Employers urged to be ready for law change
Sep 17 2002
Employers have been urged to review pay and benefits packages before a change in legislation on fixed-term employees comes into effect on 1 October.
The new laws – The Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations – require employers to treat fixed-term workers in the same way as permanent staff doing the same or broadly similar work.
They will apply to employees with contracts that last for a specific time period or expire when a certain task is completed. Examples of these would be staff covering maternity leave or a temporary worker compiling a database.
Under the laws, employers must bring the terms and benefits for fixed-term staff into line with those for permanent workers, which includes pay, holiday and any benefits that permanent staff receive. Fixed-term workers must also be informed of any permanent vacancies that arise in the company. The terms and conditions of fixed-term workers’ existing employment contracts may need to be amended from 1 October.
All employers must abide by the new rules and make fixed-term workers aware of it. A worker who feels they are treated less favourably can present their case to an employment tribunal. If the case is upheld an employer can be charged so it may be worthwhile settling disputes in-house.
However, less favourable treatment can be justified if it can be proved to be for a legitimate business objective. An example of this would be if a fixed-term worker’s permanent equivalent had a company car. If the fixed-term employee were only on a three-month contract, a cheaper travel equivalent would be justified.
The full text of the regulations is available on the Department of Trade & Industry website at www.dti.gov.uk/er along with guidance notes on compliance. Further help and some frequently asked questions can be found at www.acas.org.uk, the website of the Advisory, Conciliation and Arbitration Service.
(17/9/02)