FAQ: Can I raise a Personal Grievance (PG) if I am employed on a Fixed Term Contract?

A fixed term employee generally has the same basic employment rights as a permanent employee. Your employer must still act in good faith, follow your employment agreement, have a proper reason for any dismissal, and use a fair process where one is required.

However, fixed term employment can make things more complicated. Your rights may depend on why the agreement was fixed term, what the written agreement says, and whether your employment ended on the agreed date or was ended early.

A fixed term employment agreement is intended to end on a set date, when a particular project or piece of work is completed, or when a particular event happens, such as the permanent employee you are covering returning from parental leave.

Under section 66 of the Employment Relations Act 2000, an employer must have genuine reasons, based on reasonable grounds, for using a fixed term. The employer must also tell you how or when your employment will end and the reason for it. These details should be recorded in your written employment agreement.

A fixed term should not be used simply to test whether you are suitable for the job, avoid giving you permanent employment, or make it easier to get rid of you. The employer’s reason must be real and objectively reasonable.

Can a fixed term employee raise a personal grievance?

You may be able to raise a personal grievance (PG) if your employer’s actions amount to:

• unjustified dismissal;

• unjustified disadvantage;

• discrimination;

• sexual or racial harassment;

• pressure connected with union membership; or

• retaliation for certain protected actions, depending on the circumstances.

  
  

The fact that your agreement has an end date does not give your employer permission to treat you unfairly before that date. It also does not protect an employer if the fixed term itself is invalid.  

When might a fixed-term employee need to raise a PG?

There are a number of instances where a fixed term employee may be able to raise a PG.

Your fixed term may not be genuine

You may have grounds to challenge the agreement if there was no genuine, reasonable reason for making your employment fixed term.  Warning signs can include:

• you are doing an ongoing job that still needs to be done after you leave,

• the employer says the fixed term is to “see how you go”,

• you have been placed on one short fixed term agreement after another without a clear reason,

• the fixed term is being used to avoid managing performance concerns fairly, or

• the employer cannot clearly explain why the role must end on that date.

  
  

An ongoing role does not automatically make every fixed term invalid. For example, there may be a genuine temporary funding limit or a specific period of cover. The full facts matter.  If the fixed-term clause does not meet the legal requirements, the end date may not bring your employment to a lawful end. Treating your job as finished could then amount to an unjustified dismissal.

Your employer ends your employment early

Your employer cannot usually end your job early just because the agreement is fixed term.  If you are accused of misconduct or poor performance, your employer still needs a good reason and must normally follow a fair process. That may include giving you the relevant information, explaining the concerns, allowing reasonable time to respond, considering your response with an open mind, and giving you the opportunity to have a representative or support person.

If your job is ended early without a proper reason or fair process, you may have an unjustified dismissal PG.

Your contract is not renewed for an unlawful reason

A genuine fixed term agreement will normally end when the stated date or event arrives. An employer is not always required to offer another agreement.  However, non-renewal can still be challenged in some situations. For example, there may be a problem if the employer refuses to renew your agreement because you:

• made a complaint about bullying or safety,

• asked for wages, holidays, breaks, or another legal entitlement,

• raised concerns about unlawful conduct,

• joined or took part in a union, or

• have a protected characteristic, such as your sex, race, age, disability, family status, religious belief, or sexual orientation.

  
  

The label “non-renewal” will not necessarily protect an employer if the real reason was unlawful or the agreement was not genuinely fixed term.

You are unfairly disadvantaged while still employed

You do not need to lose your job before raising a PG. An unjustified disadvantage may happen if your employer unfairly cuts your agreed hours, removes duties as punishment, suspends you, issues an unjustified warning, or runs an unfair disciplinary or performance process.

You experience bullying, harassment, or discrimination

Fixed term employees have the right to a safe workplace. Depending on what happened, and how your employer responded, bullying or harassment may support a PG for unjustified disadvantage, discrimination, or sexual or racial harassment.

A restructure affects your role

A valid fixed term can usually end as agreed without a redundancy process. If a restructure ends it early, however, the employer should have genuine business reasons, consult with you, consider your feedback and alternatives, and give any required notice.

What if my employer says my contract simply expired?

Check what the agreement says and what happened in practice. Was there a genuine reason for the fixed term? Was the end point clearly recorded? Did the stated event happen, or was the date brought forward? Is the same work continuing? Could the decision be linked to a complaint, protected characteristic, or request for a legal entitlement? The answers may show that the agreement ended lawfully, or that the decision should be challenged.

You are still entitled to raise a PG while employed on a fixed term contract. A valid fixed term may end on its agreed date or event, but your employer must still respect your employment rights. You may have a claim if the fixed term was not genuine, you were dismissed early without justification, you were unfairly disadvantaged, or the decision not to renew was based on an unlawful reason.

Every case depends on its facts. If you are unsure about your fixed term contract, and whether you have been treated fairly, get in touch today for a free consultation.  

MathewsWalker.co.nz | Employment Problems Solved | 0800 612 355

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