What are the forthcoming Fixed-Term Employees' Regulations and their implications?
Fixed-Term Employees' Regulations are expected to come into force on 10 July 2002 to comply with an EU Directive. One aim is to prevent the abuse of a series of fixed- term contracts that should be regarded as permanent, and to make employers treat permanent employees and those on 'rolling' fixed-term contracts consistently.
These regulations set out the proposed equal employment rights of employees on fixed- term contracts with employees on permanent contracts. The new regulations cover pay, benefits and pensions.
Fixed-term employees must, under the EU Directive, have the right not to be less favourably treated than comparable perman-ent employees, unless the less favourable treatment is justified on objective grounds.
Objective grounds means less favourable treatment is acceptable where the terms of a fixed-term employee's contract is overall no less favourable than a comparable permanent employee's contract. This could mean additional salary replacing an employee benefit provision.
The EU is also trying to include temporary agency staff in the regulations, but this is being resisted by the UK Government on the basis the contract of employment is with the agency and not the 'employer.'
Clients should also be aware of proposed changes to Part-Time Workers' Regulations to comply with new regulations. Under the proposed amendments, individual part-time workers can compare themselves to a full-time colleague irrespective of whether either party's contract is permanent or fixed-term. This will comply with the Fixed-Term Employees' Regulations when they come into force.
An employment tribunal, which has upheld a complaint from a part-time employee for equal access to an occupational pension scheme, might backdate their service by more than two years.
Nicola Smith
