Ending Fixed Term Contracts

1. Introduction

This is a quick and simple guide to the procedures for ending fixed term contracts that must be followed for all staff with limited tenure across the University. This includes research staff (who make up the majority of our staff on fixed-term contracts and are supported by external sponsors) and all other staff employed on fixed-term contracts (for example those engaged to provide short-term cover, and trainees).

The Employment Act 2002 (Dispute Resolution) Regulations 2004, came into force on 1 October 2004 and set out a statutory minimum dismissal procedure which must be applied to all staff. The Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 came into force on 1 October 2002 to ensure that staff on fixed term contracts are not treated less favourably than staff on similar permanent contracts. In addition, the Regulations confirm that the expiry or non-renewal of a fixed term contract is a dismissal in law on the grounds of redundancy. Therefore statutory dismissal procedures apply to staff on fixed term contracts.

This means that from October 2004, employers have been required to follow a minimum three-stage process when ending any fixed term contract. Simplified, the required process is as follows:

1. Written invitation to consultation meeting
2. Consultation
3. The right to appeal

If an employer fails to follow the minimum 3 steps the dismissal could automatically be deemed as unfair and taken to tribunal.

As a result of this legislation the University has developed a procedure for ending fixed term contracts that incorporates both the minimum steps required to comply with dismissal legislation when ending a fixed term contract and internal procedures intended to provide support to staff in these situations, such as redeployment.

2. Procedure for ending fixed term contracts

Human Resources forward notifications of fixed term contracts, of one year or over in length, that are due to cease to the head of each department approximately six months prior to their end date (for contracts that are under one year in length this notification will be sent two months prior to the end date). As the time frame required to end any employees fixed term contract should allow for consultation and notification, this gives managers sufficient notice to plan when to start this procedure.

1. Informally notify all staff of the situation preferably at least four months prior to the end date of their contract (although notice need not be given, it is good practice to give prior notification). Please see:
   • Ending of Fixed Term Contracts Schedule
2. Set up a consultation meeting with all staff where there is a possibility that their contracts will not be extended. The invitation should be in writing, advising staff of their right of representation. Please see:
   • Invitation to consultation sample letter
3. Complete the CHRIS/43 record of consultation form and forward it to Human Resources immediately after each meeting.
   • CHRIS/43 Record of Consultation on Ending of Fixed Term Contract
4. After the consultation period, write to each member of staff (copied to HR) giving them formal notification of the end of their contract. In accordance with best practice, to allow for adequate consultation and assistance with redeployment, it is recommended that the letter is sent in line with the member of staff's contractual notice period (for example, this could be as much as twenty weeks prior to the contract end date in instances where contractual/statutory notice is three months), confirming the date that their contract will end and that they have the right to appeal against the decision. Please see:
   • Formal notification sample letter
   • Appeals Procedure
5. Continue to consider redeployment opportunities within your institution; liaising with the Human Resources Division regarding opportunities throughout the University.
6. Keep in regular contact with staff up until their last day
7. You should process the individual as a leaver within CHRIS yourself to terminate employment. Please see Leaver Administration for more information.

It is essential that you notify Human Resources during the early stages of this process. This enables your HR Business Manager or HR Adviser to contact the employee about providing redeployment assistance and to write to the employee notifying them of any redundancy payment due to them.

• Redeployment guidance and process

3. Additional note

It is important to follow these procedures even when it is still not definite that a fixed term contract will cease (e.g. when waiting for the outcome of a grant application). It is safer to extend the contract at the last minute than to fail to properly consult with the member of staff. Failure to consult can result in a grievance or unfair dismissal claim, where as a minimum you may be required to pay compensation on top of any redundancy payment.

Periods of appointment and reappointment must not be used as a way of dealing with problems, e.g. as a means of avoiding the need to address conduct or performance issues. This practice would be contrary to legislation; in particular the Fixed Term Employees Regulations 2002 which state that the use of fixed-term contracts must be objectively justified.

When a member of staff is on maternity or long term sick leave these procedures must still be carefully followed. In these circumstances please contact your HR Business Manager or HR Adviser in advance of the contract end date for guidance on the best way of conducting the consultation process.

4. Employee information regarding the redeployment process

If your contract of employment (or series of contracts) was for a fixed term and is due to come to an end, the Human Resources Division will take steps to assist you to seek an alternative post if you so wish.

If you do not wish to seek redeployment in the University, you will be asked to indicate this intention on the CHRIS/43 Record of Consultation on Ending of Fixed Term Contract.

Normally the timeframe during which the redeployment process will operate will continue until either alternative employment is obtained, or the existing employment is due to come to an end.

If you indicate that you request assistance in finding an alternative post you will be contacted by the Human Resources Adviser (HRA) for your School who will provide information and the opportunity to arrange a meeting with you to discuss your redeployment options.

5. Information for further guidance

If you are in doubt about any aspect of this procedure then do not hesitate to contact your HR Business Manager or HR Adviser.

Other sources of information are:

• Background to the Procedures
• Guidance on the Dispute Resolution Regulations

• Appeals Procedure

   

This information is also available in PDF format, Ending Fixed Term Contracts PDF. 

