the first 6 months, but not after this period.

While I may have more rights in the first 2 years than someone who is specifically employed on a temp basis, I probably dont have the same amount as someone specifically employed on a perm basis. After a 2 year period it doesn't make much difference anyway.

^Are these the main highlights then?

Thanks!

Not entirely. I can't say what a bank will decide - they are laws unto themselves. But even "temps" accrue all the same rights as "permanant employees" - that is what I meant in saying that what the contract is called is less important than what it says and the circumstances around it. After 12 months continuous employment nobody can be unfairly dismissed (or legally speaking that is the case). That right extends to everyone whether "temp" or "perm" or "fixed term". The same is true about statutory redundancy rights - 24 months for everyone.If you have a "temp" or "fixed term" contract, after four years you are regarded as "permanant" in law. The fact is that there used to be a lot more differences between all these "contract types" but over years the differences have been eroded and only very small remnants of the "old ways" exist. One of these is, as I previously mentioned, that terminating a fixed term contract at its end date, up to the four year mark, may be fair in itself - but after 2 years you are still entitled to redundancy, so for most practical purposes the difference is nearly nothing.

SarEl

hen12y wrote: »

ah hem... his!

Sorry - assumed it was "hen"! As in "chick"!