Fixed-Term Contracts: A Round-Up Of Recent Cases

There have been two notable decisions involving fixed-term employees in recent months, both of which provide much needed guidance on the interpretation of the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (the "Regulations").

In Allen v National Australia Group Europe Ltd (the "Company"), the EAT dealt with the definition of a "fixed-term worker" under the Regulations.

Mr Allen’s contract of employment with the Company provided that: "The employment is for a fixed term from 9 December 2002 to 31 July 2003". However, the contract also contained a notice provision which stated that: "During the first six months of continuous service, either party may terminate the employment by giving one week’s notice to the other". The Company took the view at the end of January 2003 that Mr Allen’s performance was below that which they expected and terminated his employment, paying him in lieu of his oneweek notice period. Mr Allen