Limiting liability

Many employers believe that, by placing their employees on fixed-term contracts and renewing them year to year, they are limiting their liability if they choose to terminate an employment.

A route to permanence

The key piece of legislation in this area is section 9(2) of the Protection of Employees (Fixed-Term Work) Act 2003, writes James Seymour, a partner at Berwick Solicitors in Dublin and Galway. This provides that, where “a fixed-term employee is employed by his or her employer on two or more continuous fixed-term contracts and the date of the first such contract is subsequent to the date on which this act is passed, the aggregate duration of such contracts shall not exceed four years.”

In effect, this means that an employee continuously employed on fixed-term contracts for a period in excess of four years can claim a contract of indefinite duration. These types of claims arise regularly in the health sector, as the vast majority of medical professionals are initially engaged using fixed-term contracts.

In the June Gazette, James Seymour emphasises the implications of this for employers, employees and the solicitors advising both parties.

• Read the full article in the June Gazette

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