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Worker Wins Appeal Over Fixed-Term vs. Fixed-Purpose Contract

The Labour Court has decided to over-turn and award the appeal of a clerical officer, working at the Department of Employment Affairs and Social Protection, who was wrongly assigned a contract of indefinite duration by the Work Relations Commission (WRC) earlier in the year.

The appeal has highlighted an important distinction between fixed-term and fixed-purpose contracts.

Fixed-Term

According to the SFA, a fixed term contract of employment is when the employee has a contract directly with an employer with the end outcome being one of the following; a specific end date, completion of a task or the occurrence of a specific event.

Fixed-Purpose

A fixed purpose contract is similar in that, the employee has a contract with the employer but is only employed to carry out a specific purpose, and once that specific job is completed, the contract will cease.

In this case, the WRC determined the worker had amassed a length of employment- through continuous fixed-term contracts, to be classed as a contract of indefinite duration as per the Fixed-Term Work Act 2003.

However, the Clerical Officer had been employed to work a fixed-purpose contract- to facilitate the implementation of a scheme, with no end date referred to, compared to a fixed-term contract. It was argued that the Fixed-Term Act – which covers the umbrella term of fixed/specified -purpose contract, does not mention anything to prevent a fixed-purpose contract from lasting more than the 4-year limit of a fixed-term contract. The Court stated that given the contract of employment specified a fixed-purpose, not a fixed-term, the employee did not fall under the 4-year fixed-term contract limit, and therefore, did not require a change of contract to indefinite duration.

This has raised concerns in relation to the interpretation of the fixed-term contract Law, in relation to specified-purpose contracts. This is an important benchmark – please contact Voltedge Management for further information and advice.

(FTD184 Labour Court Case)

For more details email info@voltedge.ie or call +353 1 5252914 and ask for Ingrid.

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