Fixed Term Contracts

In Ireland employees on fixed-term contracts have broadly similar rights to those on open-ended contracts. The majority of employees work under open-ended contracts of employment. In other words, the contract continues until such time as the employer or employee ends it. Many other employees however, work under fixed-term contracts.

The term, fixed-term employee, covers employees whose contract ends on a specified date, or when a specific task is completed, or when a specific event occurs. Generally, a fixed-term contract ends on an agreed date. The period of such a contract may range from a matter of months up to a period of a year or more. However, a fixed-term contract can also involve a specified-purpose and so may not end on a specific date. Rather, it is agreed that the contract will finish when a particular stated task is completed, such as replacing an employee while she is on maternity leave. The expression, fixed-term contract, is used for convenience here. It also includes specified-purpose contracts.

Rights of employees on fixed-term contracts
Generally speaking, people employed under such contracts have the same rights as other employees. For example, employees with fixed-term contracts have the normal entitlement to annual leave (holidays), maternity leave, and wage slips. The Terms of Employment (Information) Act 1994 requires that employees with a fixed-term contract get written notice of the expiry date.
The Protection of Employees (Fixed-Term Work) Act 2003 applies to most employees on fixed-term contracts. However, it does not apply to agency workers, to apprentices and trainees, and to people in publicly-funded employment schemes such as Community Employment. The Act provides that fixed-term employees may not be treated less favourably than comparable permanent employees unless the employer can objectively justify the different treatment.
Any justification offered cannot be connected with the fact that the employee is on a fixed-term contract. The definition of comparable employees, the conditions attached and the enforcement mechanisms are similar to those for part-time employees.
Only those fixed-term employees whose normal hours of work are less than 20% of the normal hours of the comparable permanent employees can be excluded from entitlement to join a pension scheme.
As far as is practicable, an employer is required to help a fixed-term employee to access training to enhance skills, career development and job mobility.

Written statement
An employer must provide a fixed-term employee with a written statement as soon as possible, outlining what will trigger an end to the contract. That is, whether the contract will end on a specific date, following completion of a specific task or a specific event. In addition, where an employer intends to renew a fixed-term contract, a written statement must be supplied to the fixed-term employee not later than the date of renewal, setting out the objective grounds justifying the renewal and the failure to offer an open-ended contract.
Employers are obliged to inform fixed-term employees of vacancies for permanent positions. This may be done by means of a general announcement.

Dismissal
When an employee is dismissed at the end of the contract the unfair dismissals legislation applies as normal unless the employer has availed of the provision to exclude the operation of the legislation. To avail of that provision, the employer must put the contract in writing. The employer must include a clause stating that the Unfair Dismissals Acts 1977-2001 will not apply where the only reason for ending the contract is the expiry of the fixed term, or the completion of the specified purpose. Both the employer and the employee must sign the contract.

Renewal of fixed-term contracts
There are two possible situations where this arises:
Employees on fixed-term contracts which commenced before the passing of the Act (14 July 2003):
Once such an employee completes or has completed three years' continuous employment with their employer or associated employer (any or all of the three years' service may have occurred prior to the passing of the Act) the employer may renew the contract for a fixed term, on one occasion only. The renewal may be for a period of no longer than one year.

Employees on a fixed-term contracts which commenced after the passing of the Act:
Where such an employee is employed by their employer (or associated employer) on two or more continuous fixed-term contracts, the aggregate (or combined) duration of those contracts may not exceed four years.
However, these rules do not apply where there are objective grounds justifying the renewal of a contract of employment for a fixed term only.
Where a renewal of a fixed-term contract does not comply with these requirements and cannot be objectively justified, the contract is treated as an open-ended contract.

The Unfair Dismissal Acts 1977-2001 contain a provision aimed at ensuring that successive temporary contracts are not used in order to avoid that legislation. Where a fixed-term or specified-purpose contract expires and the individual is re-employed within three months, the individual is deemed to have continuous service.
Therefore, even where an employer excludes the unfair dismissals legislation in the manner described above, a Rights Commissioner or the Employment Appeals Tribunal will consider whether the use of such contracts was wholly or partly to avoid the employee having the protection of the unfair dismissals legislation. If it is considered that this was the case and the contracts were not separated by more than three months and the job was at least similar, then the case can be dealt with as if there was continuous employment and the employer will be required to justify the dismissal in the normal manner.

How to apply
Claims under the Protection of Employees (Fixed-Term Work) Act 2003 may be brought to a Rights Commissioner.
Claims for unfair dismissal may be brought either to a Rights Commissioner or the Employment Appeals Tribunal.
An employer is prohibited from victimising a fixed-term employee who seeks to avail of rights under the Protection of Employees (Fixed-Term Work) Act 2003. Victimisation includes dismissal in order to avoid a fixed-term contract being considered an open-ended contract.

Further information is available from the Union or from the National Employment Rights Authority, Government Buildings,O'Brien Road, Carlow, Ireland. Tel: (059) 917 8990. Locall: 1890 80 80 90. Homepage: http://www.employmentrights.ie Email: info@employmentrights.ie