Commentary

(7) Limitation on the use of successive fixed-term contracts

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| Commentary

(7) Limitation on the use of successive fixed-term contracts

| Commentary

(7)     Limitation on the use of successive fixed-term contracts

The FTE Regs SI 2002/2034 contain a statutory fall back scheme which limits the use of successive fixed-term contracts (reg 8). Regulation 8 provides that where a fixed term employee has been continuously employed (either under single fixed-term contract or a series of such contracts) for four years or more and is then re-engaged on a fixed-term contract without continuity of employment between the old and the new contract(s) being broken, the new contract will have effect as a permanent contract unless the employer can show that it had objective grounds for continuing to engage the employee under a fixed-term contract. This raises two principal legal issues—when can an employer show justification and when are contracts 'successive'?

With regard to justification, the guidance by BIS (previously the DTI and BERR and now BEIS) suggests the adoption of the EC law test for justification suggested generally (see para [170] above). In Adeneler v Ellinikos Organismos

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