Use of Fixed Term Contracts within. This document is intended to support managers and staff understand the use of fixed term contracts

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1 Name Use f Fixed Term Cntracts Summary This dcument is intended t supprt managers and staff understand the use f fixed term cntracts Target audience All staff Versin number 1 PIN plicy Use f Fixed Term Cntracts within NHSSctland Date f this versin December 2014 Review date December 2017 Date f full impact assessment Natinally Impact Assessed Name f Bard Glden Jubilee Fundatin Reviewing cmmittee/grup SMT and Partnership Frum Dcument Editr Natinally agreed dcument edited by Elaine Barr. Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 1

2 Glden Jubilee Fundatin Values Statement What we d r deliver in ur rles within the Glden Jubilee Fundatin (GJF) is imprtant, but the way we behave is equally imprtant t ur patients, custmers, visitrs and clleagues. We knw this frm feedback we get frm patients and custmers, fr example in thank yu letters and the cmplaints we receive. Recgnising this, the GJF have wrked with a range f staff, patient representatives and managers t discuss and prmte ur shared values which help us all t deliver the highest quality care and service acrss the rganisatin. These values are clsely linked t ur respnsibilities arund Equality. Our values state that we will: Take respnsibility fr ding ur wn jb well Treat everyne we meet in the curse f ur wrk with dignity and respect Demnstrate thrugh ur actins ur cmmitment t quality Cmmunicate effectively, wrking with thers as part f a team Display a can d attitude at every pprtunity. Our plicies are intended t supprt the delivery f these values which supprt emplyee experience. Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 2

3 Use f Fixed-Term Cntracts 1 Plicy Statement All emplyees within the Glden Jubilee Fundatin (GJF) are valued fr the cntributin they make t the service, regardless f their cntractual status. The GJF is cmmitted t using permanent cntracts f emplyment as the nrm, with fixed-term cntracts nly being used where necessary and apprpriate. Furthermre, the GJF is cmmitted t treating thse emplyed n fixed-term cntracts n less favurably than its permanent emplyees (unless this can be bjectively justified). The Staff Gvernance Standard states that NHSSctland staff shuld be treated fairly and cnsistently, and the GJF is expected t review its use f fixed-term cntracts in rder t be able t demnstrate that fixed-term cntracts are nly used within the rganisatin where necessary and apprpriate. This plicy has been develped in partnership with lcal trade unin/prfessinal rganisatin representatives. It reflects the best practice identified in, and meets the minimum standards set ut in, the Fixed-Term Cntracts Partnership Infrmatin Netwrk (PIN) Plicy. The plicy als reflects relevant current emplyment legislatin. 2 Scpe This plicy applies t all individuals wh wrk under a cntract f emplyment, the nature f which is fixed-term (i.e. it is fr a specific term that is fixed in advance; r terminates n the cmpletin f a particular task; r terminates upn the ccurrence r nn-ccurrence f any ther specified event). 3 Purpse The purpse f this plicy is t: Prvide clear principles and values which will gvern the apprpriate use f fixed-term cntracts; Ensure cmpliance with legislatin gverning the emplyment f peple n fixed-term cntracts; Ensure all necessary steps are taken t prevent fixed-term emplyees frm being treated less favurably than cmparable permanent emplyees; Clarify the circumstances in which the use f fixed-term cntracts may be apprpriate; and Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 3

