Fixed-term and temporary contracts policy

Policy overview

We aim to recruit and retain high-calibre employees to enable us to provide quality services. We engage the services of a variety of employees and workers, in addition to our permanent employees. This policy guides the management of fixed-term and temporary contract employees.   

Definitions

A fixed-term contract is defined, in accordance with The Fixed-term (Prevention of Less Favourable Treatment) Regulations 2002, as:

“A contract of employment that is due to end when a specified date is reached, a specified event does or does not happen, or a specified task has been completed”

  • A fixed-term contract is a contract of employment for a fixed period. It has a known end date or length of contract  
  • A temporary contract is a contract where the end date or length of the contract is unknown. The contract will indicate the anticipated length of the contract. The contract should also state the reason for the temporary status. 

We will only use temporary or fixed-term contracts for approved vacancies. We will not use these contracts to cover for a post awaiting approval or funding. Managers should complete the vacancy approval process for any vacancy. This includes vacancies which may be filled by a fixed-term or temporary contract.   

For more details, read the recruitment policy

Recruiting fixed-term or temporary employees

Advertising a fixed-term or temporary contract   

The advert will specify the length of the appointment and the purpose of the contract. If we are aware there is a possibility it will become permanent or renewed, we will include this in the advert and would always encourage those interested in the role to apply.  

Filling a vacancy which a fixed-term or temporary employee is covering

If it becomes possible to fill a fixed-term or temporary post permanently, employees on the 'at risk' register will have prior interview consideration. This is in line with the redeployment policy.  

If there are no such permanent employees, we may offer the post-holder a permanent contract when:  

  • they have a minimum of six months or more continuous service if they have moved roles internally
  • they have successfully completed a probationary period with LCC, if recruited specifically for this role
  • they were subject to an appropriate recruitment process, including a competitive interview, for that specific post at the outset, and
  • the possibility of it becoming permanent was made clear during the recruitment process, where this could be reasonably foreseen at this point

Where more than one employee meets these criteria, a shortened recruitment process of expressions of interest followed by a selection process will be followed.

If the post-holder does not meet the above criteria, we will advertise the post in line with our normal recruitment procedures. The manager will meet with post-holder to inform them that we will advertise the post. If they are subsequently unsuccessful at interview, we will follow the dismissal process.  

Fixed-term or temporary employees applying for secondment or fixed-term posts   

We will give prior consideration to permanent employees on the 'at risk' register for secondment and fixed-term opportunities. If there are no suitable permanent 'at risk' employees available, we will consider fixed-term or temporary employees.  

We may appoint a fixed-term or temporary employee to a secondment or fixed-term contract (FTC). If their existing temporary contract expires before the end of this post, we will give them a new contract.  

Rights of fixed-term and temporary employees

Fixed-term and temporary employees are entitled to the same terms and conditions as comparable permanent employees. There may be grounds to apply different terms where there is an objective reason for doing this. Managers should discuss this with HR.  

The fixed-term employees (Prevention of Less Favourable Treatment Regulations 2002) give fixed-term or temporary employees rights, including:  

  • not to be treated less favourably than a comparable employee on a permanent contract. This applies to pay and contractual terms and conditions  
  • the opportunity to receive training  
  • not to be subject to any detriment on the grounds of status  
  • entitlement to a statutory redundancy payment where the dismissal of a fixed-term or temporary contract gives rise to a redundancy situation. This does not usually apply if the dismissal is for 'some other substantial reason'. This could include if the person was brought in to provide temporary cover, generally for less than two years 
  • not to be selected for redundancy, or be unfairly dismissed, if the principal reason is that they are on a fixed-term contract  
  • limiting the use of successive fixed-term contracts to no more than four years. After that time a fixed-term or temporary contract should become permanent. This will not apply if the continued use of a fixed-term contract is justified on objective grounds  
  • to be informed of, and have access to, information about permanent employment opportunities within the organisation  

We may exceptionally justify different terms and conditions for employees on fixed-term or temporary contracts.  

