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HR Services and Employment Law specialist: For Employers
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Fixed Term Fired

Written by Carolyne Wahlen

Many employers, particularly those with projects, like to offer employees a fixed term contract because they think it will be easier to get rid of them.

Their perception is that the contract will just come to an end and they won’t have to do the awkward bit of “giving notice”.

It doesn’t work like that.

They also think that having a fixed term contract means you can throw out all employment law.

Rookie mistake.

Right now we’re helping a company who’s made these exact mistakes.


They’ve employed a remote worker on a fixed term contract, with the idea of renewing or cancelling it at the end of each August, and letting the employee know two weeks before the end of the month.

If the contract was cancelled, then the agreement was that there’d be a three-month notice period.

So, this year they decided to cancel it.

They gave the 2 weeks’ notice and prepared to pay the three months’ notice.

Trouble was, he’d been working with them for three years, which means they needed to take him through a redundancy process, or a performance management process or reach a settlement.

They told him verbally that he was fired, and confirmed it in writing. Then contacted us.

Yes, that’s unfair dismissal.  And for us, it’s damage limitation.

The employee could easily win a year’s salary at tribunal (capped at £80,541) plus a 25% uplift for not following a process.

In this particular case, that’d be at least £100k, plus the company would have to pay their own legal fees, and potentially his too.

Here’s the lesson: you have to give your staff notice and you have to have the difficult conversation – that’s part of running a business!

P.S. Once your ‘fixed termers’ get close to two years’ service, make sure you give them the correct amount of notice to part company legally, if that is what you want to do!

If you know of a business that could do with our help, please let us know – we always reward referrals with chocolate!

 

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carolyne wahlen

About Carolyne

Carolyne has run a successful business since 2003, is a well-respected speaker, and author of all things HR. There are many, many business owners across the country who have had their very stressful employee issues magically disappear because they’ve teamed up with Carolyne and Gap HR.

Why Gap HR?

We exist to help you stay legal, compliant and profitable, without shelling out for an in-house HR manager. Over 180 clients benefit from the experience and expertise of the Gap HR team.

 

Call us on 01491 598 600

Email me on cw@gaphr.co.uk

 

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Ask a Question

  • If you are an employee and feel that you have been treated badly, then we strongly advise you to contact ACAS:

    Call the ACAS Helpline on 0300 123 1100 for free support and advice.

    Simply get in touch and they'll provide you with clear and confidential guidance about any kind of dispute or query that you have about relationship issues within the workplace.

    You may want to know about employment rights and rules, best practice or you may need advice about a dispute.

    Whatever it is, just give ACAS a call, their team are on hand to respond within the hours: Monday-Friday, 8am-8pm and Saturday, 9am-1pm.

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“We have been using Gap HR for several years now. Carolyne and her team are professional and efficient and we would not hesitate in recommending them for small businesses. It is a great relief to know we are supported by them for our HR advice and paperwork is kept up to date.”

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“I have been working with Carolyne and her team for 6 years now , when I first purchased 2Excel Logistics I found the HR scary as I wanted to do the right thing for my staff , with Gap HR on my side this all seemed easy and we have gone from 9 staff to 28 with no hassle what so ever , thank you to all at Gap HR”

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“Carolyne and team continue to provide great support to our business, with quick and accurate responses to help with our various HR needs.”

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