Fixed Term Employee Awarded €15,000 and Permanent Contract

The Respondent engaged the Complainant on a fixed-term contract in 2016 to work on a research project. The termination of the contract was tied to specific events which never materialised and the Complainant remained employed on the same fixed-term contract for almost ten years.

In 2023, the Complainant successfully applied for a role involving higher-level duties and responsibilities. She claimed that this appointment constituted a second contract of employment triggering an entitlement to a contract of indefinite duration pursuant to the Protection of Employees (Fixed-Term Work) Act 2003.

The Respondent maintained that the Complainant had been employed under a single specific purpose contract and that no renewal had occurred. On this basis, it argued that no entitlement to a contract of indefinite duration arose.

On a reading of the employment contract, the Adjudicator found that neither duration nor purpose were adequately defined; the first not at all, and the second extremely vaguely as to ‘carry out specific research activities with the named research project.’

The Adjudicator concluded that the contractual terms had been constructed in a manner that sought to exclude or limit the application of the Protection of Employees (Fixed-Term Work) Act 2003, thereby undermining the Complainant’s statutory entitlement to a contract of indefinite duration.

The Adjudicator directed the Respondent to put the Complainant on a contract of indefinite duration and awarded her €15,000 in compensation.

This decision highlights the significant compliance risks associated with the use of fixed-term contracts, particularly in circumstances where the objective justification for such arrangements may no longer be valid or applicable over time.

To learn more about partnering with Adare Trusted People Partners’ Leading HR & Employment Law Experts, please contact Neil McCormack nmccormack@adarehrm.ie today.