The same policies and procedures apply to a fixed-term or temporary contract holder as to permanent employees. This includes, but is not limited to:  

  • probationary periods 
  • the appraisal process  
  • adhering to our code of conduct  
  • disciplinary  
  • capability  
  • sickness attendance  
  • the right to raise a grievance   

Managers have an essential role in protecting and improving the health and wellbeing of their employees. This includes those on a fixed-term or temporary contract.  

Fixed-term or temporary contract holders will benefit from policies which support this. This includes flexible working and learning and development. They are eligible as per the family leave policy to:  

  • maternity  
  • adoption  
  • paternity   

This is on condition that they satisfy the eligibility criteria.

Extension of a fixed-term or temporary contract

An employee on a fixed-term contract will achieve permanent status after four years' continuous service unless there is an objective reason that justifies further renewal for a fixed term. If managers believe an objective reason to do this applies they will discuss this with HR and with the employee.    

The employee will become permanent on the later of:  

  • the date on which the contract started, if employed on a previous fixed-term contract 
  • the date the contract was renewed  
  • the date on which they accrued four years' continuous service  

For example:  

  • The employee is employed on a fixed-term contract of three years. The contract is renewed for a further two years. The employee will achieve permanent status when they accrue four years' service.  
  • An employee is on a fixed-term contract of five years. The contract is renewed. The employee will achieve permanent status on the date on which the contract is renewed.  

This provision does not limit the length of a first fixed-term contract, which can be of any length.  

If managers feel there is a reason to renew a fixed-term contract further, they should discuss this with HR and the employee.  

Termination of a fixed-term contract

We regard the following as dismissal:  

  • termination of a fixed-term or temporary contract  
  • non-renewal of a fixed-term contract beyond its expiry date   

We will follow our standard procedure:  

  • A manager in the relevant service area, with the authority to dismiss, will write to the employee. They will inform them that their fixed-term or temporary contract is not being renewed. This will result in the termination of employment on the grounds of redundancy or some other substantial reason (SOSR). They will arrange to meet the employee as soon as possible.   
  • We will give the employee five working days' notice of this meeting. We will inform them of their right to be accompanied by:   
  • a work colleague  
  • trade union official   
  • a recognised trade union representative  

The meeting will take place before the start of the required notice period.  

The employee may confirm that they understand the fixed-term or temporary contract is due to end, and they do not wish to attend the meeting. We will then issue the relevant dismissal letter.  

If they wish to attend the meeting, we will advise the employee of:  

  • the reasons for the end of the contract  
  • the grounds of the dismissal  
  • termination arrangements  

The employee will be able to ask any questions. Following the meeting, we will confirm the outcome in writing.   

The employee has the right to appeal against their dismissal, as per our appeal policy. They must exercise this right within ten working days of the receipt of their termination letter.    

The reason or grounds for their dismissal will be either:   

  1. Redundancy - where the requirement for the work to be undertaken has diminished or ceased. This may include employees recruited to:  
    • carry out the completion of a specific task. This could include project work that is dependent upon external funding. The post will end once the funding ceases or we cannot find further funding  
    • carry out a specific task that they complete ahead of time  
    • provide additional employees and the provision of services then reduces or ceases  
    • a temporary post in a redundancy situation, to avoid immediate redundancy. If we do not offer the employee an extension or renewal, we will typically dismiss them for redundancy. In such cases, ending their extended employment is due to the original redundancy situation  
  2. Some other substantial reason (SOSR). For example:  
    • an employee recruited to cover secondment of the substantive post holder
    • an employee recruited to cover a vacancy whilst we undertake recruitment
    • an employee recruited to provide cover for maternity or adoption leave. The substantive post holder returns    

The entitlement to any redundancy payment depends on whether:   

  • the employee has completed two years' service  
  • the reason to not offer renewal of the contract is redundancy. The employee will be entitled to redundancy if:  
  • we propose to terminate a fixed-term contract early  
  • we propose to terminate a temporary contract by notice due to the same conditions as redundancy