4 Prvide a prcedure fr dealing with fixed-term cntracts which is fair and equitable, and has bth the interests f the emplyee and the effective peratin f the service as its gals. 4 Principles & Values GJF is cmmitted t: Using permanent cntracts f emplyment wherever pssible, and nly using fixed-term cntracts where this is necessary and apprpriate, based n genuine rganisatinal need, by ensuring effective wrkfrce planning and by regularly reviewing and mnitring the use f fixedterm cntracts n a partnership basis; Cmplying with emplyment legislatin which applies in the case f fixed-term emplyees; Ensuring that all fixed-term cntracts have a start and end date, r specific duratin where apprpriate, which reflects the needs f the rle t be cvered, with n mre than tw renewals within any ne-year perid (unless this can be bjectively justified); Ensuring that fixed-term emplyees are nt treated any less favurably than permanent emplyees, and are emplyed n the same cre cntractual terms and cnditins f emplyment as cmparable permanent staff (unless this can be bjectively justified); Ensuring that apprpriate cmmunicatin takes place with emplyees n fixed-term cntracts t discuss issues relating t their emplyment status and address any cncerns; Ensuring that, by implementing the abve, all fixed-term emplyees feel valued as emplyees; have equal access t develpment pprtunities that meet their identified needs; have a clear understanding f the current and planned future status f their pst; and are given the pprtunity t apply fr a permanent cntract if a suitable psitin arises; and Prmting adherence t these same principles and values by partner agencies. 5 Appinting Fixed-Term Emplyees In certain exceptinal circumstances, fixed-term cntracts may be a valuable tl t enable managers t cver shrt-term gaps in essential services, enabling cnsistent standards f service t be maintained. Hwever, such cntracts must nly be used as time-limited, shrt-term ptins, and individuals shuld nt nrmally be in nn-permanent emplyment fr mre than tw years (unless this can be bjectively justified). Gd wrkfrce planning will help t apprpriately identify situatins where fixed-term cntracts are necessary. Circumstances where such cntracts might be used include: Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 4

5 Prtecting psts fr staff due t rganisatinal change (e.g. restructuring r redesign f services); Cvering leave (e.g. sickness absence; maternity leave; study leave; special r ther leave); Prject r research psts; Psts which are nt funded n a recurring basis; r Backfill fr shrt-term secndment. Cnsideratin shuld be given t appinting staff n a permanent basis if a risk assessment shws that permanent emplyment is highly likely t be available at the end f the fixed-term perid (fr example, due t an area f recgnised skills shrtage r t the flexibility f the cre skills required). When cnsidering whether t appint t a pst n a fixed-term basis, managers shuld fllw the needs assessment framewrk utlined in Appendix A. Where a fixed-term pst is required as a result f nn-recurring funding, agreement shuld be reached in advance with the funding bdy that any exit csts assciated with the nn-renewal f the fixed-term cntract will be cvered by the funding bdy r, alternatively, psts will be ffered fr a lesser perid t ensure that funding is sufficient t cver any exit csts. Where appinting t a pst n a fixed-term cntract basis, managers must be able t clearly define the duratin f the pst, where apprpriate, and the reasn fr the fixed-term nature f the pst. The fixed-term nature f the pst shuld be clearly evident in the advertisement, jb infrmatin package, letter ffering emplyment, and subsequent cntract f emplyment. It shuld als be discussed at interview. The fllwing paragraph shuld be inserted as apprpriate int the abve dcumentatin: "This cntract is fr a fixed-term until [date/duratin]. The reasn fr the fixedterm cntract is [reasn]." Where individuals with cntinuus service within the NHS apply fr fixed-term cntract rles, the GJF reserves the right t refuse any such appintment. Where existing permanent emplyees apply fr fixed-term cntract rles, and where the GJF des permit such an appintment, it must be made clear (in writing) t the emplyee that in ding s their existing permanent cntract has cme t an end, and their new cntract is fixed-term. 6 Reviewing Fixed-Term Cntracts All staff n fixed-term cntracts will have their psitin reviewed mid-term and thereafter as apprpriate. The utcme f this review must be discussed directly with the emplyee and cnfirmed in writing. There are three ptins which may arise during such discussins: Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 5

