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

Laytons,* 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 came into force on 1 October 2002.

Businesses, which employ staff for seasonal work, such as shop work during Christmas, and

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 the benefits of 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 the excluding of fixed term employees from any possible promotion available to permanent employees and of selecting such workers for redundancy in preference to their colleagues. But 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.

"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."