Policy and Procedure
on the use of Fixed-term Contracts
Human Resources Directorate
October 2005
Anyone who for any reason finds this
policy difficult to read or to follow
should contact their area Human
Resources (HR)
University of Hull
Policy and Procedure on the use of Fixed-Term Contracts
Introduction
1
The University of Hull employs many staff on a variety of contracts. Continuing
contracts are used when there is an expected need for the work to be done
indefinitely. Fixed-term contracts are used when there is no continuing need
for the post.
2
Due to the nature of the research funding the university receives for project
based work, it has a fairly high number of staff on fixed-term contracts. These
contracts are sometimes renewed a number of times before they come to an
end. Staff on such contracts are often referred to as Contract Research Staff.
There are however a number of staff who are not involved in research, who
also have fixed-term contracts.
3
The uncertain nature of fixed-term contracts can lead to insecurity about
employment and increased stress. This can be reduced by: improving job
security; offering greater consultation regarding the termination or renewal of
contracts; increasing personal development and support to move to other
fixed-term or continuing posts.
Aims of this procedure
4
This policy aims to ensure that staff on fixed-term contracts are treated in as
fair and equitable a manner as those staff on continuing contracts. It also aims
to prevent the abuse of successive fixed-term contracts by ensuring that only
those posts with objective justification for being fixed term are offered on this
basis, and that otherwise staff are given the increased security of a continuing
contract. The policy aims to ensure that all staff have full access to staff
development and training, and are aware of other opportunities within the
university.
Equality
5
This policy has been produced with the aim of supporting the university’s
overall strategy to embrace diversity and welcome individuals from all
backgrounds. When using this policy, the university expects members of staff
to treat all colleagues fairly and with respect and will take action against acts
which breach the policy on diversity. A member of staff who for any reason
finds this policy difficult to read or follow should contact their area HR Advisor
who will provide help with, or alternative formats of, the procedure.
To whom does this policy apply?
6
This policy applies to all staff employed on fixed-term contracts, including
Contract Research Staff and casual or hourly paid fee staff. It does not cover:
agency workers; students on work placements of one year or less which are
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part of a higher education course; apprenticeship contracts; or staff on publicly
funded training, reintegration or temporary work schemes.
Definitions
7
The following definitions will be applied in respect of this policy.
Fixed-term contract
This is a contract for a specific period of time which is either fixed in advance
or will terminate automatically on completion of a particular task, or upon the
occurrence (or non occurrence) of any other specific event. Such tasks or
events will be detailed in the contract of employment.
Contract research staff
These are members of staff who are employed by the university on fixed-term
contracts to carry out research. Usually the funding for these posts comes
from external sources and is not core university funding. This can lead to
uncertainty over the renewal of the contract.
Recruitment to a fixed-term post
8
It should be made clear in the recruitment literature, and again at interview,
that the post is fixed term and although the possibilities for renewal may be
discussed, care should be taken not to raise unreasonable expectations about
longer-term or continuing employment.
The contract
9
The fixed-term contract which is issued will state the date the contract will
come to an end, if it is not otherwise renewed, and will state the reason for the
contract being fixed term rather than continuing. This may include for
example: the nature of the funding; cover for maternity or sickness absence;
or the fact that the role is to achieve a particular target which, once achieved,
will mean the post is no longer required.
Notice
10
The university will aim to inform staff at the earliest practical opportunity
whether or not their posts are likely to be extended for a further period at the
end of the fixed term, or whether they will come to an end as stated in the
contract.
11
Where a fixed-term post will become redundant at the expiry of its term, and
the person in post has more than one year’s continuous service, individual
consultation and notice of dismissal will be applied in the same way as under
the redundancy and redeployment policy (see Appendix 1)
Extension of fixed-term contracts
12
Where it is not possible to offer a continuing contract, but there is a need for
the fixed-term contract to continue beyond the end date, an extension to the
existing contract, or if more appropriate, a new fixed-term contract will be
issued. Where a contract extension is dependent on external monies, which
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are expected but have not yet been confirmed, the department should provide
bridge funding to cover any gap, if the individual is expected to continue
working. This will ensure that an individual maintains their continuity of
employment.
The ending of fixed-term contracts
13
If a fixed-term contract comes to an end at the date stated in the contract,
without renewal, the university will do all it can to find suitable redeployment
for the member of staff. If a member of staff wishes to be considered for
redeployment they should contact the HR Directorate as soon as possible
before the end of the contract.
Redundancy payments
14
If a fixed-term contract comes to an end on the date stated in the contract, the
reason will normally be redundancy, due to the funding coming to an end, or
the project finishing, for example. Staff on fixed-term contracts will, in this
case, be entitled to receive statutory redundancy pay if they have been
employed by the university on a fixed-term contract, or series of fixed-term
contracts for a period of two years or more.
Misconduct or poor performance
15
Fixed-term contracts will not be used as a method of dealing with issues such
as misconduct or poor performance. Such issues should be dealt with by
using the appropriate disciplinary or capability policy.
Equality of treatment
16
Unless a difference can be justified for objective reasons, staff on fixed-term
contracts have the right to be treated no less favourably than staff on
comparable continuing contracts employed by the university and engaged in
the same or broadly similar work, having regard, where relevant, to whether
they have a similar level of qualification or skill. This means they should
receive similar terms and conditions of appointment with the same benefits
such as pay, pension, sickness and maternity provisions. They should have
the same opportunities to use services to assist better performance such as
induction, staff development and training, appraisal, and careers advice. They
should also receive the same information on, and opportunity to apply for,
more secure positions and promotion opportunities.
Less favourable treatment
17
If any member of staff on a fixed-term contract considers themselves to be
treated less favourably than a comparable continuing member of staff, they
are entitled to ask for a written statement of reasons for this treatment. This
should be done in writing to their Dean, Director or Head of Service, who must
reply within 20 working days.
