Scottish Government

pin policy and practice

FIXED-TERM CONTRACTS

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CONTENTS

Ministerial Foreword

1. INTRODUCTION

2. MAIN REPORT
2.1 Scope
2.2 Principles and Values
2.3 Definitions
2.4 Legal and Strategic Framework
2.5 Recommendations
2.6 Training
2.7 Monitoring
2.8 Success Criteria
2.9 Conclusion

3. APPENDICES
3.1 Model Policy and Procedure on the use of Fixed-term Contracts
Annex A: Risk Assessment/Review Process
Annex B: Model Renewal Form
Annex C: Model Renewal of Fixed-term Contract Letter
Annex D: Model Confirmation of Expiry Letter

Ministerial Foreword

This PIN publication sets important standards designed to retain the skills and experience of all staff in NHSScotland. The NHS Reform (Scotland) Act 2004 enshrined staff governance in legislation, thus giving the fair and effective management of staff equal prominence with the management of clinical and financial standards. It was made clear in 2003 that implementation of PIN publications is a ministerial expectation. The embedding of staff governance in legislation ¹ and the inclusion of PIN policy and practice in Agenda for Change terms and conditions for NHS staff now reinforce the fact that implementation of PIN policy and practice is not optional. All organisations within NHSScotland must meet or exceed the best practice outlined in this document. The model policies should be adapted to suit local needs and reflect local structures and resources, however, any variation from the model should result in the provisions being exceeded for staff. NHS employers must recognise that all PIN publications _ new and old - carry the same status.

The Staff Governance Standard gives a clear commitment that staff throughout NHSScotland will be treated fairly and consistently. Explicit in the achievement of this Standard is the implementation of this PIN publication on Fixed-term Contracts. I expect NHSScotland employers to work in partnership to retain the skills and experience of all staff through implementing the provisions of this document. Implementation of these policies and practices helps NHS employers across Scotland to offer a consistently high quality working environment, which in turn enhances organisational ability to recruit and retain staff, and deliver the best quality of services possible.

Performance against the Staff Governance Standard and the implementation of this and other PIN publications will be assessed in partnership using the Self Assessment Audit Tool and will form an integral part of the Performance Accountability Framework against which NHS Boards/Special Health Boards and their constituent parts will be reviewed.

Andy Kerr, MSP
Minister for Health and Community Care

DEVELOPMENT GROUP

1. INTRODUCTION

NHSScotland is a major employer in the public sector and therefore seeks to be exemplary in terms of employment practice, while balancing service pressures against finite resources.

The Staff Governance Standard states that NHSScotland staff should be treated fairly and consistently. Additionally, as individuals they should feel valued and have the highest levels of employment security, and an assurance that fixed-term contracts are not used inappropriately. Workforce data that form the evidence base for this document indicate a reduction of fixed-term contract usage, but there is further scope for improvement.

NHSScotland recognises that there are two key factors to reducing the use of fixed-term contacts. Firstly, healthcare organisations must have robust workforce plans and projections in place. Secondly, the service must establish strict criteria which includes risk assessment for the use of fixed-term contacts.

Local agreement on the usage of fixed-term contacts is essential. This guideline sets out:

• clear principles and values on the use of fixed-term contacts;
• the legal and policy framework in which employment status is considered; and
• how robust workforce planning can aid discussion on the use of fixed-term contracts.

The document also includes a model policy on the use of fixed-term contracts for NHSScotland, which will be the basis for reaching local agreement.

2. MAIN REPORT

2.1 Scope

Training contracts (including junior medical staff) are excluded from this document.

Permanent staff seconded or acting into fixed-term posts are beyond the scope of this document. The PIN Secondment indicates best practice relating to secondment, and terms and conditions relating to acting up are included in NHS terms and conditions of service.

2.2 Principles and Values

NHSScotland values all employees for the contribution they make to the service. As an exemplary employer we are committed to using permanent contracts of employment as the norm. Fixed-term contracts should only be used in defined exceptional circumstances and will be clearly time-limited. It should be recognised that while fixed-term contracts need to be used in some circumstances, advertising a post on a fixed-term basis may deter permanent staff from applying, thereby limiting career development opportunities.

