Fixed Term Contract - Is it too risky?

[ProcrastinatingAida]

Hoping someone may be able to help with a work based query.

I recently applied for a new job. Within the same organisation I currently work but a transfer to another department with better prospects. After my interview, I was told that my previous skills would be wasted on the job and was asked to apply for a slightly more senior role. Very flattered but the new job would be on a fixed term contract for 1 year, with the possibility (but no guarantee) of a permanent position at the end of the term.

I've clarified that I would retain all my current benefits and my continuity of service but does anyone know what legally happens at the end of the 12 months if there is no further work for me? Would I simply be expected to leave as the contract ends or would the company need to make me redundant?

Anything else I should be considering if switching from a permanent role to fixed?

Many thanks in advance

You can lose certain benefits/be excluded.
I work fixed term for a council and we were recently not allowed to buy additional leave. I presume because we couldn’t pay it back.
I have never seen anyone leave in all the time I’ve been there which frees up no permanent position.
Good to be thrown on the scrap heap at such lovely time.

Could you ask to do it as secondment instead and they get a fixed term contract to replace your role?

You shouldn’t switch from a permanent role to fixed - you should ask to do the new role as a secondment, with a guarantee of your old job back.

Have you been there more or less than 2 years? This will affect your rights and you’ll get better advice on here if people have this info.

I hadn't thought of that as an option - thank you. I'll put that forward and see what they say.

"Have you been there more or less than 2 years? This will affect your rights and you’ll get better advice on here if people have this info."

My total continuous service is over 15 years. Some of that was built up at my previous employment that was taken over/merged into the current firm. If I'm made redundant at the end of the contract, I'm confident that any redundancy would cover my costs until I find something else. It's just leaving with nothing that worries me.

I wouldn’t leave a perm job for a FTC

i have recently finished my 1st FTC (after redundancy): looking for a job while unemployed and I’m being passed over

I was on a fixed term contract that was terminated 2 months early due to 'market conditions', even though when interviewing I was told fixed term context 'always get extended or go permanent'
it wouldn't put me off going for one again, would be with my eyes open if the fact it can be cancelled at any time due to the nature of the contract. I'd do some asking around with the company as to why the role is fixed term, how long they have funding for etc

Anywhere I've worked this would be treated as a secondment for sure. The last Charity I worked for there were loads of people on secondments at any given time. It was a female dominated workplace so lots of women on maternity at any given time and then a series of backfills and backfills for the backfills. It was like music chairs.

It's fairly standard and gives you the safety net you deserve.

Op you wouldn't be made redundant (with all of the protection/rights/payoff) at the end of the fixed term contract, the contract would just end, and you would need to move on. You would be moving from a permanent contract to one with a fixed end date.

Sounds dangerous to leave a permanent job for a short term contract. Get something in writing from your company about what happens if the contract is not renewed before you accept.

Based on how my employer deals with things, I think the end of the FTC would be a redundancy situation because of your continuous employment taking you over the two year point.

Do you need to apply or have they offered it to you? They might not be aware that they would need to pay you 16 years' worth of redundancy at the end of the contract.

A secondment would be better.

I wouldn’t give up 15 years continual experience, and the entitlements that come with that, for a 12 month FTC, so take advice and get HR to out something in writing before you accept.

I’ve recently finished an FTC, my first, and it was a bit of a mixed experience. It wasn’t extended or made permanent, which (more fool me) I had assumed would have been one of the outcomes.

I’ve worked a few FTC early in my career and I wouldn’t rule out doing a FTC again but not at the minute as I want the stability of a permanent contract.

My first FTC they encouraged me to apply for a permanent role, they liked me and wanted to keep me. I didn’t want to stay permanently but I was happy enough with the FTC and so didn’t apply. It was a really easy reason to give to future jobs because I didn’t have to tell them I’d been encouraged to apply for permanent roles.

My next FTC was initially very short but got extended as I was offered the role. However, it didn’t get extended again at the end of that contract due to cuts across the business. It was hard to leave that job because I wasn’t ready, I hadn’t done the emotional side of feeling unfulfilled or struggling with the politics/environment. I really liked the people I worked with, I liked the work and I took a job I wouldn’t have otherwise applied for just to have a job. It set my career on a different path and at the time I wasn’t happy about that but I can honestly say now that it was for the best.

My next job was also FTC. That was made permanent with about 6 months left on the contract. I didn’t need to apply for the job, I was just made permanent. This is the one I was least convinced would become permanent so there really is no way of predicting how it will go. I left that job about 12 months after being made permanent partly because it wasn’t something I’d have applied for and I’d taken a small pay cut to get that job.

With all those I didn’t have job security anyway so had nothing to lose. As others have said I would want them to offer it as a secondment and retain your job security. The thing I’ve found with FTC is some places will treat as you an employee and some will treat as a contractor and so it’s worth working out how they see this working and how they see this contract fitting in with the bigger picture of the company.

This and what @Leeds157 said

If you have continuity of service, you haven’t had to look for a job for 15 years - it’s a tough market, competition as hybrid increases pool of candidates etc - so don’t easily give away your rights

My last place gave me a bonus for completing the contract: because they know those on a FTC are generally always looking out for a perm job which nearly everyone prefers

It should definitely be handled as a secondment rather than switching to a FTC. So after a year you’d be entitled to return to your current job (or at least a perm role at the same salary). Definitely push for this, don’t switch to a FTC. I’ve done severa, FTC contacts but only as it was the only option, and worth it for career progression. And i was younger with minimal financial responsibility

Where I work you'd retain all benefits but go back to your previous grade at the end of a fixed term Contract. But not necessarily the role you had before. They can put you anywhere the business needs you.
So really it's down to the details of the contract and the business who employ you.
Do you have an HR dept you can go to for advice?

Thank you all for your comments, lots to think about. If I am offered the position, I'll definitely speak to HR before accepting anything.