9 things you may not know about fixed-term contracts

11 August 2010

By Andy Humphrey

Fixed-term research contracts are hardly the most stable form of employment. However, it’s been my experience that many people take up these contracts without realising that UK law still gives them a degree of protection and certain rights. For the benefits of those new to the research lifestyle, here is a quick run-down of what those rights are.

1. First of all, employees on fixed-term contracts have the right to be treated on an equal level with permanent employees at the same grade. This principle is established by the Fixed-Term Employees (Prevention of Less Favourable Treatment) regulations 2002. If you are treated differently by virtue of being a fixed-term employee then the treatment is a form of discrimination. Any practice which disadvantages fixed-term staff in respect of, for instance, working hours, holiday entitlements, flexible working, or opportunities to attend conferences or training, is therefore unlawful.

2. The termination of a fixed-term contract is recognised in law as a redundancy.

3. As a consequence of the Prevention of Less Favourable Treatment regulations, staff on fixed-term contracts are entitled to the same redundancy arrangements as permanent staff. In pre-1992 universities these arrangements are enshrined in Statutes and usually include: several months’ formal notice of the intention to make you redundant; an active effort to redeploy you; regular formal meetings to review your situation; and a right of appeal. Arrangements may be slightly different in post-1992 universities, state-funded research institutes or the private sector, but all these employers will have procedures which must be followed if permanent staff are to be made redundant. Failure to offer this provision to fixed-term staff as well could make the termination of your contract an unfair dismissal.

4. You are entitled to redundancy pay if you have worked for more than 2 years.

5. The institution is obliged to provide “objective justification” of its decision not to re-appoint you. You have the right to appeal against the termination of a fixed-term contract if you believe there are grounds for the institution keeping you on.

6. After 4 years’ employment on two or more successive contracts, the law regards you as a permanent employee. The right to be considered permanent can be exercised by writing to the employer to request clarification of your status. The employer has to respond within 21 days and either agree that you may be considered as a permanent employee or provide “objective justification” as to why they will not consider you a permanent member of staff.

7. The Ball v. Aberdeen court case established the principle that the end of a fixed-term period of grant funding does NOT, OF ITSELF, count as objective justification for ending a fixed-term employment contract. This means that staff applying for recognition of permanent status should not be refused solely on the grounds that the grant that currently employs them is about to run out.

8. All of this means it is no longer simple for employers to hire and fire fixed-term staff on an “ad hoc” basis. Some universities have already moved away from issuing fixed-term contracts to researchers and are appointing all new research staff onto permanent contracts. Just because a contract is “permanent” doesn’t mean that you have no flexibility to move elsewhere, when you’ve gained the experience you wanted or the next dream job comes along. Equally, it’s not a cast-iron guarantee of employment in these cash-strapped times; but at least it makes it more difficult for research staff to be the first people in line for the chop when financial difficulties arise.

9. To make it even more difficult for universities, the recent tribunal ruling against Lancaster University reinforces the need for universities to take steps to mitigate against making fixed-term staff redundant. The Trade Union and Labour Relations (Consolidation) Act 1982, section 188, obliges employers to consult meaningfully with unions when more than 20 members of staff are expected to be made redundant in a 90-day period. The ruling against Lancaster reinforced the principle that “redundancies” in this context includes termination of fixed-term contracts, and strengthens the expectations on employers to do everything they can to mitigate against the redundancies.

UCU produces a “Researchers’ Survival Guide” with information on research workers’ rights and what they should be able to expect in terms of fair treatment from their employers. The Guide can be downloaded from http://www.ucu.org.uk/index.cfm?articleid=3228.