NHSScotland is therefore committed to:

• ensuring that the partnership approach is used as the vehicle by which local agreement around implementation of this document is reached;
• promoting the use of these principles and values by partner agencies;
• restricting the use of fixed-term contracts to special cases where there is a clear business need to do so, in line with the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2001;
• reviewing and monitoring the use of fixed-term contracts in partnership with staff and their representatives in line with the Staff Governance Standard;
• ensuring that all fixed-term contracts specify the start date (and end date if possible), reason for the fixed-term nature of the contract or its duration, identifying where possible the minimum and maximum duration of the contract;
• ensuring that fixed-term contracts will contain the same core contractual terms and conditions of employment as permanent staff in line with the legislative framework;
• ensuring that fixed-term employment will not normally exceed two years in total duration, with objective justification being necessary for any extension;
• ensuring no more than two renewals in any one-year period, with objective justification being necessary for any more;
• ensuring good employment practice, as defined by PIN publications, is implemented on an equal basis for both permanent and fixed-term staff;
• ensuring there is regular communication with individual fixed-term members of staff to discuss issues surrounding their employment status and address any concerns; and
• ensuring that through the implementation of the above all fixed-term members of staff can expect to:

2.3 Definitions

2.3.1 Employee: an individual who works under a contract of employment (i.e. a contract of service rather than a contract for services).

2.3.2 Fixed-term Contract: a contract of employment

• which is for a specific term that is fixed in advance; or
• which terminates automatically on the completion of a particular task; or
• which terminates automatically upon the occurrence or non-occurrence of any other specified event (other than age-retiral of the employee or breach of the contract arising from the conduct of the employee).

2.4 Legal and Strategic Framework

2.4.1 Legal Framework

1. Employment Relations Act 1999 (Section 18)

Employees can no longer waive their right to claim unfair dismissal at the end of a fixed-term contract. Where an employee is on a fixed-term contract, dismissal at the end of the contract must be for a fair reason (usually redundancy) and the employee must receive proper notice of dismissal.

All non-renewals must be justified to the individual, regardless of duration of contract or reason for contract.

The waiver of the right to claim redundancy pay remains in law for employees on fixed-term contracts of two years or more.

2. European Community (EC) Directive on Fixed Term Work

The EC Directive on fixed-term work was agreed in 1999 and aims to prevent fixed-term employees from being less favourably treated than comparable permanent employees.

3. The Fixed-Term Employees (Prevention Of Less Favourable Treatment) Regulations 2001

These Regulations implement the EC Directive on fixed-term work in the UK, and require UK employers to:

• ensure that employees on fixed-term contracts receive no less favourable terms and conditions than comparable permanent employees, unless this can be justified objectively; and
• prevent abuse of fixed-term contracts arising from successive renewals.
• The three possible options for preventing such abuse are:
• the number of renewals of a fixed-term contract should be limited;
• the total duration of successive fixed-term contracts should be limited to four years; and
• fixed-term employees should be informed of organisational vacancies on the same basis as permanent employees.

4. NHS Reform (Scotland) Act 2004

This Act amends the 1978 Health Act in a number of respects, including inserting a new duty in relation to the management of staff at section 12 I. This duty states:

"12 I Duty in relation to the management of staff

It shall be the duty of each Health Board/Special Health Board and of the agency to put and keep in place arrangements for the purposes of

(a) improving the management of the officers employed by it;

(b) monitoring such management; and

(c) workforce planning",

and ensures staff governance has equal legislative parity with the rest of the governance framework (clinical and corporate governance) within which NHS employers must operate. The Staff Governance Standard (see 2.4.2) is the key policy document to support this legislation.

2.4.2 Strategic Framework

1. The HR strategy 'Towards A New Way Of Working'

This strategy prompted the review of the number and use of fixed-term contracts across NHSScotland. The Minister for Health and Community Care at that time made it clear that there should be an end to the inappropriate use of fixed-term contracts in the health service.

