Protection for employees on fixed term work
Earlier this year, the Protection of Employees (Fixed-Term Work) Act, 2003 was introduced. As its title suggests, the Act is intended as a measure to protect those employees working under a contract of employment which is stated to be for a fixed term.
The Act provides that a fixed term employee may not be treated in a less favourable manner than a permanent employee, except where such treatment can be justified on objective grounds.
When it comes to pensions, the right not to be treated in a less favourable manner than a comparable permanent employee does not apply to a fixed term employee who normally works less than 20% of the normal hours of the comparable permanent employee. Similar protective measures were introduced in respect of part-time employees in the Protection of Employees (Part-Time Work) Act, 2001.
Employers and employees alike should be aware that, under the 2003 Act, an employer cannot indefinitely employ an employee under a series of fixed term contracts. The Act states that, in respect of those employees on fixed term contracts which commenced prior to the 14th July 2003, once the employee completes or has completed three years continuous employment with the employer, the employer may renew the contract for a fixed term on one occasion only, for a period no longer than one year.
In respect of those employees on fixed term contracts which commenced after the 14th July 2003, where the employer is employed on two or more continuous fixed-term contracts, the aggregate duration of those contracts may not exceed four years.
David Phelan
December 2003