Fixed Term Contracts in Schools

As Schools enter the summer term, Leadership Teams begin to consider what staffing needs the school will have in the forthcoming academic year, including considering who needs to be issued or re-issued with a Fixed Term Contract.

Fixed Term Contracts are used frequently within schools for a variety of reasons, such as to cover a long-term absence or maternity leave, to work on a particular project or initiative or to provide support linked to specific funding for a particular child. 

However, there are a number of pitfalls that School Leaders need to be mindful of when using Fixed Term Contracts, which are covered below:

• Ending a Fixed Term Contract is a Dismissal in Law

Many employers do not appreciate that the ending of a fixed term contract is considered a dismissal in law, and so could potentially be contentious if not managed correctly.  To ensure that a fixed term contract is terminated correctly the employer should call the employee to a ‘dismissal meeting’ prior to the end of the contract notice period to notify them of their fixed term contract end date/dismissal and provide them with their contractual notice of termination. 

• Avoid Successive Fixed Term Contracts

Employees who have been given successive fixed term contracts will attract employment protection rights upon the completion of 2 years continuous service with the same employer, including the right to a redundancy payment and not to be unfairly dismissed.  This is particularly important to keep in mind during any restructuring or redundancy process.

• Right to request permanent status

Employees who have been engaged for a period of 4 successive years on fixed term contracts have the right to request that their employment be made permanent and it will be for the school to justify why they feel an employee should not be.

To try to reduce the risk of the above, school should ensure that they have carefully considered why and how they use fixed term contracts.  It is helpful for the school to be clear about the reason/purpose for the use of a fixed term contract and the likely end date or reason why a contract may be brought to an end from the outset, so that employees engaged on such a contract understand the basis of the employment relationship from the point of engagement.

In summary, school should carefully consider their use of fixed term contracts when planning their staffing requirements, taking care to use them appropriately and to end the contract through a fair and legal dismissal process.

For any further advice about the use of Fixed Term Contracts, please contact us at Just People HR on 01768 216775 or by emailing getintouch@justpeoplehr.com