2. Staff Governance Standard

Staff governance is defined as

"a system of corporate accountability for the fair and effective management of all staff."

The Staff Governance Standard sets out what each NHSScotland employer must achieve in order to improve continuously in relation to how NHSScotland staff are managed and feel they are managed. Alongside clinical and financial governance, staff governance makes up the third pillar of the governance framework within which NHS employers must operate. This has been reinforced by including staff governance in the NHS Reform (Scotland) Act, thus enshrining it in legislation and giving it parity with the other two governance pillars. This means that organisations are now legally accountable for the management of staff.

The Standard itself is based on five key elements, stating that staff should be:

1 well informed;

2 appropriately trained;

3 involved in decisions which affect them;

4 treated fairly and consistently; and

5 provided with a safe and improved working environment.

Particularly relevant in this context is the requirement for staff to be treated fairly and consistently, regardless of employment or contractual status.

Assessment of organisational progress in relation to the Standard is carried out by the Area Partnership Forum (or equivalent) through the self-assessment audit tool (SAAT) and staff survey. The Area Partnership Forum (or equivalent) then produces an action plan and completes mandatory quantitative (statistical) and qualitative returns _ including information relating to organisational use of fixed-term contracts ² - which are audited by external auditors appointed by Audit Scotland. This information is then used in the Accountability Review process by the Scottish Executive Health Department. The role of trade union/professional organisation representatives is key to this process, and incorporated in legislation.

3. National workforce strategy

Explicitly referred to in the NHS Reform (Scotland) Act, workforce planning is recognised as one of the key strategic foundations on which organisational development and redesign must be built, and the national workforce strategy sets out how this will be taken forward for NHSScotland. Clearly, appropriate contractual status of staff _ including the use of fixed-term contracts - is an integral part of the process of workforce planning and development.

4. Modernisation Agenda

In the past, growth in the use of fixed-term contracts within the NHS has been primarily due to the need to manage change in a cost-effective manner. For example, the impact of community care and the increasing use of fixed-term pilot projects both led to an increased use of fixed-term contracts to ensure the redeployment of permanent staff and reduce the level of redundancy costs. Change is a constant feature of the NHS and therefore must be managed in a more proactive, people-centred way, through improved workforce planning. By reducing the number of fixed-term contracts, employers can:

• provide better continuity of care;
• improve staff morale and motivation through providing increased financial and personal security;
• reduce staff turnover and improve the retention of skilled staff;
• make more effective use of resources invested in staff development and recruitment advertising; and
• promote improved workforce planning and staff flexibility.

Evidence shows that the reduction in the use of fixed-term contracts since 1999 has had no adverse impact on redundancy costs.

2.5 Recommendations

2.5.1 Service planning

By identifying and planning for the new skills, knowledge and commitment required in the future, more staff can be offered permanent contracts and developed to meet the changing needs of the service. This approach requires not only the commitment of employers to develop good service and workforce plans, but also the commitment of staff to adapt to changing service demands, in line with their terms and conditions of employment.

• To promote this process, all service plans should include a workforce plan outlining not only staff numbers and grades, but also required competencies. These workforce plans will form the basis of service learning plans, which in turn will influence the personal development planning process ³.
• In addition, it is recognised that many of the competencies required of fixed-term members of staff will continue to be required in the future. Consideration should therefore always be given to appointing staff on a permanent basis, if a risk assessment shows that permanent employment may be available at the end of the fixed-term period (for example, due to an area of recognised skills shortage or to the flexibility of the core skills required). In such circumstances the likely availability of redeployment opportunities should be discussed with the individual both at appointment and as part of their ongoing personal development planning.

2.5.2 Appropriate Use of Fixed-term Contracts and Maximum Duration

In certain exceptional circumstances, fixed-term contracts may be a valuable tool to enable employers to cover short-term gaps in essential services, enabling consistent standards of service to be maintained. However, such contracts must only be used as time-limited, short-term options, and individuals should not normally be in non-permanent employment for more than two years. Circumstances where such contracts might be used include:

• protecting posts for staff due to organisational change, e.g. restructuring, closure of hospital and re-provision of service;
• covering leave (e.g. sickness absence; maternity leave; study leave; special or other leave);
• project or research posts;
• non-recurring funded posts; or
• backfill for short-term secondment.

