Flexibility and Fairness
Measures in the Act implemented the EC Directive on fixed-term work and will prevent pay and pension discrimination against fixed term employees.
Right for fixed-term employees not to be treated less favourably than similar permanent staff working for the same employer will ensure flexible work pays.
Employers will need some flexibility to address individual circumstances when applying the equal treatment requirement to fixed-term employees. Different treatment may be justified on objective grounds or where the fixed-term employee has an overall package equal to a similar permanent employee.
Limits on the use of successive fixed-term contracts will ensure that people are not on a string of contracts in what is really a permanent job, while allowing for sectoral variations.
The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 came into force on 1 October 2002. Guidance on the new regulations has been produced after feedback from stakeholder groups.