Fixed Term/ Seasonal Contracts

Non-Permanent Contracts

The advice in this guidance note covers the use of fixed term/seasonal contracts. 

This type of contract is for a set period of time eg 1 April to 31 October, or maybe for a specific purpose eg for parental leave cover.

Definition of a Fixed Term Contract (FTC)

An FTC ends when:

  • A specific time period (e.g. 6 months) is reached
  • specific date is reached
  • The occurrence or non-occurrence of an event (e.g. return from maternity leave)
  • The completion of a specific task (e.g. sale of a company)
Annual Leave Entitlement
  • Minimum: 3 weeks paid leave per year (pro-rated if less that 52 weeks)
  • Leave on Public and Bank Holidays or days off in lieu
  • Pro rata leave applies after 28 days of work:
    • Example: 1.67 days/month for a 20-day annual entitlement
    • Unused leave is paid out; excess leave taken is repayable
Calculating Holiday Pay
  • If pay is regular, holiday pay equals regular wage
  • If pay is variable, use average hourly rate over 52 weeks
  • If hours vary, use average weekly hours and rate over 52 weeks
  • If insufficient data, calculate fairly; minimum wage prevails
Continuous Employment (Article 57)
  • FTCs with breaks of less than 26 weeks count as continuous employment
  • The break itself does not count toward service length
Termination of FTCs (Article 56)
  • No notice periods are set down in law for FTCS of less than 13 weeks, therefore if required specify in the contract
  • Without notice clause, employer may owe full salary even if no work is available 
  • Statutory notice applies if:
    • FTC less than 4 weeks but continues more than 13 weeks
    • FTC expected to be less than 13 weeks but extends beyond that
Dismissal and Redundancy
  • Non-renewal of FTC = dismissal, unless job ends (i.e. redundancy)
  • Employer must prove genuine redundancy
  • FTC employees may qualify for unfair dismissal protection if
    • Dismissed for conduct, capability, legal restrictions, or other substantial reasons
Unfair Dismissal
  • 52 weeks’ continuous service required to claim unfair dismissal •
  • Automatic unfair dismissal applies regardless of service if due to:
    • Trade union activity
    • Asserting statutory rights
    • Discrimination
    • Pregnancy/maternity
    • Representation rights
Parental Leave
  • Applies to FTCs
  • If the FTC ends (under the stated terms) during stage of parental leave any pay and other terms and conditions end at that point
Effective Date of Termination (Article 63)
  • With notice: date notice expires
  • Without notice: date of termination
  • FTC expiry: actual expiry date
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