Fixed term contract ?

[TVspinner]

I'm considering taking on a new role. My current one ( I am returning from Mat leave ), isn't very exciting. In the time I've been gone, a number of changes have taken place. My territory has become much smaller and I have been given one which has hardly any customers..

I jusy don't feel like it's going to be a very fruitful situation for me. But the company benefits are really good. The company is very big and looks after its employees quite well.

I've been offered a new position in a much smaller company. Usually in my industry, all contracts are permanent, with a one month termination clause.

The company I'm going for is wanting me to sign a 12 month contract, where my employment will end on a specific date- without notice. They can decide to keep me on, if they want to, but it has nothing about any kind of notice period by which they would let me know by. There's no sick pay ( apart from statutory ) and also no health insurance. I have this in my current place.

I've never worked on a fixed contract before and find this really odd. The entire way their contract is worded also just sounds really hostile towards the employee. I'm just not used to it, as all other contracts I've had, are quite balanced in language.

The new place is higher pay, but I think it's the kind of place where you cannot 'hide' at all. My work will be under the microscope and very high expectations. Where I am at currently, it's a bit more relaxed in general because it's so massive.

I'm not really sure what to do ! But does anyone else think the fixed term contract with no notice is a bit unusual / hostile ?

No, that is the very nature of a fixed term contract. You know exactly when it will end and you can start having conversations about extending or you look for a new job. It’s not hostile or harsh at all.

Not getting extra benefits on a fixed term contract is something that very much depends on the work place.

The way I see it, this fixed term contract only benefits the employer though in my case. It means that even when they decide to renew it ( which is entirely at their discretion ) then I will never get two years of service at the company in case there's a dispute, I can never sue for unfair dismissal, right ?

But that’s the nature of it, you’re on a fixed term contract, you’re not a permanent employee. The two aren’t the same and I think that’s what you seem to have in your mind.

Do you know why they're hiring you on an FTC? When I recruit them candidates usually ask so they get a sense of how likely a permanent job might be (eg maternity cover, or additional capacity for a specific project). Also I believe that rolling FTCs count as continuous service.

Oh wait I think I misunderstood. If it gets extended for another year, and there isn’t a break between the contracts, then you get your two years of service. But they can still choose to let you go in whatever way the contract allows and you won’t be entitled to any redundancy payments, etc.

It's just the way it works in that country apparently. It's the norm.

Have they stated the reasons for the FTC? If you are covering another role or on a project and your work will end when the project is finished then you definitely won’t have a job at the end of it. But if none of these situations are in place then your contract cannot just be ended and you leave without due process. This could be a good thing in that you have the possibility of your role continuing but it could also mean that the company has a ‘try before you buy’ or ‘fixed term workers are dispensable’ attitude. This could be cause for concern - the practice is legally unsound but many companies get away with it because most fixed term workers don’t know their rights.
maybe call HR and see how they answer the question ‘what happens after the 12 months are up’.

There's no project or anything like that. It's just try before you buy. I very much intend to stay long term. I'm getting a share package and helping them build the company.

You should view it as a one year contract until you are told otherwise, your intention to stay for the long term is not really compatible with a FTC. Of course it might turn out to be a long term job, but I think you should manage your expectations.

I don’t understand your points about notice. You have a years notice of when the contract is going to end (although it can be ended sooner by either you or them). It also is not normal to include a clause about when they might tell you whether they intend to extend or not. Nothing you have said sounds odd.

@Mortimercat I just don't like it and I'm not familiar with it. Hence my questions around knowing whether they intend to renew it. I am not sure it works for me this way. Because the entire premise of my interview process was to be part of the company long term and build it up. So the fact that they want this type of contract, does not add up with all of that.

I would suggest you turn it down then.

it’s just they only need you for 12 months
often there extended or offered permanent if the business needs change

if you’ve only got work for someone for 12 months why would they offer u a permanent contract

@rwalker that's not what was discussed in the interview process. It's a position which carries quite a bit of equity and the entire idea is that I come on board and help build a team, over the next few years.

If it's a new company/start up they're just hedging their bets that it might not succeed or they need to cut back in the future. Whole thing sounds risky if you need job security.

In practical terms it doesn’t make much difference because under 2 years they can get rid of you for pretty much any reason anyway and you have no comeback (bar discrimination/whistleblowing).

have you tried negotiating on some of the points e.g. perm contract, more sick pay etc?

I've worked for startups previously and they didn't do it like this. It was just the usual 1 month notice and permanent position.

I guess this is a good point too

DH is self-employed contractor now, but previously worked for same companies with permanent contracts. I have always worked on FTC, from external funders ( contracted by external group with employer).

I think I have WAY more security than DH now or his colleagues on permanent contracts! omg, they can be sacked with little notice at any time up to the 2 years. Their positions are subject to continuing income. He has lost so many colleagues over the years as the 1 year or 2 year point approaches. Typically they leave 3 days later, taking their extra holiday & I don't know what else in lieu of remaining notice period. One time his company wanted rid of an underperforming employee who had > 2 yrs service. Company went thru sham procedure of putting everyone's job on the line (officially) to go thru a full review process, just to get rid of the one poor performer.

My deal is my funds are committed up front FOR ME. My employer is now in financial crisis with waves of redundancies affecting the "permanent" staff; I am totally unaffected. The procedure to get rid of me is so arduous, nothing will realistically happen before contract end, if they did decide to get me out. At contract end, my employer has several procedures to follow to try to get me another position with them, and after 2 years unbroken I am entitled to redundancy money. I hold the cards, not them.

We do get sick & holiday pay, though. OP's description is a bit more like self-employed contracts to not have those.

I have holiday pay.

Is it in the Netherlands by any chance?

Similar to this, how come ?

It's very common to use fixed term contracts there. Part of the reason is that sick pay is payable for 2 years.

If you don't like the terms of the contract, turn down the job and wait for something better.
FWIW I wouldn’t leave a permanent contract for a fixed term one.