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Why cant a company keep extending an employees contract

  • 30-10-2013 10:16pm
    #1
    shadowcomplex
    Closed Accounts Posts: 4,097 ✭✭✭


    Can someone in the know please explain to me the whole situation surrounding contract jobs? If a company hires someone on an initial 11 month contract , they can extend it for another 11 months but after that its either hire them permanently or leave them go? why is this?


Comments

  • #2
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,690 Mod ✭✭✭✭Stheno


    shadowcomplex wrote: »
    Can someone in the know please explain to me the whole situation surrounding contract jobs? If a company hires someone on an initial 11 month contract , they can extend it for another 11 months but after that its either hire them permanently or leave them go? why is this?
    They can extend it for a period of up to four years continuous employment, then they have to offer a contract of indefinite duration


  • #3
    bbam
    Closed Accounts Posts: 7,410 ✭✭✭bbam


    The idea is to stop companies using contract to avoid their liabilities as actual employers.
    I can't say I've heard of cases where employers were brought up for abusing contracts.


  • #4
    Ray Palmer
    Registered Users, Registered Users 2 Posts: 8,513 ✭✭✭Ray Palmer


    Stheno wrote: »
    They can extend it for a period of up to four years continuous employment, then they have to offer a contract of indefinite duration
    Are you sure of 4 years I thought it was 2?

    Either way the law is there to protect employees. As contract staff don't have the same rights employers could keep staff on contract and never give them the rights of full employees. In order to stop the erosion of rights through the back door a restriction on how long you can keep an employee on contract.

    Some places also have union agreements which could be why I think it is 2 years.

    I have seen people be not renewed due to this and then asked later to come back as the break in contract circumvents the law. At the same time after 2 years I have seen many people hired as permanent staff and that is how the companies hires all it staff.


  • #5
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,690 Mod ✭✭✭✭Stheno


    Ray Palmer wrote: »
    Are you sure of 4 years I thought it was 2?

    Either way the law is there to protect employees. As contract staff don't have the same rights employers could keep staff on contract and never give them the rights of full employees. In order to stop the erosion of rights through the back door a restriction on how long you can keep an employee on contract.

    Some places also have union agreements which could be why I think it is 2 years.

    I have seen people be not renewed due to this and then asked later to come back as the break in contract circumvents the law. At the same time after 2 years I have seen many people hired as permanent staff and that is how the companies hires all it staff.

    Yeah it's four according to Citizens information


  • #6
    Ray Palmer
    Registered Users, Registered Users 2 Posts: 8,513 ✭✭✭Ray Palmer


    Stheno wrote: »
    Yeah it's four according to Citizens information


    Fair enough I wasn't sure but union involvement in some big companies have it as 2 years.


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  • #7
    shadowcomplex
    Closed Accounts Posts: 4,097 ✭✭✭shadowcomplex


    Its a stupid law thats being abused by alot of companies, contractors are being left go after 2 years and then just replacing them with new contractors.


  • #8
    Ray Palmer
    Registered Users, Registered Users 2 Posts: 8,513 ✭✭✭Ray Palmer


    shadowcomplex wrote: »
    Its a stupid law thats being abused by alot of companies, contractors are being left go after 2 years and then just replacing them with new contractors.

    Far from it. If it didn't exist many people wouldn't have permeant jobs and everybody would be on fixed term contractors. I wouldn't call them contractors as that tends to mean daily rate contractors who are paid well and happy to do it. They can also work beyond 4 years no problem


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