Continual Contract Employment Versus Permanent Role

[InfoSeeker]

I was offered a one year contract starting September 1st, 2009 through to August 31st, 2010. The terms of the contract were the same as if I was offered a permanent role; ie a fixed wage, worked in the office, set number of vacation days in line with other full time employees, etc. There was no element which would identify me as being self employed in line with revenue guidelines.

They want to extend this for another year which is fine with me but again it will be under a fixed 1yr contract.

However, I was wondering where I would stand in the future re redundancy in terms of how these 2 years would be treated?

I know that you must be with an employer for a minimum of 2yrs to qualify for statutory redundancy so my query is more for the long term as it is very likely that the role I have is secure for a number of years.

Please note that there will be no break in employment between the 2 contracts, the next one will run from Sept 1st 2010 through to August 31st, 2011.

What is the benefit for the employer in doing this as given there is no break then I would assume that these 2 yrs would count as reckonable service?

Please note that they told me that I will be able to join the health insurance scheme and also the pension plan from September 1st.

The query is more to do with my curiousity than anything else, ie what is the logic of the employer re this as under a permanent role, the notice period is one month & under my fixed 1yr contract it is the same.

 

[Lomond]

If an employer wishes to extend your contract for one year then they should also be offering you an objective reason as to why this is being extended and you are not been offered a permanent contract. (Fixed term Legislation).

If you have 2yrs service (104 weeks) irrespective if this was under a permanent or fixed term contract, you will be entitled to redundancy on expiry of the 2yrs service. Sometimes employers continue to use fixed term contract as from their perseptive they might not see the role as continuing for a long term in the future, or they may wish to reorganise the business and the role or they may think they are avoiding permanent employment by using fixed termn contracts...there can be a whole host of reasons.

I recommedn you read the legislation governing fixed term workers - NERA website

 

[InfoSeeker]

Thanks for the response Lomond & have looked at the Nera website so am much more informed.

Still not sure of the logic re this approach as the role is one that would be continual till the day the company is liquidated though I might not be the person who fills it!!!