In Ireland, the misuse of fixed-term contracts occurs when employers exploit these agreements to evade their legal obligations or take advantage of employees. Common abuses include repeatedly renewing fixed-term contracts without valid reasons, denying employees the benefits and protections typically afforded to permanent staff, or employing fixed-term contracts for roles that should be permanent. Such practices can lead to legal disputes, as they may breach laws concerning employment contracts, discrimination, unfair dismissal, and other labour regulations.
Employers must adhere to legal requirements when using fixed-term contracts to ensure that employees are not unfairly disadvantaged.
Case Review: Fixed-Term Contract Misuse
In a case involving a security officer, the complainant alleged unfair treatment and violations of employment laws after working under seven successive fixed-term contracts without specified end dates or purposes. The complainant contended that, according to the Protection of Employees (Fixed Term Work) Act 2003, they should have been granted a Contract of Indefinite Duration (CID) after accumulating 60 months of service but were denied this entitlement.
The employer, on the other hand, denied any wrongful dismissal, explaining that the complainant was not scheduled for future work due to an incident with another employee. The employer also claimed that the complainant had received payment in lieu of notice and was provided with their annual leave entitlements. Additionally, the employer argued that the complainant’s pay rate included a Sunday premium, as stipulated in their contract.
The adjudicator ruled in favour of the complainant on multiple issues. It was determined that the complainant was entitled to a Contract of Indefinite Duration, and the failure to provide this contract constituted penalisation under the Protection of Employees (Fixed Term Work) Act 2003. The employer was directed to pay compensation for this penalisation. Furthermore, the adjudicator awarded payment in lieu of notice but dismissed the claims regarding unpaid annual leave and Sunday premiums.
