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Ask the Expert:X is for... Fixed Term Contracts

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Contracts can come in various forms – one of which is for a fixed term. This means that an individual is employed for a set amount of time which terminates on a specified date or after a fixed period i.e. on 1 January or after a period of six months. They often occur to cover a specific time frame such as maternity cover or during a busy period such as Christmas in retail.

It is important for employers to note that even though these employees are to be employed for a fixed period, they have the right not to be treated less favourably than a comparable employee. This can be in relation to the terms of their contract or by being subjected to another type of detriment. This means where a permanent employee at the same organisation does ‘the same or broadly similar work’, caution should be urged if it is proposed to treat the two differently. If the primary reason is their contract type, an employer will have exposed themselves to a potential claim.