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Temporary To Permanent Employment Law

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AssetAdvisor | 20:37 Thu 03rd Oct 2013 | Law
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Quote:
"Any employee on fixed-term contracts for 4 or more years will automatically become a permanent employee, unless the employer can show there is a good business reason not to do so.

However, an employer and unions (or a staff association) may make a collective agreement that removes the automatic right to become a permanent employee in these circumstances."

Source:
https://www.gov.uk/fixed-term-contracts/renewing-or-ending-a-fixedterm-contract
mind reader, buen chico a mind reader

Asset Ad - it possible that your contract specifies a shorter time (mine did)
Question Author
I've been temping at a local authority for nearly 3 years and work with people who have been there longer. We get paid through umbrella companies and Ltd companies.

A few questions:

What is our employment status?

Are we considered permanent or, as I believe, this would only apply to those on FTC's and have been in the same job for 4+ years.

Are we also entitled to paid holiday?

The LA also dictates which employment agency we are supplied through and at one stage changed several supplying agencies for one. This caused issues with those EA's being terminated as they rightly had exit fees for such an event in their contract with the LA.

Interested in general views please - notably from those with employment law knowledge.

Thanks
As I see it . . .

Chapter 9 (Part 2) of the Income Tax (Earnings and Pensions) Act 2003 came into force on 6th April 2007. From that date onwards there appears to have been no doubt that people receiving their pay through 'Managed Service Companies' (= 'umbrella companies') have been deemed to be employees of those companies, since such companies are responsible for paying the relevant PAYE and National Insurance contributions to HMRC:
http://www.hmrc.gov.uk/employment-status/msc.htm
(i.e. you can't be classed as 'self-employed', since you pay both PAYE and 'employed' National Insurance contributions).

Therefore you're entitled to (paid) annual leave:
https://www.gov.uk/holiday-entitlement-rights/entitlement
(All employees are entitled to such leave, even if they're only employed on a casual basis).

As my original post (and the accompanying link) shows, you need to work in a fixed-term contract for 4 years before you automatically become a permanent employee.

For further advice, try calling the Acas helpline:
http://www.acas.org.uk/index.aspx?articleid=2042
(It can take ages to get through but their staff really know their stuff, so it's well worth the wait).
Aside to Chris.....someone needs your help on the trouble with e mail thread !
Question Author
Thanks Buenchico

So is it the case that I could work in the same substantive post for, say, 10 years and STILL not be considered as an "employee" yet still receive basically the same rights (apart from redundancy pay)?

What about notice periods? This is a big area for me.

It seems to me that those failing under AWR have far less clear rights than those on FTC's yet I have outlasted others on FTC's so have been there longer!!

If I haven't taken holiday because I need the money could I claim the equivalent back in cash or time off in lieu?

Your employment status with the LA is 'worker', not 'employee'. Your employer is the agency. This won't ever change unless the legislation changes because your employer is the agency. Answers to your questions are follows:

What is our employment status? - worker , as above. Google it - you have rights, but you won't ever become an employee of the LA unless they want it so. Best bet is to make yourself indispensible and try and swing that that way - you can't use the law to force this.

Are we considered permanent or, as I believe, this would only apply to those on FTC's and have been in the same job for 4+ years.
No, because those with employment contracts with the LA ARE employees and have different sets of rights.

Are we also entitled to paid holiday? You are entitled to the same holidays the LA employees. This is part of the agency worker regulations. The holiday should be booked and taken with your agency employer (who will consult with the LA).

The LA also dictates which employment agency we are supplied through and at one stage changed several supplying agencies for one. This caused issues with those EA's being terminated as they rightly had exit fees for such an event in their contract with the LA.
Doesn't change the price of fish, I'm afraid. So what?

Interested in general views please - notably from those with employment law knowledge.
Yes, that's me - former resident expert in these areas - don't bother so much those days. The site has become less-relevant.

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