Employer may not keep renewing temporary contracts

What changes?

Do you offer your staff temporary contracts? In future, you are not allowed to keep on renewing a temporary employment contract (a fixed-term contract).

If the temporary contract has been renewed three times, you may not offer the employee a new temporary contract for 5 years.

At present, that waiting period is 6 months. During this period, employees are often asked to quit or find other work for 6 months and then return. This is known as a revolving door arrangement.

The government wants to ensure that temporary contracts are only used for temporary work. And for employees to be offered a permanent contract sooner.

For whom?

• employers who employ staff on temporary contracts

When?

The change in law will enter into force on 1 January 2028.