6 There is a requirement t make the pst permanent, in which case the prcess t be fllwed is set ut belw at 6.1; r There is a requirement t extend the length f the cntract. Where there is an bjective justificatin fr extending the cntract, the prcess fr renewal f a fixed-term cntract, as detailed belw at 6.2, shuld be fllwed; r There is n change in the plans and expectatins f the fixed-term nature f the cntract. The cntract will run fr the duratin riginally specified, with the prcess fr nn-renewal f a fixed-term cntract, as detailed belw at 6.3 and 6.4, t be fllwed. 6.1 Requirement t Make the Pst Permanent Where it is determined that a fixed-term rle needs t be carried ut n a permanent basis, the pst requires t be apprved and advertised in the nrmal way and any emplyee currently undertaking such a rle n a fixedterm cntract basis wuld be required t apply. Hwever, given that as a result f the abve, the emplyee's fixed-term cntract wuld nt be renewed upn expiry, they wuld be eligible t apply fr such a permanent pst via redeplyment. Hwever, where the criteria set ut belw with regard t the use f successive fixed-term cntracts are met, there may be circumstances where a fixed-term emplyee wuld require t be autmatically appinted t the rle n a permanent basis withut the need t advertise. 6.2 Requirement t Renew Fixed-Term Cntract In circumstances in which there is a requirement fr emplyment t cntinue beynd the initial fixed-term cntract expiry perid, cnsideratin needs t be given t the fllwing: GJF is cmmitted t appinting nt a permanent cntract fixed-term emplyees wh have cntinuus service f mre than tw years (within successive fixed-term cntracts) where the fllwing criteria are all met in full: The member f staff has held fixed-term cntracts cnsecutively which were used t prtect psts fr permanent staff due t planned rganisatinal change, service recnfiguratin r redeplyment; and The member f staff has been emplyed fr mre than tw years; and Recurring funds fr the pst beynd the tw-year perid exist, which can be used t retain the member f staff, r a psitive risk assessment has been carried ut t establish the impact n the rganisatin shuld it be nn-recurring funding. Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 6

7 (In situatins where an emplyee achieves tw years' service, and it is knwn that the cntract will nt be renewed within three mnths f the date f achieving tw years' service, the individual's cntract f emplyment will remain fixed-term.) Managers must als be mindful f the legislatin which applies with regard t the use f successive fixed-term cntracts. Individuals with a successin f fixed-term cntracts f ver fur years will be entitled t permanent cntractual status under emplyment law, unless this can be bjectively justified. In circumstances in which permanency f emplyment cannt be ffered within a particular rle, but where cntinuatin f the fixed-term cntract cannt be bjectively justified, the emplyee will be deemed t have a permanent cntract with GJF being subject t redeplyment in the same way as any ther displaced permanent emplyee when the fixed-term pst cmes t an end. Fixed-term cntracts shuld nt be renewed n mre than tw ccasins in any ne-year perid, withut first establishing an bjective justificatin. Neither the initial cntract nr renewal perid shuld be fr less than three mnths ther than fr clear, bjective and specified reasns (e.g. awaiting cnfirmatin f a permanent psthlder returning frm maternity leave (in which 28 days' ntice is all that is required frm the emplyee n maternity leave) - in such circumstances it wuld be reasnable and justifiable t ffer ne-mnth renewals). Where a fixed-term cntract necessarily and apprpriately requires t be renewed, the manager shuld secure agreement frm the emplyee fr the fixed-term cntract t be extended. The manager will then arrange fr a variatin t the cntract f emplyment t be issued t the emplyee using existing rganisatinal prcedures such as a change frm. Managers shuld be equally mindful f the need t take care t avid emplyees n fixed-term cntracts wrking past the specified expiry date, where the cntract has nt been renewed, as there is a risk f an implied cntinuatin f the arrangement as an 'pen cntract'. 6.3 Nn-Renewal f a Fixed-Term Cntract Irrespective f the reasn fr the fixed-term cntract, shuld a situatin arise where the emplyee becmes displaced frm the rle prir t its agreed pint f expiry, GJF has a duty t prvide suitable alternative emplyment fr the remainder f the fixed-term, during which NHSSctland rganisatinal change prtectin f earnings will apply. Where it is knwn that an emplyee's fixed-term cntract will nt be renewed upn expiry, the relevant manager with the authrity t dismiss must meet with the emplyee, ideally three mnths prir t the expiry date f the fixedterm cntract (and n later than the cntractual ntice perid), t discuss the fllwing: Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 7