Staff employed on a fixed-term basis are not generally disadvantaged by NHS terms and conditions of service. However, entitlement to redundancy payments may play a role in determining the duration of contracts, and this could disadvantage the employee. This would be an inappropriate justification for non-renewal of the employment contract.

When considering whether to appoint a post on a fixed-term basis, managers should follow the risk assessment framework outlined in Annex A of the model policy attached at Appendix 3.1. Where the decision is taken to use a fixed-term contract, the reason for doing so must be recorded.

No later than four to six weeks before the expiry date of the fixed-term contract, the manager must meet with the employee and discuss preparation for the termination date. This will include discussing possible suitable alternative employment. In addition, the HR department will also be able to advise on available support for the individual to help them find alternative employment, such as CV preparation, interview skills etc.

2.6 Training

To support full implementation of this document locally, it will be essential for NHS employers to ensure full awareness and understanding of the issues relating to fixed-term contracts. This may best be achieved by incorporating this into local management development programmes.

2.7 Monitoring

The use of fixed-term contracts will be monitored at national, regional/area, local and service level.

2.7.1 National

All NHS employers will be required to submit information on the use of fixed-term contracts as part of the staff governance self-assessment audit tool. This will form part of the performance assessment framework for NHS Boards and be used to promote consistent standards across NHSScotland.

2.7.2 Regional/area level

The Area Partnership Forum (or equivalent) will monitor the development of integrated workforce plans and the organisational learning plan, with a view to promoting the successful redeployment of staff across the area. Part of this monitoring may include analysing qualitative information gained from exit interviews or questionnaires completed by fixed-term staff (see 2.8). Divisional partnership structures may also wish to discuss this.

2.7.3 Service

Arrangements will be agreed for reviewing individual fixed-term contracts, in partnership, on a quarterly basis within each service area or directorate. Where the individual has not transferred to a permanent contract, the line manager must ensure that an effective communication framework is in place, and that the individual has equal access to relevant development opportunities.

2.8 Success Criteria

This document aims to ensure that

• fixed-term contracts are only used in appropriate circumstances; and
• staff on fixed-term contracts are kept fully aware of the current and planned future status of their post and have equal access to development opportunities.

While the reduction in the use of fixed-term contracts largely depends on the development of integrated workforce plans and service learning and development plans, the success of a policy on the appropriate use of fixed-term contracts will be measured through:

• quantitative data supplied in the SAAT;
• qualitative data supplied in the SAAT (reasons for fixed-term contracts); and
• qualitative data gathered through the use of exit interviews/ questionnaires. This type of questionnaire should explore the extent to which the individual felt they:
• had equal access to development opportunities;
• were kept informed about the current and likely future status of their post;
• had the opportunity to discuss any issues of concern; and
• had access to suitable alternative employment within the employing organisation.

Each organisation will wish to analyse the information from exit interviews/questionnaires, for the Area Partnership Forum (or equivalent) to consider along with other workforce information and issues.

2.9 Conclusion

NHSScotland is committed to reducing the number of its staff employed on fixed-term contracts, whilst ensuring that those unavoidably on fixed- term contracts are treated fairly, with equal access to development opportunities and the same core contractual terms as permanent staff.

To achieve these objectives, employing organisations must adopt a pragmatic, integrated approach to workforce planning, avoiding the short-term, least-cost, quick fix approach often adopted in the past. Linking this to robust workforce and learning plans will ensure that the service will be able to adapt more quickly to the changing demands placed upon it. It will allow staff with the right skills to be recruited, retained and developed, thus providing individual security, fairness and equality of opportunity for all staff.

Each appointing manager will contribute to the reduction in the number of fixed-term contracts by undertaking a risk assessment of each vacancy in the context of workforce plans.

