New rights for contract staff

A new law which comes into effect this week gives some fixed-term contract staff the right to a permanent job.

From July 10 2006 workers who have been continuously employed on fixed-term contracts (FTCs) for four years are able to lodge a claim for a permanent position.

The change in law, initiated by the European Union, is contained in the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002.

Any staff engaged on FTCs in July 2002, who are still working for the same employer and whose employment has been continuous, have now accumulated the necessary four year to trigger a claim.

Fixed-term contracts have become a feature of employment in many BECTU areas, especially the broadcasting sector, where members can spend many years working on short contracts that are repeatedly renewed.

"Since 2002 employers have been required by law to treat fixed term contract staff on a par with their permanent colleagues. Waiver clauses in respect of redundancy pay - a standard feature in short term contracts in the 80s and 90s - were outlawed and both groups of staff have been entitled to be treated equally in respect of pay, pensions and redundancy consultation, for example, since 2002" commented BECTU supervisory official, Sharon Elliott.

However, despite the fact that there are now few, if any, lawful monetary advantages to using FTC staff over the long term, members are still being disadvantaged by being offered insecure short contracts.

There is evidence that this affects the way they are perceived in the workplace and the extent to which an employer is prepared to invest in them, for example by offering training opportunities.

Fixed term contract workers also face problems obtaining mortgages or employment related insurance. FTC status also causes anxiety for expectant mothers or for women contemplating pregnancy.

"We hope that this new right to permanent staff status - subject to four years' continuity - will make a real difference to the individuals who should benefit immediately, and will help to limit the unnecessary use of fixed term contracts" Elliott continued.

Inevitably, there will be some circumstances in which an employer can lawfully refuse to grant permanent status after four years' FTC service. Reasons given will have to satisfy the test of "objective justification".

However situations which would justify the further renewal of a fixed term contract after four years' have yet to be clearly defined.