Bite-Size HR: The Twelfth Bite

When are fixed term contracts permitted?

Fixed term employment contracts

are employment contracts

which operate

for either a fixed period

with a start date

and end date,

or in line with the completion of a task

or event.

From December 6th 2023,

businesses can no longer engage employees

on fixed term contracts that:

Are for two or more years,

fixed term contracts

with options to renew

or extend more than once

or consecutive fixed term contracts

extending the period

for more than two years.

There are limited exceptions

to these provisions, which include:

Employees engaged to perform

only a distinct and identifiable task

involving specialist skills,

employees engaged by way

of a training arrangement,

for example,

an apprentice or a trainee.

Employees engaged to undertake

essential work

during peak demand periods

such as fruit picking

or other seasonal work,

and employees engaged

to undertake work

in emergency circumstances

or during a temporary absence

of another employee, for example,

parental leave, sabbatical

long service leave or absence

related to workers compensation.

Now, there are other exceptions,

and this can be quite tricky

and a complicated area

with potential fines and penalties

if you get it wrong.

For details

relating to additional exceptions

to extend fixed term contracts

and peace of mind

and confidence

when dealing with contract matters,

please call to speak

with one of our advisers who can assist you