Every employee–employer working relationship is regulated by law, and in order to abide by such regulations, the worker needs to sign a contract specifying the conditions of work ensuring both the employer and also the employee are aware and commit to such conditions.
There are two types of contracts of work; a fixed term contract and an indefinite contract. The fixed term contract is regulated by the subsidiary legislation; ‘Contracts of Service for a Fixed Term Regulations’ which defines such contract as;
a contract of service entered into between an employer and an employee where the end of the contract is determined by reaching a specific date, or by completing a specific task, or through the occurrence of a specific event.
On the other hand, an indefinite contract doesn’t have a specific end date and therefore offers more stability to the employee. Article 33 of the Employment and Industrial Relations Act, ensures that the conditions of work should not be less favourable in fixed term contracts than those of indefinite, in fact they are entitled to the same opportunities at the place of work.
Nonetheless, there is also the possibility of a fixed term contract becoming an indefinite contract. This would occur if the fixed term contract expires and the employee is retained but is not given another contract to sign within 12 days or if a fixed term contract is renewed up to a maximum of 4years after which would be considered to be an indefinite contract. The only exception to the latter occurs when the employer has justifiable reason for retaining the employee on a fixed term contract. The Council of the European Union established a framework agreement (1999/70/EC of 28 June 1999) which lays down minimum measures designed to prevent the status of employees from being insecure. One may refer to the case ‘Martina Sciotto v Fondazione Teatro dell’Opera di Roma’ (Judgement in Case (C-331/17) taken before the Court of Justice of the European Union whereby Ms Sciotto was employed from 2007 to 2011 as a ballet dancer by the Fondazione Teatro dell’Opera di Roma under multiple fixed-term contracts. The court affirmed that the Framework Agreement is applicable to all workers, irrespective of whether their employer is in the public or private sector.
The main difference between the two contracts is the process to terminate such contracts. With regards to fixed term contracts, the first 6 months are probationary unless agreed otherwise and therefore the contract could be terminated at will by either party without any specific reason. According to article 36 of the Employment and Industrial Relations Act; an employer who dismisses an employee before the expiration of the time definitely specified by a contract of service, shall pay to the employee one-half of the full wages that would have accrued to the employee in respect of the remainder of the time specifically agreed upon. The same would be said in case an employee who abandons the service of his employer before the time definitely specified by the contract of service shall pay to his employer a sum equal to one-half of the full wages to which he would have become entitled if he had continued in the service for the remainder of the time so specifically agreed up on. Whilst in case of indefinite employment it can be terminated by giving notice, which notice has to be calculated on the amount of time the employee spent working with the employer. The employee doesn’t need any specific reason to quit, however the employer can only fire his employees on grounds of redundancy. In case of redundancy, he is entitled to re-employment if the post is re-available within a year.
This shall not be construed to be as advice but shall merely serve as a brief description of the difference between employment contracts. If you would like to discuss this further please do not hesitate to contact us on [email protected] .