PRESS RELEASE 7 November 2001

Hundreds of thousands to lose out on new rights for fixed-term workers

Low Pay Unit today urged the government to re-consider plans to exclude hundreds of thousands of people from protection under new legislation on fixed-term contracts.

Under the forthcoming employment bill, due to be unveiled tomorrow, it is anticipated that the government will seek to limit the numbers of those benefiting from new rights for those working under fixed-term contracts. The proposals seek to end discrimination in terms and conditions such as pay and pensions.

By adopting the narrower legal definition of "employees", rather than the wider category "workers", many people in low-paid and casual employment will be excluded from protection under the new legislation.

It its response to the DTI's consultation paper, the Low Pay Unit argued that any restriction of the new fixed-term rights to "employees" will represent a failure to implement the letter and the spirit of the European Directive on Fixed Term Work.

Bharti Patel, Director of the Low Pay Unit said:

"Under the national minimum wage and statutory paid holiday legislation, the government rightly argued for rights to be extended to cover all workers - not just 'employees'. So, it is puzzling why the Government is taking this line.

The same minimum standards of protection for all workers should surely apply to the new rights for people on fixed-term contracts. Otherwise hundreds of thousands of the most vulnerable people working in low-paid and casual types of employment will lose out."

For further information contact: Bharti Patel, Director on 020-7435-4268 or 07887 567 494 (mobile) or Justin Phipps, Employment Rights Officer on 020 7435 4268

Notes to Editor:

• The European Directive on Fixed-Term Work was agreed by the European Council in 1999. It was due to be implemented in the UK by 10th July 2001.
• The Department of Trade and Industry issued a consultation paper on proposed legislation in March 2001.
• According to the DTI consultation paper, there are 1.1-1.3 million "employees" and 1.4 million "workers" employed under fixed-term contracts who could be affected by the proposed legislation.