18
Where a fixed-term member of staff is treated less favourably as regards a
contractual term, this will be justified if the contractual terms, taken as a
whole, are at least as favourable as the comparator’s terms.
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Limitations on the use of fixed-term contracts
19
All fixed-term contracts should be reviewed at least annually by Deans,
Directors or Heads of Service’s to ensure that the need for them to be fixed
term remains. Wherever possible, staff will be transferred to continuing
contracts, where the reason for requiring the post to be fixed term no longer
applies. Any fixed-term contract which is issued after 10 July 2002, and which
runs for four years or more (including any subsequent extensions forming a
series of fixed-term contracts), will be transferred to a continuing contract if it
is renewed, unless there is an objective justification for a further fixed-term
contract to be issued. Any member of staff who remains on a fixed-term
contract after this time will have the right to request a written statement of
reasons for this from their Dean, Director or Head of Service, who must reply
within 20 working days.
Objective justifications
20
Contracts should be issued on a fixed-term basis only if there is objective
justification for doing so. Objective justification can be said to apply
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
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when the post requires specialist expertise or recent experience not
already available within the institution, in the short term
when there is a need to cover staff absences
when there is a need to provide a secondment or career development
opportunity
where input is required from specialist practitioners
where the business demand can be clearly demonstrated as being
particularly uncertain
where there is no reasonably foreseeable prospect of short-term funding
being renewed, nor other external or internal funding being available or
becoming available
Continuing contracts of employment
21
The number of staff on fixed-term contracts will be limited to those that can be
objectively justified. Where this is not the case, continuing contracts will be the
norm. However, if for example funding for such a post ends but the work can
continue, the university will consider all other sources of funding both internal
and external. Where this is not available, redeployment or other measures will
be considered to reduce any need for redundancy.
Contract research staff
22
Contract research staff are a distinctive group of staff within higher education
with a high proportion employed on fixed-term contracts, traditionally because
of the short-term funding of these posts. Wherever possible the university will
move to reduce the number of such staff on fixed-term contracts by using
continuing contracts.
23
Training in research methods and research ethics will be made available to all
research staff, to assist their career development and to help the university to
maintain high quality research in a competitive research market. Training will
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be available in relation to the management of research contracts and the
supervision of contract research staff.
Communication and training
24
The university aims to raise all staff’s awareness of their rights and
responsibilities under this procedure. Training will be provided to managers to
ensure that they gain the knowledge, skills and experience necessary to be
able to operate the university’s policy and relevant legislation effectively, and
to disseminate it to staff.
Data protection
25
The data collected in the course of following this policy will be used for the
purposes of monitoring the fairness and effectiveness of this policy. It will be
stored on the computerised Staff Information Management System and paper
records will be kept on individual staff’s central HR file. Only staff who need
the information in order to carry out the duties of their post will have access to
this data. The information will be kept on computerised and paper record for
the life of those records, details of which can be found in the policy on data
protection for members of university staff.
26
The university will not pass personal information directly to any
representatives who may be assisting a member of staff, unless a written
instruction to do so is received from that member of staff.
Monitoring
27
The effectiveness of this procedure will be ensured by continuous monitoring,
annual review and consultation with staff groups. The results of the monitoring
process will be published.
28
It will be the responsibility of the HR Director to monitor the effectiveness of
this policy. This will include
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29
monitoring the number and percentage of fixed-term contracts in use to
ensure that as many staff as possible have the security of continuing
contracts of employment
monitoring the length of time staff are remaining on fixed-term contracts
rather than transferring to continuing contracts
assessing the objective justifications for staff being on fixed-term contracts
to ensure they remain valid
The operation of the HR policies will be monitored by the HR Director
reporting through the Staffing Committee to the Human Resources
Committee. As part of the process, and prior to the reports being finalised, the
HR Director will discuss key issues with the trade unions and incorporate their
views accordingly.
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30
While this policy is to be followed by all staff of the university, it does not form
part of a member of staff’s contract of employment.
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Appendix 1
Process to terminate Fixed Term Contracts
Under the Employment Rights Act (ERA) 2002, new statutory procedures were
introduced in October 2004 relating to dismissal, disciplinary and grievances. These
new procedures have been incorporated within the University’s policies and this
procedure should be read in conjunction with the policy on the use of fixed term
contracts.
The statutory procedures also cover fixed-term contracts that are not renewed and
where the employment comes to an end. A standard set process should therefore
be followed at the time any fixed term contract is due to end.
Before a meeting is held with the member of staff the future of the fixed term contract
should be confirmed by the appropriate manager (normally their head of
department). The fixed term contract will either be terminated, re-issued or made
permanent. In respect of an initial decision not to renew the fixed term contract the
following process should be followed.
1. The member of staff should be invited to a meeting at which they will be
informed of the decision by their line manager. They may be accompanied to
this meeting by a representative. The meeting should be held as early as
possible but no later than two months before the expiry of the contract.
2. Any issues/ additional information raised by the member of staff at the
meeting should be carefully considered. The final decision should then be
conveyed to the member of staff in writing within 7 working days of the
meeting.
3. The member of staff must also be advised in writing of their right to appeal
against the decision. The appeal will normally be heard by the Dean, Director
or Head of Service and must be held before the termination date of the fixed
term contract. The member of staff may be accompanied to this meeting by a
representative. The decision of the appeal should be conveyed to the member
of staff in writing within 7 working days of the meeting.
Where the fixed term contract has been continuous for 2 years or more statutory
redundancy will normally be payable.
Where fixed term contacts have been re-issued for 4 years or more a continuing
contract will normally be considered. The above policy should be read for more
detailed guidance on this matter before a decision is taken.
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