Fixed Term Contract - Benefits Package Query

LMH67

Hoping someone can advise?

I am on a 12 month fixed contract which still has 7 months left to run. Originally I was offered a permanent role, with full benefits package including an annual company bonus scheme up to 15% of basic.

They then changed their minds about it being permanent, I could only have a fixed term contract and that it would not include the bonus scheme. I have since found out the reason for the change is a block on permanent recruitment although I was told it was for a different reason at the time (my predecessor had started as a temp).

To make up for the loss of the bonus scheme,my boss raised my salary by £595 to compensate for the lack of a bonus, which I happily accepted – let’s face it, who wouldn’t.

I was recently on the gov.uk website lookingat something else for work and found info in relation to fixed term employment contracts and workers rights. Within this it says that employers must also ensure that fixed-term employees get (amongst other things) the same or equivalent benefits package.

Our HR team are stating that only applies to holiday, sick pay, pension and not to the bonus scheme.

My question is, is that correct? Or should I also get the bonus scheme. The uplift to my salary is equivalent to approx 3% and my boss has informed me that he expects the bonus to be approx 7%this year.

Yours thoughts and advice on this would be greatlyappreciated.

LittleVoice

LMH67 wrote: »

Hoping someone can advise?

I am on a 12 month fixed contract which still has 7 months left to run. Originally I was offered a permanent role, with full benefits package including an annual company bonus scheme up to 15% of basic.

They then changed their minds about it being permanent, I could only have a fixed term contract and that it would not include the bonus scheme. I have since found out the reason for the change is a block on permanent recruitment although I was told it was for a different reason at the time (my predecessor had started as a temp).

To make up for the loss of the bonus scheme,my boss raised my salary by £595 to compensate for the lack of a bonus, which I happily accepted – let’s face it, who wouldn’t.

I was recently on the gov.uk website lookingat something else for work and found info in relation to fixed term employment contracts and workers rights. Within this it says that employers must also ensure that fixed-term employees get (amongst other things) the same or equivalent benefits package.

Our HR team are stating that only applies to holiday, sick pay, pension and not to the bonus scheme.

My question is, is that correct? Or should I also get the bonus scheme. The uplift to my salary is equivalent to approx 3% and my boss has informed me that he expects the bonus to be approx 7%this year.

Yours thoughts and advice on this would be greatlyappreciated.

It should apply to bonuses - check the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations which came into force in 2002.

LMH67

Thanks Little Voice.

Have now done some more digging of my own and can see that they are way off the mark. Just now wondering by accepting a slightly higher salary whether I've shot myself in the foot? Ignorance of the law is not excuse and all that?

Might just drop the paperwork I've printed off onto my bosses desk and see what he says....................

Anyone else with any thoughts on this, you are most welcome to post

Takeaway_Addict

LMH67 wrote: »

Thanks Little Voice.

Have now done some more digging of my own and can see that they are way off the mark. Just now wondering by accepting a slightly higher salary whether I've shot myself in the foot? Ignorance of the law is not excuse and all that?

Might just drop the paperwork I've printed off onto my bosses desk and see what he says....................

Anyone else with any thoughts on this, you are most welcome to post

The amount we are talking about is minimal by the sounds of it if u accepted a rise of £600, so is it worth risking the potential of a full time position by creating a fuss?

LMH67

Thanks Takeaway_Addict. That was my thoughts on this but it wouldn't just affect me if they have been wrong in what they are doing - everyone is being employed with these contracts at the moment.

Not in it to rock the boat at all but it's worth checking out. It potentially may mean an extra £550 to me but I have the feeling they will do what they can to wangle out of it.

Have asked for a written statement of reasons for less favourable treatment so will see what that brings.

Nothing ventured, nothing gained!

Takeaway_Addict

LMH67 wrote: »

Thanks Takeaway_Addict. That was my thoughts on this but it wouldn't just affect me if they have been wrong in what they are doing - everyone is being employed with these contracts at the moment.

Not in it to rock the boat at all but it's worth checking out. It potentially may mean an extra £550 to me but I have the feeling they will do what they can to wangle out of it.

Have asked for a written statement of reasons for less favourable treatment so will see what that brings.

Nothing ventured, nothing gained!

True but no job at the end....something lost...possibly?

LMH67

I know exactly what you are saying but if we all didn't do something for fear of losing it, there would be a ton of people in a very unhappy / unfair place right now.

There is no guarantee of a job at the end of it anyway - huge changes going on. The bonus time is almost upon us and I thought I ought to sort before it comes and goes.

I have a very reasonable boss who I hope wouldn't hold my checking this out against me - we did have a quick chat this morning before I went ahead. Of course, these things can have a habit of changing opinions.

And to be honest, if I was treated that badly as a result of asking, would it be somewhere I would like to stay working?

Takeaway_Addict

LMH67 wrote: »

I know exactly what you are saying but if we all didn't do something for fear of losing it, there would be a ton of people in a very unhappy / unfair place right now.

There is no guarantee of a job at the end of it anyway - huge changes going on. The bonus time is almost upon us and I thought I ought to sort before it comes and goes.

I have a very reasonable boss who I hope wouldn't hold my checking this out against me - we did have a quick chat this morning before I went ahead. Of course, these things can have a habit of changing opinions.

And to be honest, if I was treated that badly as a result of asking, would it be somewhere I would like to stay working?

You're right but often looking after number 1 is more important than the greater good in the current times.

Fair play to you if you do go ahead.

LMH67

Just wanted to leave an update to my original query.

I made a request under the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations requesting a written statement as to why I didn't get the bonus.

The decision on this, although it took longer than the statutory time allowed has come back as a resounding success for me.

It appears that when the decision was made to bring people in on fixed term contracts rather than perm it was due to the company starting to go through a period of change - i.e. restructure - again (which is shortly to be resolved). At that time it would appear that the person at the top in HR apparently made an arbitrary decision to not pay fixed term workers the incentive bonus.

Anyway, it's gone out to legal who agree it must be paid and I got my confirmation on Friday. It is to be paid in this month's salary.

So for all of us that have started on a fixed term contract and for those who will be, it's a nice little bonus :j

Huge thanks for the advice - it was a difficult decision to make to do it but so glad I did.

agrinnall

Good news, and well done for sticking up for your rights - here's hoping it doesn't come back to bite you.

LMH67

agrinnall wrote: »

Good news, and well done for sticking up for your rights - here's hoping it doesn't come back to bite you.

Updated post given to maybe help anyone else going through a similar thing an idea of what fixed term contract workers rights are.

As for security, all I do is fixed term contracts or temp work so under no illusion or requirement that it will ever come to anything else. I wasn't and aren't bothered about taking on a permanent role due to home circumstances but no one else is to know that.

Just glad to see that some colleagues will also benefit from a simple exercise that has exposed a 'hole' in their policies. Apparently it was a long overdue issue that HR are glad has been addressed but needed someone to raise it formally with the 'powers that be'.