Rights of fixed-term workers

Generally, people employed on fixed-term contracts have the same rights as other employees.

For example, employees with fixed-term contracts have the normal entitlement to annual leave, maternity leave, and payslips.

The rights of fixed-term workers are protected in law. You cannot generally be treated less favourably – in other words, you must be treated at least as well as comparable permanent employees.

What is an open-ended contract?

The majority of employees work under open-ended contracts of employment, sometimes called contracts of indefinite duration. In other words, the contract continues until the employer or employee ends it.

What is a fixed-term contract?

Generally, a fixed-term contract ends on an agreed date. A fixed-term contract can be for a number of months up to a year or more.

What is a specified-purpose contract?

A fixed-term contract can also be a specified-purpose and so may not end on a specific date. Instead, the contract finishes at an agreed time when a particular task is completed.

We use the term fixed-term contract for convenience throughout this page. It also includes specified-purpose contracts.

You are a fixed-term worker if your contract lasts until a certain condition is met (known as an objective condition)

This condition could be:

• Reaching a specified date
• Finishing a specific task
• The completion of a specific event

Examples of fixed-term workers are:

• A retail worker taken on for 3 months during peak season
• A specialist taken on for the duration of a project
• A worker taken on to cover maternity leave

Who is not a fixed-term worker?

You are not a fixed-term worker if you:

• Are a temporary agency worker (where an agency facilitates your temporary placement in an organisation but you do not have an employment contract with the agency. Agency workers who are employed directly by an employment agency can be fixed-term workers)
• Are an apprentice or trainee
• Work in a publicly-funded employment scheme, for example Community Employment

Generally, people employed on fixed-term contracts have the same rights as other employees. There are also some extra legal protections for workers with fixed-term contracts.

If you are a fixed-term worker, your employer:

• Cannot treat you less favourably to your permanent co-workers. In other words, you must be treated at least as well as comparable permanent employees.
• Must be able to objectively justify any different treatment.
• Must allow you to join a pension scheme (except where your normal hours are less than 20% of the normal hours of a comparable permanent employee).
• Must help you get training to enhance your skills, career development and job mobility (where possible).
• Must tell you about any vacancies for permanent positions (can be done by a general announcement).

Protection against less favourable treatment

Employers cannot treat a fixed-term workers less favourably than a comparable permanent employee simply because they are on a fixed-term contract, unless the reasons can be objectively justified.

Objective grounds

Employers can only treat you less favourably if they have objective grounds. This means the difference in treatment is appropriate and necessary for achieving a legitimate business objective.

An example of objective grounds could be not providing you with a company car, even though a comparable permanent worker has one. This could be justified as legitimate because of the disproportionate cost to your employer of providing the car to you when you are on a fixed-term contract.

Who is a comparable permanent co-worker?

A comparable permanent co-worker works for the same employer as you, and either:

• Does the same work as you, under the same or similar conditions
• Is interchangeable with you in relation to the work done (for example, you can substitute or fill in for one another)
• Does the same work or similar work to you, and any differences between your work and working conditions are insignificant
• Does work of equal value, or of lesser value, than you

These rights are set out in the Protection of Employees (Fixed-Term Work) Act 2003.

Written statement of contract end date or event

Your employer must give you written notice of the objective condition of your contract. You must get this as soon as possible.

The objective condition is the event or circumstances that determine the contract end date.

It could be:

• Reaching a specified date
• Finishing a specific task or project
• The occurrence of a specific event

These rights are set out in the Protection of Employees (Fixed-Term Work) Act 2003.

Probation and fixed-term contracts

If your fixed-term contract has a probationary period, the length of the probationary period must be proportionate to the expected length of the contract and the nature of the work.

You cannot be subject to a new probationary period if your fixed-term contract is renewed.

These rules are set out in the European Union (Transparent and Predictable Working Conditions) Regulations 2022, which became law on 16 December 2022.

Maternity leave and fixed-term contracts

Fixed-term workers are entitled to full maternity leave. However, if your fixed-term contract ends before the last day of maternity leave, the last day of your contract counts as the last day of maternity leave.

This means that if the fixed-term contract ends during your maternity leave, your contract of employment terminates on that date. This does not affect your entitlement to the full 26 weeks of Maternity Benefit.

