FIXED TERM CONTRACTS AND EXTERNALLY FUNDED APPOINTMENTS OF A
LIMITED DURATION
1.
Policy and legislative context
1.1
It is the University of Greenwich’s policy to employ staff on open-ended, or
permanent, contracts other than where objective justification exists for
employing them on alternative forms of contract (e.g. fixed-term contracts,
consultancy agreements). This is consistent with the spirit and provisions of
the Fixed Term Employee (Prevention of Less Favourable Treatment)
Regulations 2002 which aims to limit the use of fixed-term contracts.
1.2
The standard legal definition of a fixed-term contract is as follows:
A contract of employment which is due to end when a specified date is
reached, a specified event does or does not happen or a specified task
has been completed.
1.3
Agency workers (“temps”), apprentices, students or other trainees on work
experience placements or temporary work schemes are not included within
the terms of the legislation.
2.
Fixed term contracts
Justification for issuing a fixed-term contract
2.1.1 A fixed-term contract will only be issued when an objective justification exists
for why an open-ended contract should not be offered. Normally this will be for
one of the following reasons:
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Training or career development, linked to a structured course or
programme of instruction which is of a set duration.
‘Cover’ during a period of extended staff absence (e.g. for reasons of
sickness, maternity leave, sabbatical, secondment) and when that member
of staff is expected ultimately to return to their previous post.
Secondments from another employer.
When specialist skills or expertise are required which are not already
available within the workforce, and which is for a strictly limited time period
and purpose (e.g. for a project or initiative).
For new areas of work activity which are subject to a ‘pilot’ phase or review
period as a precursor to whether they become, or remain, an established
part of a Faculty’s or Directorate’s activities.
When legal restrictions apply to the period in which an individual can be
employed (e.g. when there are work permit constraints).
For continuation of employment beyond the University’s normal retirement
age.
2.1.2 Fixed-term contracts will state the reason why a fixed-term appointment has
been made. An employee has the right to have explained to them by
management the reasons why they have been appointed on a fixed-term
rather than open-ended contract.
2.1.3 The finite nature of external funding arrangements is no longer an objective
justification for a fixed-term contract (see 3 below).
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Entitlements
2.2.1 The Fixed Term Employee (Prevention of Less Favourable Treatment)
Regulations 2002 confers on fixed-term contract employees a right to the
same treatment and entitlements as staff employed on open-ended contacts,
unless an objective justification for differential treatment exists. This is
unlikely. In effect this means that fixed-term contract employees are entitled to
the same rates of pay and benefits (including pension), training and
development, promotion and career development opportunities, and
consideration for internal job vacancies etc, as their colleagues on openended contracts.
2.2.2 Fixed-term contract employees with two or more year’s continuous service are
entitled to statutory redundancy payments.
2.2.3 Managers must consult the Human Resources Directorate in any instances
where they believe it is justified to offer lesser entitlements to an individual
who is to be employed on a fixed-term contract.
2.2.4 Fixed-term contract employees who believe they have experienced less
favourable or detrimental treatment compared to colleagues on open-ended
contracts can request a written statement from management explaining the
reasons why. Management is obliged to respond within 21 days of any such
request. The Human Resources Directorate should be consulted in such
cases.
Expiry of fixed term contracts
2.3.1 The expiry of a fixed-term contract is regarded in law as a dismissal. This
means that employers have to justify the failure to renew a fixed-term contract
in much the same way as other kinds of dismissal in order to defend unfair
dismissal proceedings.
2.3.2 The University’s policy is to avoid staff redundancies as much as possible.
This applies as much to fixed-term contract staff as staff on open-ended
contracts. Fixed-term contract employees have the same right as others to be
considered for internal vacancies. The University’s Staff Redeployment Policy
and Procedure will apply equally.
2.3.3 Fixed-term contract employees may be offered extensions or additional fixedterm contracts so long as this remains justified under the provisions at 2.1.1,
and so long as an extension or additional contract does not extend the
employee’s continuous service beyond four years. An employee has the right
to have their appointment made permanent if the duration of their successive
fixed-term contracts extends their employment beyond four years. The Human
Resources Directorate will automatically issue open-ended contracts to fixedterm staff after four years continuous service.
2.3.4 The Human Resources Directorate will monitor fixed-term contract and will
contact managers around three months prior to the end of a fixed-term
contract to establish whether the appointment is to terminate or not.
2.3.5 Fixed-term contract staff will receive written notification of the impending
expiry of their contract in line with the University’s general policy on notice
periods.
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Breaks in service
2.4.1 Continuous service entitlements will not be affected by short breaks in
service. The University will not recognise short breaks between fixed-term
contracts which are designed to circumvent statutory redundancy or other
entitlements.
3.
Externally funded appointments of a limited duration
3.1.1 It has been customary until recently to appoint academic (both teaching and
research) staff on fixed-term contracts when the position is underwritten by
external funding income (e.g. research grants). This is no longer justifiable
unless one of the exemptions at 2.1.1 apply.
3.1.2 Individuals whose appointments are conditional, at least initially, on external
funding will, unless the justifications at 2.1.1 apply, be issued with open-ended
contracts. When funding is due to expire employees will be eligible for
redeployment or, if this proves impossible, statutory redundancy payments
when the fixed term contract is for two years or more. The University’s Staff
Redeployment Policy and Procedure will apply in such cases.
3.1.3 Contracts for staff whose appointments are initially underwritten by external
income will include clauses to the following effect:
Clause 1
Your appointment is initially funded by the ……………………….. (Name of
funding body) for work on ………………………….. (Title or purpose of
research project) (optional). Funding for your post is currently available
until ………………….. (date funding due to expire).
Clause 2
In the event of funding coming to an end, your post may become
redundant and your appointment terminated. In those circumstances your
Pro Vice-Chancellor/Director, or his/her nominee, will explore with you
redeployment or any other options available at that time. You will receive
written notice of any redundancy taking effect in line with the University’s
general policy on notice periods.
4.
Expectations of Faculty and Directorate Managers
4.1.1 Management expectations of Faculties and Directorates
It is an essential part of good management practice that employees on fixedterm contracts, or whose appointments are largely conditional on external
income, are kept informed of their situation and opportunities for further
employment. Managers are required to have those dialogues three months
prior to the expected expiry of either a contract or funding. Managers are
expected to discuss with individuals’ career development needs and, where
appropriate, bring these to the attention of the Human Resources Directorate.
4.1.2 In some cases it will be appropriate for Faculty and Directorate management
to consider ‘bridging funding’ to facilitate the transfer of employees from one
externally funded project to another.
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