fixed term staff victory against Lancaster University – a
reminder of the rights of employees
The University and College Union's (UCU) success in April 2010
against Lancaster University serves as a real reminder of the
protection employees on fixed term contracts receive.
Fixed term contracts are common within the education sector,
used frequently to cover a particular course running for a
specified period. The Higher Education Statistics Agency found that
of the 179,000 staff in higher education in 2008-2009,
approximately a third were on fixed term contracts. Such contracts
may be necessary in certain situations but given the added
protection employees with this status have, the below reflects the
importance of ensuring such contracts are only used where there is
a real and genuine need to do so.
In this case, an Employment Tribunal found that where fixed term
contracts were not renewed, it amounted to a dismissal. As
Lancaster University had not followed a fair consultation process
in bringing those contracts to an end, only sending a monthly list
to the UCU of those contracts due to expire in the following months
but not engaging in any meaningful consultation to avoid or reduce
the dismissals, it ordered Lancaster University to pay 60 days
salary to up to 30 employees whose contracts were not renewed.
This case clarifies and should remind HEIs that whilst an
employment contract can be agreed at the outset to be for a fixed
period and will terminate at the end of that period without any
requirement for notice, the non-renewal of a fixed-term contract at
the expiry of its term can be treated as a dismissal for the
purpose of a claim for unfair dismissal or, if the position is no
longer required, may also entitle the employee to a redundancy
payment. As such there still needs to be a fair reason for
dismissal and a fair procedure. In the event there are 20 or more
employees whose fixed term contracts are coming to an end within 90
days, collective consultation procedures will apply in the event of
a redundancy situation, failure to comply with which could result
in an award of up to 90 days pay for each affected employee.
In addition to this, employers should also remember that
employees engaged on a fixed-term have the right not to be treated
less favourably (eg in terms of their remuneration or benefits)
than comparable permanent employees simply because they are
fixed-term unless it can be objectively justified. Further,
fixed-term employees will also usually be deemed permanent where
they have been continuously employed for four years or more and are
re-engaged again. This can sometimes be so even if there is a break
between contracts.
If you would like any further information regarding this article
please contact Emma Drew at
emma.drew@bllaw.co.uk
or T: 023 8085 7436