Background to the Procedures for the Ending of Fixed Term Contracts

Dismissal

Circulars were sent out in 1999 from HR, advising institutions of an appropriate and practicable policy and procedures for ending fixed term contracts in the case of contract research staff and other unestablished staff and the holders of University offices established for fixed periods and supported wholly or partly on external or non-central funds (March 1999, ref GBO.9903.956), and for assistant staff (circular of 15 December 1999). Key points are as follows:

• The need to ensure that all periods of appointments and reappointment of staff on fixed term contracts were commensurate with the period for which funding for the post had been provided was emphasised
• The obligation to genuinely consult with staff whose fixed term contract was coming to an end and to offer suitable further employment, if available, was stressed both in the interest of good employment practice and to ensure that the University could defend claims of unfair dismissal
• Finally, institutions were referred to the disciplinary procedure as a mechanism for dealing with problems in relation to conduct or performance

Objective justification

A further circular was sent out from Human Resources Division in November 2002 concerning the EU Directive on Fixed-Term Working (Fixed-Term Employees Regulations 2002), in particular covering the need to show that each fixed-term contract could be objectively justified and, where it could not be extended beyond the end-date, was terminated fairly.

• The EU directive on fixed term working: guidance for faculties, departments and other institutions

Career management of researchers

The career management scheme, launched in May 2003, introduced a probationary period and procedure for contract research staff. It also set out the arrangements for subsequent reviews of work performance, personal development needs and career aims through an appraisal procedure (called career management review and within the University's staff review and development framework).

• Career management scheme for contract research staff

New rights for employees

A circular was sent out in October 2004 concerning the dispute resolution regulations 2004, in particular covering new provisions relating to the ending of fixed-term contracts, namely use of a standard procedure (with three steps — written statement, hearing, appeal), which includes the right of accompaniment and the right of appeal against the decision to dismiss.

• Guidance on dispute resolution regulations

Other Sources of Information

• Department of Trade and Industry
• Advisory, Conciliation and Arbitration Service

Guidance on the Dispute Resolution Regulations

What are the regulations?

These regulations (arising from the Employment Act 2002) came into force from 1 October 2004.

They set out a framework for dealing with disciplinary, dismissal and grievance procedures at work. Failure to comply with these regulations will make a dismissal unfair and lead to penalty compensation awards if a complaint is made to an employment tribunal.

How do they affect current disciplinary and grievance procedures?

Current disciplinary and grievance procedures cover the key principles laid down in the Regulations.

What are the implications for dismissal on expiry of a fixed-term contract?

The three-step procedure (consisting of written statement, hearing, appeal meeting) to be used for dismissals outside the disciplinary procedures affects the consultation process we should adopt on the expiry of a fixed term contract in two ways:

1. Right of accompaniment to the consultation meeting (the member of staff may bring another member of staff or a trades union representative, whose role as companion is more closely defined)
2. Right of appeal against the decision to dismiss (the member of staff must be advised of this right and may bring another member of staff or a trades union representative to the appeal meeting)

Additional sources of information

• Procedure for the ending of fixed term contracts: a summary of steps to be taken by institutions
• Detailed advice on individual cases is available from your HR Business Manager/HR Adviser
• Department of Trade and Industry: resolving disputes
• ACAS revised code of practice on disciplinary and grievance procedures

Appeals Procedure

A member of staff who wishes to appeal against the decision to end their fixed term contract must submit notice of their appeal in writing. This notice of appeal should set out the grounds of the appeal and state whether the appeal is in respect of the whole or in respect of any specified part of any finding of fact, decision, or sentence. In the proceedings of the appeal the member will not be entitled, except with leave of the Appeal Committee, to rely on any grounds of appeal not previously specified in the notice of appeal.

Appeal Committee

The Registrary, Academic Secretary or Director of Human Resources, whichever is appropriate, will appoint an Appeal Committee to hear the appeal in line with either the appeals process outlined in the Assistant Staff Handbook (H16–17) or the University's policy and procedures relating to disciplinary action, grievances and appeals in respect of unestablished academic and academic-related staff, whichever is appropriate.

The members of the committee will not necessarily hold positions in the member's institution. They must have no conflict of interest in the appeal, be unbiased, and have the appropriate qualifications and experience to be able to evaluate the issues under investigation. Where technical issues are involved at least one of the members will normally have the appropriate qualifications and/or experience. If it has not been possible to find an employee with appropriate qualifications and experience to be a member of the Appeal Committee, the Appeal Committee may call an expert witness to assist it in the evaluation of the issues under investigation. The Chairman may request that another member of staff attends to take notes. A member of the Human Resources Division will also be in attendance to advise on policy and procedure. The Appeal Committee will meet within fourteen days of its establishment to hear the appeal, or as soon as is reasonably practicable.

Rules of Procedure

The rules of the procedure of the Appeal Committee will be as follows:

1. The appellant may bring a recognised union representative or colleague with him or her to the appeal hearing
2. The appellant and the responsible person are encouraged to make representations in writing, which wherever possible will be exchanged prior to the appeal hearing
3. The appeal will be determined following an oral hearing from the appellant and the responsible person. The appellant and the responsible person will be entitled to make a statement and to address the Appeal Committee
4. The Chairman may set time-limits for each stage of the proceedings, including the Hearing itself, to the intent that any appeal will be heard and determined as expeditiously as is reasonably practicable
5. Following the hearing of the appeal, the Appeal Committee will consider the facts of the case and may allow or dismiss an appeal, in whole or in part
6. The decision of the Appeal Committee will be notified to the appellant and recorded in a document signed by the Chairman, giving the reasons for this decision. A confirmatory letter will be sent to the appellant within seven days
7. A copy of the document and letter will be sent to the Registrary, Academic Secretary or Director of Human Resources, whichever is appropriate, and to the responsible person
8. The Appeal Committee may decide to vary the above procedure as it deems appropriate