COUNCIL

 

Subject:        Extensions to fixed term contracts

 

Origin:            Human Resources Committee

 

 

The Employment Act 2002 included provision for new procedures for resolving disputes in the workplace.  The government has now issued Regulations to implement these procedures.  They became effective from 1 October 2004.  One aspect of the new rules is the requirement for all employers to follow minimum statutory dismissal and disciplinary procedures.  These procedures apply to all types of dismissals, including the non renewal of fixed term contracts.  Failure to follow these procedures would be likely to render any dismissal automatically unfair.  The upper limit for compensation for an unfair dismissal claim is currently £55,000.

 

The procedure requires a minimum of three steps as follows:

  1. The employer must set down in writing the nature of the circumstances that may result in dismissal and give a copy to the employee.
  2. The employer must invite the employee to a meeting where the issue can be discussed.
  3. There must be provision for an appeal against the decision to dismiss.

 

This procedure must be followed each time a contract is considered for renewal. 

 

In a small number of cases, when continuation funding is uncertain, fixed term contracts are extended on a month by month basis.  In these circumstances compliance with the new Regulations will be impossible due to time constraints.

 

The difficulties of working within this shorter timescale are also compounded by the new arrangements for work permit holders, many of whom are employed on fixed term contracts.  These staff now have to apply to the Home Office for further leave to remain in the country each time their employment is extended. However, they cannot make an application for leave to remain until the extension to their work permit has been received back from Workpermits UK.  Again, this cannot all be achieved within the very tight timescales that are currently in operation.

 

The significant distress caused for employees in this situation should also be a cause for concern.

 

The Human Resources Committee therefore recommends that the minimum duration of any extension to a fixed term, other than to conclude a project and bring an appointment to an end, should henceforth be three months.

 

Date:  November 2004