8 T cnfirm that the fixed-term cntract will nt be renewed upn expiry; T cnfirm the grunds fr nn-renewal f the fixed-term cntract (which must be fr a legitimate reasn - capability r cnduct issues, fr example, wuld nt be legitimate grunds fr nn-renewal, with GJF s plicies being applied, as apprpriate, n differently than wuld be the case with permanent emplyees); T serve the emplyee with ntice (in line with their cntract f emplyment) that their cntract will be terminated upn expiry f the fixed-term; T advise the emplyee that they will be placed n the redeplyment register, and t discuss the redeplyment prcess. The emplyee shuld be advised that they will remain n the register until the date f the end f the fixed-term cntract; T cnfirm, where apprpriate, any redundancy payment which will apply shuld suitable alternative emplyment nt be btained; T advise the emplyee f their right f appeal; and T discuss any ther matters in preparatin fr the terminatin date. The emplyee will have the right t be accmpanied at the meeting by a representative f their trade unin/prfessinal rganisatin r a wrk clleague. A representative frm Human Resurces shuld als be present. Cnfirmatin f the abve details shuld subsequently be issued in writing t the emplyee withut unreasnable delay and accrding t lcally agreed timescales. In additin, the Human Resurces department may be able t advise n available supprt fr the individual t help them find alternative emplyment, such as CV preparatin, interview skills etc. In the case f nn-renewal f a fixed-term cntract upn expiry (irrespective f the reasn fr the fixed-term cntract), access will be granted t redeplyment vacancies, in line with the GJF s Redeplyment plicy develped in line with the Redeplyment PIN Plicy, n earlier than three mnths and n later than running cncurrent with the emplyee's ntice perid. Further details n the prcess t be fllwed are cntained within the GJF s Redeplyment plicy. It shuld be nted that while a legal bligatin t explre suitable alternative emplyment nly exists in circumstances where the nn-renewal f a fixedterm cntract meets the definitin f redundancy, this plicy ges beynd the legislatin requiring that access t redeplyment be granted in the case f all instances f such nn-renewal f a fixed-term cntract. Hwever, where mre than ne applicant applies fr a pst via redeplyment and mre than ne is appintable, priritisatin shuld be given depending upn the reasn fr displacement frm the riginal pst (particularly whether r nt a legal bligatin exists t explre suitable alternative emplyment). Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 8

9 Reasnable time ff will be given by the manager fr the emplyee t attend interviews during the abve perid. If the emplyee has nt secured an alternative pst prir t the end f their ntice perid, their emplyment will be terminated as per the earlier meeting. 6.4 Terminatin Which Meets the Definitin f Redundancy In circumstances where the terminatin f a fixed-term cntract meets the definitin f redundancy, the fllwing additinal requirements apply in rder t ensure that the fixed-term cntract is ended safely: Where an emplyee has been unable, as at the terminatin date, t btain suitable alternative emplyment, their cntract will be terminated as detailed abve. Additinally, hwever, where they have mre than 104 weeks' cntinuus service, they will be entitled t a redundancy payment in line with Agenda fr Change Terms and Cnditins. Previus NHS service will cunt as recknable service fr the payment due where there has been a break f less than 12 mnths and redundancy has nt previusly been payable fr any part f that service. Depending n the difference in terms and cnditins, and therefre whether any alternative emplyment pprtunity is deemed 'suitable', NHSSctland rganisatinal change prtectin f earnings will apply. An emplyee may chse t apply fr, and accept, an alternative pst where the difference in terms and cnditins is such that prtectin f earnings will nt apply. In such circumstances, the emplyee shuld be advised that, if they chse t accept such a pst, they will frfeit any entitlement t a redundancy payment which wuld therwise apply shuld their emplyment be terminated n grunds f redundancy and with n suitable alternative emplyment pprtunities having been identified. Emplyees shuld be advised that, shuld they unreasnably fail t apply fr suitable alternative emplyment pprtunities which may arise r t accept any such pst ffered, they may frfeit any entitlement t a redundancy payment. 7 Training T supprt the fair and cnsistent applicatin f this plicy, and adherence t current relevant emplyment legislatin, the GJF will ensure that the use f fixed-term cntracts is included within line management develpment prgrammes and ensure that any manager wh wishes t appint t a fixedterm cntract rle has participated in such a prgramme. 8 Mnitring & Measuring Success Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 9

