Contracts of service for a fixed term

fixed-term contracts of service are regulated by the Contracts of Service for a Fixed Term Regulations within the Employment and Industrial Relations Act.

These regulations, which came into force by LN 429 of 2002, complement the Employment and Industrial Relations Act, insofar as fixed-term contracts are concerned.

The Contracts of Service for a Fixed Term Regulations defines fixed-term contracts as:

"...such contracts of service entered into between the employer and an employee where the end of the contract is determined by reaching a specific date, by completing a specific task or through the occurrence of a specific event".

Both the Employment and Industrial Relations Act and these 2002 regulations are clear that, in the case of fixed-term contracts, the conditions of employment must not be less favourable than those which would have been applicable had the same contract of employment at the same place of work been for an indefinite term.

Difference in treatment is only justified on objective grounds. In other words, an employee on a fixed term contract should not be treated less favourably than a permanent employee at the same place of work, unless this difference is justified. For this reason, employees on a fixed-term contract are entitled to the same benefits and conditions as employees on an indefinite contract of work.

The EIRA also provides for situations where an employee is retained in employment after the date of termination of the contract of service for a specified time or where the employee has been re-employed by the employer for a fixed or indefinite term within one year from the date of termination of a contract of service for a specified time.

In such situations, the conditions of employment must not be less favourable than those which would have been applicable, had the contract of service been for an indefinite time. In addition, the aggregate probationary period must in no case be longer than six months.

Furthermore, any employee on a fixed-term contract of service, whose contract has expired and is retained by his employer, shall be deemed to be retained on a contract for an indefinite period if this employee is not given a new contract of service within the first 12 working days following the expiry of the previous contract.

The Contracts of Service for a Fixed Term Regulations promotes the access of fixed-term contract employees to appropriate training opportunities. In fact the employer must facilitate such access to enhance their skills, career development and occupational mobility.

It also establishes a duty on employers to inform these workers of employment opportunities, which become available at the place of work, and to give such employees the same opportunity as other employees to secure work on a contract of service for an indefinite time within the place of work.

Consequently, workers on a fixed term contract are entitled to the same access to training and job opportunities that may arise from time to time for indefinite contract employees.

According to the regulations, workers who have been working with the same employer on a fixed-term contract for a period exceeding four years are subsequently entitled to an indefinite contract from then onwards if the employer cannot find objective reasons to justify the limitation of a renewal of such a contract for a fixed term.

Dr Buhagiar is the FOI's legal affairs executive.