Managing staff on fixed term contracts

This guide is designed to give practical advice to Heads of Department and managers in relation to staff on fixed term contracts.

In addition to this document you should read the Fixed-term Checklist and you may want to read the Legal context of the Recruitment and Management of Fixed Term Contracts and the School use of Fixed Term Contracts.

Heads of Department should be aware that in light of the Fixed-term Employees (Prevention of Less Favourable Treatment Regulations, which took effect on 10 July 2006 the School has decided to move research staff to open-ended contracts (explaining carefully that their appointments are still subject to the availability of external funding). Where funding is not being renewed or extended or if it looks uncertain you should contact Employment Relations ideally at least four months before the of the end date for advice about consulting with staff regarding the ending of their contract.

Background

Following recent legislation staff on fixed term contracts have:

• the same right as permanent staff not to be unfairly dismissed;
• the same right as permanent staff to a statutory redundancy payment;
• the right not to be less favourably treated than permanent staff unless there is objective justification; and
• the right to a meeting (after they have been sent a letter advising them that their employment may be terminated) before the termination of the fixed term contract (whether by expiry or otherwise) and a right of appeal against any such termination.

When can fixed term contracts be used?

The School only uses fixed-term contracts in very limited circumstances:

• Covering staff absence (e.g. maternity leave, sabbatical, buyout leave)
• Secondments
• Where staff are funded by external sources of funding for a limited time
• For particular projects where specialist expertise is needed
• Time limited funding allocated by the APRC

When staff are recruited on fixed term contracts, the offer of appointment will include the reasons why the post is fixed term and the expiry date of the contract. The new member of staff should therefore be fully aware of the nature of their appointment at an early stage; and this will help should the contract not be renewed.

Managing staff on fixed term contracts

There is no reason why staff on fixed term contracts should be managed any differently to staff on open-ended contracts. However heads of department and managers should be aware that staff might have concerns about their long-term job prospects. This will vary according to the circumstances in which the member of staff was recruited. For example senior postdoctoral research staff are unlikely to have any expectations of continued employment by the School; on the other hand, staff funded by the School for limited periods may have some hope if not expectation that further funding will become available. Heads of Department/managers should regularly communicate with staff on fixed term contracts about financial developments, the likelihood of grants being extended or new grants being obtained as well as opportunities for future employment. You are referred to the Fixed-term Checklist. Many academic staff and managers already have arrangements in place where they talk regularly to staff on fixed term contracts about future funding prospects and the likelihood of continued employment. It would be helpful to keep notes of these discussions but bear in mind such documents are likely to be discloseable to the employee.

It follows that temporary lecturers (regardless of length of contract) should be assigned a departmental mentor and offered appropriate career development advice.

Heads of Department should refer to the Guidance on School Use of Fixed-Term Contracts (Including Temporary Lecturers) – page 37.

Can fixed term contracts be extended?

Fixed term contracts can be renewed or extended for example if more funding becomes available. When this happens it is important that a further fixed term contract is issued without delay. Heads of Department /managers should liaise promptly with HR in these cases. The legislation makes it clear that from 10 July 2006 any member of staff who has been on fixed term contracts for four years or more and who has the contract renewed/extended will be moved to an open ended contract unless there is “ objective justification” for the continuation of the fixed term contract. Whilst this has not yet been tested in the courts, it is hoped that “ objective justification” would include the likely cessation of external funding or internal funding, marking the end of a research project or a specific time limited activity.

Are staff redundant at the end of a fixed term contract?

The expiry or termination of a fixed term contract is a dismissal under employment law.

In some cases the expiry or termination of the fixed term contract may be because of redundancy. There is a legal definition of redundancy. A summary of the situations when redundancy is likely to arise is given below.

Staff who provide cover for other staff on leave, sickness absence or who are temporary replacements for senior office holders are not recognised as redundant at the end of the contract as the post still exists; the expectation is that the regular post holder will return to their former Department.

Students on fixed term contracts who are hourly paid teachers or researchers will not be seen as redundant when their contract comes to an end (and if the work still exists) if at the time of recruitment it was clearly stated that the purpose of the fixed term offer was to share the opportunity for teaching/research experience amongst as many students as possible.

Heads of Department /managers may wish to note that whilst such staff cannot bring claims against the School for redundancy, they may be able to bring a claim for unfair dismissal unless the termination of the fixed term contract or its expiry is handled properly.

Members of staff are considered to be redundant if their fixed term contracts expire without renewal because the work they were carrying out has come to an end. Again appropriate steps, mainly involving consultation with the employee should take place to avoid the risk of an unfair dismissal claim. Further details are set out below.

How can the School avoid unfair dismissal claims?

Redundancy is a fair reason for dismissal provided that certain basic actions are taken. Heads of Department /managers should ensure that they adopt a fair basis on which to select for redundancy, noting that selection purely because they are on fixed-term contracts is likely to be unfair; advise and consult the employee affected of the risk of redundancy, allow reasonable time off to seek alternative employment; and confirm redundancy in good time before the termination date.

This is not necessarily as onerous as it sounds. In many cases, it is clear who should be made redundant because the member of staff concerned will be the only person carrying out the relevant work; and the degree of consultation required will vary from one member of staff to another. As noted before a senior post doctoral researcher who hopes to move into an academic position is less likely to have expectations of continued employment than for example a more junior research assistant. This is why action taken at the recruitment stage and during the course of the contract is just as important as that taken immediately prior to the contract ending. There is a right of appeal against the redundancy.

In cases where there is a redundancy situation at least one meeting with the member of staff and their representative is required. They also have a right of appeal.

Is redundancy payment payable?

On completion of two years’ service there is a statutory right to redundancy pay subject to the statutory ceiling of £330 per week (or one and half weeks if the redundant person is over the age of forty-one) per completed year of service. The School offers a more generous redundancy package as follows: over six months of continuous service, one week’s statutory ceiling of £330; if between two to five years of continuous service; actual weekly pay per each complete year of service; if over five years of continuous service; double the actual pay per each complete year of service. Human Resources Division can provide a redundancy statement on request.

When staff are funded from MSLs the cost of the redundancy payment should be met from that source. Members of staff who are over fifty and members of the SAUL pension scheme are entitled to take their pension if they are made redundant. This incurs a cost known as the actuarial strain. In these cases and where the post is funded from external funds (where there is usually no inbuilt provision to meet redundancy costs) the School may be in a position to provide assistance from central funds. If this is the case please seek advice from Barbara Bush, HR Director.

What steps should be taken?

• Contact the HR Director to discuss the reasons for redundancy and the selection means and to discuss what consultation should take place.
• Bear in mind the Fixed-term Checklist.

Depending on the case, more detailed advice can be obtained from the Head of Employment Relations in Human Resources.

Checklist for Heads of Department /managers for fixed term contracts and research staff

Please contact the HR Director in the first instance for advice for issues relating to academic and research staff. Gail Keeley, Head of Employment Relations should be contacted for advice on issues relating to academic support staff.

Each member of staff should be treated as an individual. The checklist below is a summary of the procedure to follow on expiry of the fixed-term contract or external funding. Please refer to the links below for more information and the detailed flowchart.

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