10 GJF will mnitr and measure the successful implementatin f this plicy, in partnership, n an nging basis. This infrmatin will be used as part f the review f the plicy, as well as being used t demnstrate the apprpriate use f fixed-term cntracts fr natinal mnitring purpses under the Staff Gvernance Standard. At an rganisatinal level, the Partnership Frum will mnitr the develpment f integrated wrkfrce plans and the rganisatinal learning and develpment plan, t ensure that fixed-term cntracts are nly used where necessary and apprpriate. In additin t the abve, the apprpriate use f fixed-term cntracts will be measured thrugh: Quantitative data (numbers f, and reasns fr, fixed-term cntracts); and Qualitative data gathered, fr example, thrugh the use f exit interviews/questinnaires. This type f questinnaire will explre the extent t which individual fixed-term emplyees felt that they: Had equal access t develpment pprtunities; Were kept infrmed abut the current and likely future status f their pst; Had the pprtunity t discuss any issues f cncern; and Had the pprtunity t gain equal access t suitable alternative emplyment within the rganisatin. This infrmatin will be mnitred at tw levels: At an rganisatinal level, thrugh the Partnership Frum; and At an individual service/directrate level, with arrangements being agreed lcally at this level fr reviewing individual fixed-term cntracts, in partnership, n a quarterly basis. 9 Review f Plicy This plicy will be reviewed, in partnership, by the GJF n a three yearly basis, r sner if legislatin changes. Needs Assessment/Review Prcess (Individual r Grup) Appendix A Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 10

11 By cmpleting the needs assessment prcess, managers will be able t make an infrmed decisin as t whether a permanent r fixed-term appintment may be made. Managers shuld als use this needs assessment prcess t review the status f fixed-term cntracts peridically, t see if it might be pssible t make any fixed-term psts permanent. Any success in ensuring the necessary and apprpriate use f fixed-term cntracts depends n rbust wrkfrce planning prcesses. Hwever, the checklist belw may additinally help managers t identify if fixed-term cntracts are necessarily the mst apprpriate means f filling a pst. Lcal wrkfrce planning prcesses will identify areas f recruitment and retentin difficulty. Such prcesses will allw managers t lk at issues beynd their wn service bundaries and take a mre crprate and practive apprach t ensure best practice in staff recruitment and retentin, using fixed-term cntracts as apprpriate. The checklist belw can be used t review individual vacancies. Hwever, at a crprate level an annual risk assessment fr individual staff grups shuld be carried ut by the Partnership Frum. In weighing up these factrs, managers shuld apply knwledge f their service and any recruitment and retentin issues which are unique t their area. The fllwing pints are cre, but managers may wish t include additinal pints t suit lcal circumstances. Needs Assessment Checklist High Medium Lw Turnver fr staff grup Vacancy factr Average time t fill psts Cntributry factrs (e.g. gegraphy, market and cntract duratin) Ability t recruit Prpsed service develpments Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 11

12 Impact n service f failure t recruit Secndment pprtunity Cst f pst/financial impact Cnsideratin f clinical and crprate risk Glden Jubilee Natinal Hspital Charity Number: SCO45146 Page 12

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