See also 'Contract of Indefinite Duration' and 'Fixed Term Contract' -
In Ireland, employees on specified-term contracts have broadly similar rights to those on open-ended (permanent) contracts of indefinite duration. The term, specific purpose employee, covers employees whose contract ends on the completion of a certain task or project or the occurrence of a particular event. Accordingly, it is agreed that the contract will finish when a particular stated task is completed, such as replacing an employee while she is on maternity leave or the completion of a construction or research project. The period of such a contract may range from a matter of weeks or months up to a period of a year or more.
Employees working under a specified purpose contract are entitled to equal treatment as compared to a comparable permanent employee. However, specified purpose employees whose normal hours of work are less than 20% of the normal hours of the comparable permanent employees can be excluded from entitlement to join a contributory pension scheme.
If an employee whose employment started after July 14th, 2003 has been employed on two or more continuous specified purpose contracts, the total duration of those contracts may not exceed four years. At that point, if the employer wishes to renew the employee's contract, it must be an open-ended contract unless there are objective grounds justifying the renewal of the contract for a fixed-term or specified purpose only. Where a specified-purpose contract expires and the individual is re-employed within short succession, usually within three months, the individual is generally deemed to have continuous service.
Importantly, specified purpose contracts should never be offered as a tool to assess performance and should only ever be used where there is an objectively justifiable reason as to why a contract of indefinite duration cannot be offered (e.g. the role is only being offered until the completion of a specific project).
Need our help?
If you would like further complimentary advice on specified purpose contracts from an expert, our advisors are ready to take your call any time day or night. Call us on 0818 923 923 or request a callback here.
