EU law requires the repeated use of fixed term contracts to be objectively justified. In Great Britain employees who have been continuously employed for four years or more on a series of fixed-term contracts are automatically deemed to be permanent unless the employer can justify the continuing use of fixed-term contracts on objective grounds.
The ECJ has ruled that it may be justified to continue to use a fixed term contract for employees providing temporary cover for others on leave, even where (due to its size) the employer might need to employ temporary replacements on a recurring basis such that the replacements could have been given contracts of indefinite duration. In contrast, the renewal of a fixed-term contract to cover permanent rather than temporary needs cannot be justified. The number of fixed-term contracts that the employee has worked under for the same employer and those contracts' cumulative duration will be a relevant factor in deciding the issue of justification. (Kücük v Land Nordrhein-Westfalen, ECJ).
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Samantha Brown
Managing Partner, Employment, Pensions and Incentives, UK and EMEA, London
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