As the job market becomes increasingly competitive, the risk of redundancies looms large over many employees, particularly those on fixed-term contracts. While there is no one-size-fits-all answer to this question, it is important to understand the legal implications of being made redundant while on a fixed-term contract.
The first thing to note is that being on a fixed-term contract does not necessarily provide a shield against redundancy. While employees on permanent contracts may have greater job security, fixed-term contracts can be terminated early if the employer has a legitimate reason for doing so.
In general, fixed-term contracts are used when an employer has a specific need for a temporary worker, such as to cover a period of leave or to complete a specific project. In some cases, the contract may specify that the employee will be made redundant at the end of the contract period, provided the employer has complied with their contractual obligations.
However, if the employer decides to make a fixed-term employee redundant before the end of their contract, they must follow the same legal process as for permanent employees. This means that the employer must have a genuine business reason for the redundancy and must follow a fair and transparent process, including consultation with the affected employees.
In addition, the employer must not discriminate against fixed-term employees in the redundancy process. This means that they cannot give preference to permanent employees, and must ensure that fixed-term employees are treated equally.
If a fixed-term employee is made redundant, they may be entitled to redundancy pay if they have been employed for at least two years. The amount of redundancy pay will depend on their length of service and pay.
In summary, being on a fixed-term contract does not provide complete protection against redundancy. However, employers must follow a fair and transparent process and ensure that fixed-term employees are not discriminated against. Fixed-term employees may be entitled to redundancy pay if they have been employed for at least two years. If you are a fixed-term employee facing redundancy, it is important to seek legal advice to ensure that your rights are protected.