Employing organisations, in partnership with trade unions and professional organisations, will be responsible for monitoring the use of fixed-term contracts and ensuring that staff on fixed-term contracts work under the same core terms and conditions as permanent staff.

APPENDIX 3.1

Model Policy and Procedure for Fixed-term Contracts

1 Introduction

As an exemplary employer, [name of organisation] is committed to

• using fixed-term contracts in a responsible and appropriate manner; and
• showing that we value all employees for the contribution they make to the services we offer.

The Staff Governance Standard requires that NHSScotland is able to demonstrate it is an exemplary employer through how staff are managed and how they feel they are managed. In practice, this incorporates the need for organisations to review their use of fixed-term contracts and move to a position where fixed-term contracts are used only in exceptional and clearly defined circumstances.

Employment legislation provides protection and certain rights for employees to prevent employers using such fixed-term contracts and successive renewals as an excuse to contract out of a liability for unfair dismissal or redundancy. Regulations exist to ensure that employees experience no less favourable employment terms and conditions than those of their colleagues who are employed on a permanent basis, and to limit the number and duration of successive fixed-term contracts.

This policy aims to ensure that:

• fixed-term contracts are used only in exceptional and defined circumstances, and are clearly time-limited;
• fixed-term employees are treated no less favourably than comparable permanent employees; and
• fixed-term employees can also expect to feel valued as individuals, have equal access to development opportunities that meet their identified needs, have a clear understanding of the current and planned future status of their post, and be given the opportunity to move to a permanent contract when suitable vacancies arise.

2 Purpose

The purpose of this policy and procedure is to:

• provide clear principles and values which will govern the appropriate use of fixed-term contracts;
• ensure compliance with legislation on the employment of people on fixed-term contracts;
• ensure all steps are taken to prevent less favourable treatment of people on fixed-term employment contracts;
• clarify the circumstances in which the use of fixed-term contracts may be appropriate; and
• provide a procedure for dealing with fixed-term contracts which is fair and equitable, and have both the interests of the employee and the effective operation of the service as its goals.

Training contracts (including junior medical staff) are not covered by this policy.

3 Principles and Values

We are committed to:

• restricting the use of fixed-term contracts to occasions where there is a clear business need to do so, in line with the Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2001;
• providing permanent employment wherever possible using flexible forms of contract based on effective workforce planning;
• ensuring that all fixed-term contracts have a start and end date or specific duration, and contain the same core contractual terms and conditions of employment as permanent staff in line with the legislative framework;
• reviewing and monitoring the use of fixed-term contracts in partnership with staff representatives in line with the principles of staff governance;
• ensuring there is a framework of regular communication with individual fixed-term members of staff to discuss issues surrounding their employment status and address any areas of concern; and
• promoting the use of these principles and values by partner agencies.

4 Procedure for Use of Fixed-term Contracts

In certain exceptional circumstances, fixed-term contracts may be a valuable tool to enable employers to cover short-term gaps in essential services, thus enabling maintenance of consistent standards of service. Such contracts must only be used as short-term options, be time-limited and individuals should not be more than two years in fixed-term employment. Circumstances where such contracts might be used include:

• protecting posts for staff due to organisational change, for example, restructuring or re-provisioning of services;
• in support of service provision, for example to cover
  • sickness absence;
  • maternity leave;
  • study leave;
  • special leave;
• project or research developments;
• filling non-recurring funded posts; or
• back-filling short-term secondments.

4.1 Recruitment

If a short-term service development need exists, consideration must first be given to using a permanent contract, which may then move within the organisation at a later date. To assist in this process a rigorous risk management process should be applied
(see Annex A).

If risk assessment identifies that a fixed-term contract would be appropriate, managers should approach the recruitment to such a post in a responsible and consistent manner. They must clearly define the period the job is to last, and/or the reason for the fixed-term nature of the position.

The fixed-term nature of the post should be clearly evident in the advertisement, job information package, letter offering employment, and subsequent contract of employment.

The following paragraph should be inserted as appropriate:

"This contract is for a fixed term until [ date/duration]. The reason for the fixed-term contract is [ reason].

