The use of fixed-term contracts in schools

10th September 2018

Fixed-term contracts are commonly used in school for a variety of reasons, however it is not always appreciated that the termination of a fixed-term contract is  a dismissal in law and therefore can be potentially contentious.

To reduce the risk of challenge there are a few basic rules that schools can follow. Firstly, to be clear and unambiguous from the outset as to the reason for the fixed-term contract and the date it is likely to end. Reasons for using a fixed-term contract can include cover for a specific purpose, for example to cover for another employee on maternity or sick leave, or to meet a temporary peak in demand.

If the circumstances surrounding the reason for the fixed-term contract change, for example the duration of the period of cover required; or the reason for the contract changes, for example to cover for different employee to the one they were engaged to replace; this should be explained to the employee and confirmed in writing to avoid any confusion.

To ensure that a fixed-term contract is terminated fairly, it is advisable to hold a meeting with the employee (“dismissal meeting”) in good time before the contract is due to end. It is good practice to hold the meeting prior to the contractual noticeperiod of a permanent employee in a similar job role, even if the employee does not have a statutory entitlement to notice. This would usually mean by the notice date for teachers or 1-3 months in advance of the termination date (depending on the post) for members of support staff.

Wherever possible schools should avoid giving a succession of temporary fixed-term contracts to the same person as, over time, they are likely to accrue employment protection rights. For example, employees with more that 2 years continuous service with the same employer have the right not to be unfairly dismissed and may have the right to a redundancy payment. Employees in the Local Government Pension scheme that are made redundant have an automatic entitlement to receive their pension benefits if they are over 55 years of age and this can have a significant financial impact on the school.

In addition, employees that have been engaged in the same employment for a period of 4 consecutives years have a right to request that their employment is made permanent and it will be for the employer to justify why they believe the employee does not qualify.

So, to summarise, think carefully before appointing employees on a fixed-term contract; be clear as to the reasons for the contract and when it will end; ensure that the employee is fully aware of the reasons; what will bring the contract to an end and when.  Ensure this information and any changes are conveyed in writing to the employee in a clear and unambiguous way.

If you are in any doubt about the use of a fixed-term contract or you require any support in the process, please contact you Heads HR Consultant.