Why companies are in a fix over fixed‐term contracts

A CONTRACT of employment sets out the formal relationship between company and employee and defines what each can rightfully expect from the other. The Contracts of Employment Act 1972 sets out the basic information which must be given on pay, hours of work, notice entitlements, grievance procedure and rights to trade union membership. Where terms and conditions of employment are more complex, however, additional contract provisions are often necessary. The majority of UK companies tend to give senior staff service contracts beyond the statutory requirements.