Contract renewal after 1st year of employment

Quickstix

I am due to complete my 1st year at my current firm (in 6 days time). But have had a meeting with my boss today, who has told me that "it is not working out".

My Contract of Employment says after written confirmation of completion of probation I will be on 3 months notice (both ways). My 6 month probation period was extended in writing by 3 months, but then actually only extended by one more month; so in effect 7 months rather than the full 9.

As yet I have not received written confirmation of 'End of Probation', but was taken to lunch by my boss congratulating me on my completion. But also as I'm still working there, and have been since then, I am assuming my notice period is now 3 months.

My company uses the 12 month rule a lot for letting people go before the completion of the 1st year in employment. Giving them the ability to just say "it isn't working out..., thanks but no thanks". As I'm only a few days off my end of 1st year, I would like to gain advice as to where I stand if they say 'thanks, but no thanks" - within the next 6 days. I'm not undergoing any performance monitoring or review process, and have been working fine since the verbal completion of my probation over two months ago.

Does the law allow companies to get away with the 12 month clause? If so, where would I stand?

A long explanation I know, but just want some advice hopefully.

Thanks

KiKi

The '12 month rule' isn't a 'clause' that your company are getting away with; it is a law about unfair dismissal. If you have less than 12 months' service you can be dismissed for any reason, as long as it's not a discriminatory one (discriminatory in law, not in your view! Ie, disability, race, gender etc).

If they dismiss you before the 12 months are up then you have no legal comeback I'm afraid. Yes, companies do this, and yes they can 'get away' with it.

ETA - changed my original post as I missed your explanation about the notice period. As I understand it - but really, this isn't my area at all - as long as your notice period doesn't take you over the 12 months, or as long as they pay you in lieu of your notice and you leave before the 12 months, then you cannot look at unfair dismissal. But it seems like this hangs on whether or not you have 'passed' probation (and therefore what notice they have to give, or what payment they have to make to ensure you leave before the 12 months are up) as to whether it's fair or not.

I don't know enough about this, I'm afraid, but hopefully SarEl or Jarndyce do and can help you.

KiKi

SarEl

Contractual notice is irrelevant for these purposes. The only notice that applies for the puposes of calculating whether you have 12 months continuous service for the purpose of calculating the right to claim unfair dismissal is statutory notice and that is one week.

Sambucus_Nigra

Your title infers that you are on a 1 year contract; but your text infers that you are not.
Could you clarify - are you on a 1 year contract that just isn't being renewed or are you on a permanent contract and you believe that you will be dismissed before the 1 year anniversary.

Emmzi

I would expect to be let go and I'd be asking for pay in lieu of notice. So the 3 months. If they ask you to work your notice you go over the year, and so they follow the conduct/ performance process or whatever.

A failure to extend your probation implies you have passed your probation.

Ewarwoowar2

If you are only a few days off 12 months' service, then you are actually protected from an unfair dismissal.

It is true that in most cases you need 12 months' service to bring a claim for unfair dismissal. However, case law has said that if you are dismissed without notice, then for the purposes of calculating your length of service, statutory notice is added on. In your case, this is one week.

So, employees actually gain the right to claim unfair dismissal if they are dismissed after their 51st week with an employer.

This means that the employer should follow a fair procedure or be at risk of losing a claim. The whole "it's not working out" will generally be unfair after the 51st week as a fair dismissal on the grounds of capability requires the employee being given a chance to improve, training and/or warnings.

Ewarwoowar2

Actually thinking about it, the 12 month fixed term contract is a sham. The ending of a fixed contract is actually a dismissal in law. So the above still applies. Plus you get additional protection under the Fixed Term Employees Regulations if you can show that the employer would not have treated a permenent member of staff the same way i.e dismissed without a chance to improve.

Uncertain

Quickstix wrote: »

As I'm only a few days off my end of 1st year, I would like to gain advice as to where I stand if they say 'thanks, but no thanks" - within the next 6 days.

To clarify what has been said above, one week's statutory notice counts for calculating the year's service for unfair dismissal protection.

Paying you in lieu of this notice doesn't get them out of the requirement.

I think technically (I'm getting a bit old and rusty!) the legal requirement is 52 weeks and not one year (one day different - two in a leap year). Somebody will confirm!!

If they were to give you a week's notice today would it take you over the magic 52 weeks?

Edit - cross posted with the above two posts.

Jarndyce

Uncertain wrote: »

I think technically (I'm getting a bit old and rusty!) the legal requirement is 52 weeks and not one year (one day different - two in a leap year). Somebody will confirm!!

It is "one year". S 108 of the ERA.

SarEl

Jarndyce wrote: »

It is "one year". S 108 of the ERA.

It is - and to further clarify, it matters very much whether the contract is fixed term or not because if it is then the contract is in itself its own notice and there is no requirement to issue separate notice. The "notice period" then only applies if notice is given within the contract period.

Hammyman

Ewarwoowar2 wrote: »

Actually thinking about it, the 12 month fixed term contract is a sham. The ending of a fixed contract is actually a dismissal in law. So the above still applies.

No it doesn't.