Back to School & Fixed-Term Contracts

Fixed term contracts of employment are useful for employers where the nature of the work is for a fixed period, where the employer is uncertain about the role in the longer-term and to address staffing needs in situations such as maternity cover, etc.

Fixed term contracts are governed by Protection of Employees (Fixed Term Work) Act 2003 and this provides measures of protection for both parties. Under the 2003 Act;

• The aggregate duration of contracts cannot exceed fours years

• An exemption to this rule can apply if there is an objective reason for doing so

• Fixed term employees cannot be treated less favourably in relation to terms and conditions than a comparable permanent employee

• Again less favourable treatment must be justified on objective grounds

In this issue, we look at a case where a fixed term contract was used to meet a need where a permanent teacher was on career break. The parties to the contract ultimately ended up in a dispute in the High Court .

Fixed Term Contracts - Recent Case

In the case of Russell v Mount Temple School (2009) the issue arose as to whether Mr Russell was entitled to a contract of indefinite duration after working for the school from September 2002 to August 2007.

Mr Russell had been employed by the school from September 2002 to replace a Mr Vaughan (a permanent post holder) who had gone on career break. Mr Russell was employed on a series of fixed term contracts from Sept ’02 and his last contract expired on 31/08/07. In April 2007, Mr Vaughan decided to resign his position and the permanent post became vacant. The school advertised the position publically but Mr Russell was unsuccessful in the competition for the post.

Fixed-Term Contract Dispute - The Outcome

Mr Russell challenged the decision to terminate his contract. The Rights Commissioner ruled in his favour on the basis that his contract should have become one of indefinite duration following Mr Vaughan’s resignation.

Mount Temple School appealed this decision to the Labour Court who over-turned the Rights Commissioners decision on the basis that Mr Russell’s employment came to an end due to the fact that his contract had expired and was not renewed as the vacancy he was filling in for was filled by another teacher.

This Labour Court decision was subsequently appealed to the High Court and the decision of the Labour Court was upheld in favour of the employer.

The High Court ruled that while Mr Russell was employed for the specific purpose of filling in while Mr Vaughan was on career break and while this purpose ceased when Mr Vaughan resigned in April 2007, it did not however eradicate the fixed-term contractual relationship between Mr Russell and Mount Temple School.

Fixed-Term Contract - Implications for Employers

Employers are free to exit the contractual relationship with an employee retained on a fixed term contract for a specific purpose when that specific purpose ceases.

Even though the aggregate duration of fixed-term contracts exceeded four years in this case, the employers obligation ceased on the expiry of the current fixed-term contract when the specific purpose ceased i.e. to fill in for Mr Vaughan.

Nonetheless, great care should be taken in the issuing and reissuing of fixed-term contracts.

HR Support for Employers

CollierBroderick provide HR and Employment Law support, advice, consultancy and training.

For a comprehensive review or update of all your contracts of employment, please call us on 01 8666426 or email us at enquiries@collierbroderick.ie.