If your employer intends to renew your fixed-term contract, you must get a written statement by the date of renewal. The written statement should set out the objective grounds justifying the renewal and the reasons for not offering an open-ended contract.

Successive fixed-term contracts

You cannot be employed on a series of fixed-term contracts indefinitely.

You cannot be kept on successive fixed-term contracts for more than 4 years. This does not include a single fixed-term contract. For example, you can get a 5-year fixed-term contract but you cannot get 5 one-year fixed-term contracts.

If your employer wants you to continue in the job, they must employ you under an open-ended contract (also called a contract of indefinite duration or permanent contract – see ‘Introduction’).

Void terms

If your employer tries to limit the duration your fixed-term contract in a way that breaks these rules, that part of the contract does not count. Instead the contract is considered open-ended—a permanent one.

This creates a right to permanency even if the right is not claimed or acknowledged by either party at the time. This entitlement can be used even years after the contract term expires.

Exceptions

The only exception to this is where your employer has objective grounds justifying the renewal of your fixed term contract. Your employer must be able to show the renewal is appropriate and necessary to achieve a legitimate business objective.

Abuses of successive fixed-term contracts

The Unfair Dismissal Acts contain a provision aimed at making sure that successive temporary contracts are not used to avoid the employee having the protection of the unfair dismissal legislation.

Reasons for ending a fixed-term contract include the:

• Reaching a specific date
• Finishing a specific task or project
• Occurrence of a specific event

Not renewing a fixed-term contract is treated as a dismissal. When you are dismissed at the end of the contract you may have:

• Rights under unfair dismissals legislation (there are exceptions – see below)
• Rights to a redundancy payment (only if you worked continuously for at least 104 weeks under a fixed-term or specified purpose contract)

Notice periods in fixed-term contracts

Expiry of the term

Your fixed-term contract will usually expire automatically, without the need for notice, at the end of the term or project.

Ending the contract early

Employers can include a termination clause and notice period in the fixed-term contract allowing you or your employer to end the contract with notice before the contract expires.

However, any termination clause must not fundamentally undermine the essential purpose or term of the contract.

Any termination and notice provisions must be brought to your attention before you enter into the contract.

If your contract does not state a notice period, the Minimum Notice and Terms of Employment Act 1973 applies.

Dismissal at the end of a contract is not considered unfair

Dismissal at the end of a fixed-term or specified-purpose contract may be considered unfair under the Unfair Dismissals Acts.

However, the employer can prevent this by meeting these 3 conditions:

• The contract must be in writing and must set out the specific duration of the fixed-term contract or, in the case of a specified-purpose contract, the object of the contract.
• The contract must be signed by both the employee and the employer.
• The contract must contain a specific clause stating that the expiry of the contract will not make it liable to a claim under the Unfair Dismissals Acts.

When you may be able to claim for unfair dismissal

You may be able to claim for unfair dismissal if either:

• Your contract does not meet the 3 conditions above
• The expiry of your fixed-term contract was not the only reason for your dismissal and other factors determined whether your contract was renewed or extended.

Usually, you must have at least 12 months’ continuous service to bring a claim for unfair dismissal.

Your employer cannot penalise (or punish) you where you:

• Exercised your right not to be treated less favourably than your comparable permanent co-worker
• Objected to an action that is illegal under the Protection of Employees (Fixed-Term Work) Act
• Gave evidence in any proceedings under the Protection of Employees (Fixed-Term Work) Act or gave notice of you intention to give evidence

Your employer is considered to have punished you if they:

• Dismiss you, including dismissal to avoid a fixed-term contract being considered an open-ended contract
• Make an unfavourable change in your conditions of employment
• Treat you unfairly, including selection for redundancy
• Take any other action that is prejudicial to your employment

You can make a complaint to the Workplace Relations Commission about a breach of your rights under the Protection of Employees (Fixed-Term Work) Act 2003 or for unfair dismissal. You should use the online complaint form.

You must make the complaint within 6 months of the dispute taking place. The time limit may be extended for a further 6 months, if there is a reasonable cause which prevented you from bringing the complaint within the normal time limit.

For more information you can read the explanatory leaflet on Protection of Employees (Fixed-Term Work) Act 2003 (pdf). You can also contact the Workplace Relations Commission's Information and Customer Service.