An additional standard paragraph should be inserted in all documentation to reflect the support the organisation will provide the employee in seeking further employment for when the fixed-term contract ends.

4.2 Review of Fixed-term Contract

To assist in ensuring employees on fixed-term contracts of employment are treated fairly and consistently, the following principles must be adopted when the post is being reviewed:

4.2.1 All staff on fixed-term contracts will have their position reviewed mid-term and thereafter at regular intervals as appropriate. The outcome of this review must be discussed directly with the employee and the outcome confirmed in writing.

The three options are:

1. No change in the plans and expectations of the fixed-term nature of the contract. The contract will run for the duration originally specified, with redeployment options being explored as described at 4.4.2.

2. There is a requirement to extend the length of the contract (see 4.2.2). Where there is an objective and organisational justification for extending the contract, the manager should secure agreement from the employee for the fixed-term contract to be renewed. The manager will then arrange for a variation to the contract of employment to be issued to the employee using existing organisational procedures such as a change form (see Annex B). A model letter is included at Annex C.

3. Offer a permanent contract of employment. If the post is to become permanent, this may need to be advertised depending on the reason for the change to the contract's status, for example, if there is a substantive change to the nature of the post. If the post has been renewed successively (see 4.2.2 and 4.3), it may also become permanent without the need to advertise.

Notice of the renewal or reminder of expiry of the contract must be at least one month before the expiry of the current contract, again using existing organisational procedures in conjunction with the HR department.

4.2.2 Renewals of fixed-term contracts

There should be no more than two contract renewals in any one-year period of employment, with objective justification being necessary for any more renewals.

Neither the initial contract nor renewal period should be for less than three months other than for clear, objective and specified reasons, for example, awaiting confirmation of return from maternity leave (in which 21 days notice is all that is required from the employee on maternity leave). In such circumstances it would be reasonable and justifiable to offer one-month renewals.

4.3 Continuous Fixed-term Employment

Overall continuous fixed-term employment (whether on a single fixed-term contract or on a series of successive fixed-term contracts) should not exceed two years, with objective justification being necessary for any extension.

Staff who have continuous service of more than two years (within successive fixed-term contracts) will be appointed onto a permanent contract if the following criteria are all met in full:

• the member of staff has held fixed-term contracts concurrently which were used to protect posts for permanent staff due to planned organisational change, service reconfiguration or redeployment;
• the member of staff has been employed for more than two years; and
• recurring funds for the post beyond the two-year period exist, which can be used to retain the member of staff, or a positive risk assessment has been carried out to establish the impact on the organisation should it be non-recurring funding.

In situations where an employee achieves two years' service, and it is known that the contract will not be renewed within three months of the date of achieving two years' service, the individual's contract of employment will remain fixed-term.

4.4 Expiry of Fixed-term Contract

4.4.1 Process

Although an expiry date (or reason) will be detailed on a fixed-term contract, the manager must meet with the employee and discuss preparation for the termination date no later than four to six weeks before the expiry date of the contract. The outcome of this discussion must be confirmed in writing, along with details of the reason why the contract is not being renewed. (See Annex D for an example of a letter confirming expiry of a fixed-term contract).

If the fixed-term contract expires, but the employee continues to work and be paid, then a contract for an indefinite period comes into existence by implication.

Ending employment for a fixed-term member of staff must be handled in the same way as for a permanent employee. A staff member on a fixed-term contract also has the same rights as a permanent member of staff (for example, the right not to be unfairly dismissed, the right to notice on termination (if this is before a specified fixed term expires), the right of appeal against dismissal under the organisation's policy etc).

Should an employee have more than two years' continuous service, a redundancy payment under contractual terms and conditions of service should be made.

4.4.2 Exit Support

As part of their personal development plan, the employee will meet with their line manager to discuss the likely availability of redeployment opportunities.

In addition, the HR department will provide the opportunity for the employee to receive advice on available support to help them in their search for alternative employment e.g. CV preparation, interview skills etc.

An exit interview/questionnaire should be completed, which should explore the extent to which the individual felt they:

• had equal access to development opportunities;
• were kept informed about the current and likely future status of their post;
• had the opportunity to discuss any issues of concern; and
• had access to suitable alternative employment within the employing organisation.

