Fixed Term Contract and Redundancy

sandperson

Hi there,

I'm just wondering if anyone can advise me on this. I am on a fixed term contract due to end on 31st December and a colleague has flagged up the possibility of us having a right to some form of redundancy pay as we have worked for the company for over two years.

I was under the impression that this wouldn't be the case as the contract length was always known and we are working on a 'special project' within a department.

Can anyone clarify our poisition?

Thanks in advance.

Pete111

You have rights to redundancy pay after 2 years service (like any employee) as long as you have been continuously employeed by the company (not via an agency) during this time. You should also get a notice period (confirmed in writing) and be put through a proper process.

Fixed term contract that last more than 12 months are not really worth teh paper they are written on. After this time you have the same rights as a 'permanent' employee. (ie unfair dismissal rights)


P

SarEl

Pete111 wrote: »

You have rights to redundancy pay after 2 years service (like any employee) as long as you have been continuously employeed by the company (not via an agency) during this time. You should also get a notice period (confirmed in writing) and be put through a proper process.

Fixed term contract that last more than 12 months are not really worth teh paper they are written on. After this time you have the same rights as a 'permanent' employee. (ie unfair dismissal rights)


P

This isn't entirely accurate. You certainly do have the right to redudnancy pay if you have been employed continuously for two or more years. You are not entitled to any further notice unless the fixed term contract does not contain an end date - it is good and careful practice for an employer to provide a formal notice, but a fixed term contract contains notice in itself if it is terminated on a specified date (there are also fixed term contracts which are terminated by events - these must have notice served on them).

You should also be treated in the same way as any other employee would in terms of suitable alternative employment, should it be available - but termination of a fixed term contract is a "fair" reason for dismissal, and there are reasons why many employers still use them, even though they do not restrict your rights as much as they once did. They are extensively used in the public sector - especially government departments - for the very reason that they are much easier to terminate than going through a full redundancy process for all staff.

Pete111

SarEl wrote: »

This isn't entirely accurate. You certainly do have the right to redudnancy pay if you have been employed continuously for two or more years. You are not entitled to any further notice unless the fixed term contract does not contain an end date - it is good and careful practice for an employer to provide a formal notice, but a fixed term contract contains notice in itself if it is terminated on a specified date (there are also fixed term contracts which are terminated by events - these must have notice served on them).

You should also be treated in the same way as any other employee would in terms of suitable alternative employment, should it be available - but termination of a fixed term contract is a "fair" reason for dismissal, and there are reasons why many employers still use them, even though they do not restrict your rights as much as they once did. They are extensively used in the public sector - especially government departments - for the very reason that they are much easier to terminate than going through a full redundancy process for all staff.

Cheers for the claification on the notice point - useful to know.

(we tend to give notice in advance of FTC termination anyway so the individual is fully aware)

P

SarEl

Pete111 wrote: »

Cheers for the claification on the notice point - useful to know.

(we tend to give notice in advance of FTC termination anyway so the individual is fully aware)

P

Yes, it is good practice and makes sure that everyone knows where they stand - but it isn't obligatory provided the contract contains the end date (and that the end date isn't exceeded!)

sandperson

Thanks for the advice. I've got a meeting with HR and line manager on monday so I'm going to talk about it with them then.