Currently, employees on fixed contracts of two years or more can contract out of their right to statutory redundancy pay. However, the new Regulations will prevent the waiver of this right. The effect will be that any waivers inserted into contracts agreed, renewed or extended after 1 October 2002 will not be valid. However, any waiver clauses signed before 1 October 2002 will continue to apply until such time as the contract is renewed. In addition, the automatic termination of “task contracts” on completion of a task will be classified in law as a dismissal. Accordingly, employees employed under task contracts will have the same rights as other employees (eg the right not be to unfairly dismissed and the right to a written statement of reasons for dismissal, provided the employee has completed one year’s continuous service). Employees under task contracts will also have the right to statutory minimum periods of notice (except where termination occurs on completion of the task).

In addition, fixed term employees will have the right to receive guarantee payments, payments on medical suspension and statutory sick pay on the same basis as permanent employees.