How will unfair dismissal rights apply to workers on fixed-term contracts, agency contracts, or temporary work?

The new six-month qualifying period for ordinary unfair dismissal will apply to employees, including those working on fixed-term contracts. 

Employees on fixed-term contracts will generally have the same unfair dismissal rights as permanent employees. This means the expiry or non-renewal of a fixed-term contract may amount to a dismissal, and employers may need to show a fair reason and follow a fair process. 

Agency workers and other temporary workers are in a more complex position because unfair dismissal rights depend on employment status. Many agency workers are legally classed as workers rather than employees and therefore do not currently qualify for unfair dismissal protection. However, some agency workers may be employees of an agency or, in some circumstances, of the organisation where they work. 

The Act does not remove the distinction between employees and workers. Whether someone qualifies for unfair dismissal protection will continue to depend on their legal employment status and the nature of their working relationship. 

What this means for union reps 

• Employees on fixed-term contracts will generally benefit from the six-month qualifying period in the same way as permanent employees. 
• Employment status will remain important, particularly for agency and temporary workers, as unfair dismissal rights continue to apply only to employees. 
• Reps may need to help members understand their employment status and challenge situations where workers may have been incorrectly classified or denied rights to which they are entitled.