Reasonable time off will be given by the manager for the employee to attend interviews within one month prior to the expiry of the contract.

Fixed-term employees should also have access to the normal internal vacancy bulletins or similar arrangements on the same basis as comparable permanent employees.

5 Conditions of Service

Employees on fixed-term contracts of employment should have the same contractual terms and conditions of employment as comparable employees in their organisation. This includes pensions and learning and development opportunities. Any differences need to be objectively justified, for example, where the condition may not reasonably or realistically be met within the expected duration of the contract.

6 Monitoring and Measuring Success

The success of a policy on the appropriate use of fixed-term contracts will be measured through:

• quantitative data (numbers of fixed-term contracts) supplied in a quarterly report;
• qualitative data (reasons for fixed-term contracts) supplied in a quarterly report; and
• qualitative data gathered through the use of exit interviews/ questionnaires. This type of questionnaire will explore the extent to which the individual felt they:
  • had equal access to development opportunities;
  • were kept informed about the current and likely future status of their post;
  • had the opportunity to discuss any issues of concern; and
  • had access to suitable alternative employment within the employing organisation.

Within [name of organisation], this information will be monitored at two levels:

1. Area Partnership Forum [or equivalent]

The Area Partnership Forum will monitor the development of integrated workforce plans and the organisational learning plan, with a view to promoting the successful redeployment of staff across the area. Part of this monitoring will include analysing qualitative information gained from exit interviews or questionnaires completed by fixed-term staff. Divisional partnership structures may also wish to discuss this.

2. Service

Arrangements will be agreed for reviewing individual fixed-term contracts, in partnership, on a quarterly basis within each service area or directorate. Where the individual has not transferred to a permanent contract, the line manager must ensure that an effective communication framework is in place, and that the individual has equal access to relevant development opportunities.

7 Grievances and Right of Appeal

Any employee who feels aggrieved in the application of this policy during employment should raise this through the organisation's policy on Managing Employee Concern.

Current employment law provides that terminating the fixed-term contract of an employee with at least one year's service equates to dismissal. Employees therefore have the right to appeal against the dismissal using organisational procedures. Any such appeal should be lodged within three weeks of receiving the letter confirming expiry of the contract, which the manager will have issued one month before the contract ended. Employees also retain the right to claim unfair dismissal.

8 Review of Policy

This policy will be reviewed at least every two years through the organisational policy review mechanism.

Risk Assessment/Review Framework (Individual or Group)

Any success in reducing fixed-term contracts depends on robust workforce planning processes. The following checklist may help managers to identify if fixed-term contracts are necessarily the most appropriate means of filling a post. By completing the risk assessment process, managers will be able to make an informed decision as to whether a permanent appointment can be made. Managers should also use this risk assessment process to review the status of fixed-term contracts periodically, to see if it might be possible to make the post permanent.

The local health plan, with its associated workforce and learning plans, will identify areas of recruitment and retention difficulty. The planning process will allow managers to look at issues beyond their own service boundaries and take a more corporate and proactive approach to ensure best practice in staff recruitment and retention, using fixed-term contracts as appropriate.

This process can be used to review individual vacancies. However, at a corporate level an annual risk assessment for individual staff groups should be carried out by the Area Partnership Forum (or equivalent).

In weighing up these factors, managers should apply their knowledge of their service and any recruitment and retention issues which are unique to their area. The following points are core but managers may wish to include additional points to suit local circumstances:

• Turnover for staff group
• Vacancy factor
• Average time to fill posts
• Contributory factors e.g. geography, market, and contract duration
• Ability to recruit
• Proposed service developments
• Impact on service of failure to recruit
• Secondment opportunity
• Cost of post/financial impact
• Consideration of clinical and corporate risk

Footnotes

^{1 through the NHS Reform (Scotland) Act 2004
2 This return now supersedes the information required by MEL (1999) 28
3 This is covered in greater detail in the PIN on Personal Development Planning and Review.}