Q: I run a small business and I need to employ somebody as a project manager. Am I able to employ this person on a one year contract and what rights do they have as an employee if we do this?
Jan 16 2012
Answered by: Peter Done Ask a question
Yes, you can do this. What you would normally do in these circumstances is hire someone on a fixed term contract. This specifies the date on which the contract would end so that you both know where you stand. Some companies will put a specific clause in the contract setting out the basis upon which the contract might be extended or renewed and how that would work.
When setting up a fixed term contract it is important to make sure it includes the right to end the contract early with notice otherwise you run the risk of not being able to end it if it becomes clear that it isn't working out.
Employees on a fixed term contract have exactly the same rights as your permanent staff. You may be able to justify different terms if they are no less favourable but that is something that needs to be considered taking into account the full circumstances.
Non-renewal of a fixed term contract does constitute dismissal so the fact that this is a one year contract, will not offer you any more protection against a dispute than having them on a permanent contract would. However, setting out the intended fixed term duration does mean that you both know what to expect. You should meet with this employee at various times to discuss how the work is progressing and you should make sure that you correctly give notice when it is due to end rather than just expecting it lapse in silence.
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