Ending a Fixed Term Contract in Ireland: Everything You Need to Know

Fixed term contracts are a common way of hiring employees in Ireland, offering both employers and employees the security of knowing how long the employment will last. However, what happens when the end of the contract approaches? In this article, we will look at the necessary steps that both employers and employees need to take when ending a fixed term contract in Ireland.

Giving Notice

Employers are required to give notice to employees when their fixed term contract is coming to an end. This notice period is determined by the length of time the employee has worked for the company. If the employee has worked for the company for less than 13 weeks, no notice is required. If the employee has worked for the company for 13 weeks or more, the notice period is the same as the employee’s length of service up to a maximum of four weeks.

For example, an employee who has worked for a company for 18 weeks would be entitled to four weeks’ notice. This notice must be in writing and delivered to the employee at least one week before the notice period starts.

According to the Workplace Relations Commission, the notice should include:

– The date on which the notice is given

– The date on which the contract will end

– The reason for the contract ending

– The notice period (if applicable)

– The right to appeal the decision (if applicable)

If the employer does not give the required notice, the employee may be entitled to a payment of compensation.

Renewing the Contract

If both parties are interested in continuing the employment, the employer can offer the employee a new fixed term contract. However, it is important to note that if the employee has worked for the company for four years or more on a series of fixed term contracts, they may be entitled to a permanent contract.

This is because the Protection of Employees (Fixed-Term Work) Act 2003 states that if an employee has been employed on a fixed term contract for four years or more, the employer must offer them a permanent contract unless there are objective grounds for not doing so.

Redundancy

If the employer cannot offer a new contract and the employee is not entitled to a permanent contract, the contract may end due to redundancy. In this case, redundancy payment may be due.

The Redundancy Payments Act 1967 states that if the employee has been employed for at least two years, they are entitled to a redundancy payment of two weeks’ pay per year of service, plus an additional bonus week of pay in certain circumstances.

Conclusion

In summary, when it comes to ending a fixed term contract in Ireland, the employer must give notice to the employee, and both parties can consider renewing the contract. If a new contract cannot be offered, the contract may end due to redundancy, and the employee may be entitled to a redundancy payment.

It is essential for both employers and employees to be aware of their rights and obligations when it comes to ending a fixed term contract in Ireland. By following the guidelines outlined in this article, both parties can ensure that the process is handled correctly and fairly.