Temporary workers to receive the same pay and benefits as permanent employees

National law firm, Laytons advises businesses of new regulations that ensure fixed-term employees are not treated less favourably than comparable permanent employees

Laytons (www.laytons.com), the national firm of solicitors, are advising employers that employ staff on fixed term contracts to review their procedures in light of new regulations which come into force on 1st October 2002.

Businesses, which employ staff for seasonal work, such as shop work during Christmas, and hotel and leisure work during the summer, as well as those covering for maternity leave, will be affected by the Fixed-Term Employees
(Prevention of Less Favourable Treatment) Regulations. The regulations require businesses to give the same pay and benefits to staff on fixed-term contracts as comparable permanent employees, unless there is a genuine objective justification for the difference.

Examples of less favourable treatment include fixed term employees receiving less holiday pay than comparable permanent employees, not receiving any commission or bonus scheme operated by the business or failing to be
included in any company healthcare provisions. Perhaps more importantly, unfavourable treatment can include excluding fixed term employees from any possible promotion available to permanent employees and selecting such workers for redundancy in preference to their colleagues.

Laytons point out that the new regulations do not require every benefit between the two sets of employees to be exactly the same.

The benefits do not have to be identical so long as the total package of terms and conditions is the same. Comments Tim Randles, Head of Employment, Laytons Solicitors Guildford An employer that fails to offer an employee subsidised lunches or membership to the local gym is not showing that employee any less favourable treatment than a permanent employee if the employer increases their pay to make up for the lack of such benefits

If a fixed term employee believes they are being less favourably treated then they may present their case to an Employment Tribunal. The employer would have to demonstrate to the Tribunal that the difference in treatment
was justified.

The employer must balance the needs and rights of that employee against the business objectives.

Employers must ask themselves whether there is any good reason for treating this employee less favourably. Says Randles It will be justified if the cost to the employer of offering a particular benefit to a fixed term
employee is disproportionate when compared to the benefit the employee would receive. An example would be the use of a company car when the employee''s contract is only for three months, the cost of the car is high and the business''s need for the employee to travel can be met in some other way