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Do fixed term employees have any rights under the Civil Service Compensation Scheme (CSCS)?

Appointment Terminates at the End of a Fixed Term Contract

6.3.14 A fixed term employee whose contract is terminated on the expiry date on the grounds of redundancy may be entitled to compensation under the scheme. The expiry of a fixed term appointment is not automatically a dismissal on the grounds of redundancy and you should consider taking legal advice on this point. Where the termination is on the grounds of redundancy, Scheme Manager approval for making a payment is not required. You are also not required to follow the procedures set out in the Cabinet Office Protocol for handling surplus staff situations (2016 Protocol – Civil Service Redundancy Principles). In addition, the requirement to offer Voluntary Redundancy before making an employee compulsorily redundant does not apply where a fixed term appointment is terminated on its expiry date. As a matter of good practice you should advise the employee when nearing the end of their contract that it will not be extended.

6.3.15 As long as the fixed term employee has at least 2 years qualifying service and is being dismissed for redundancy, they will receive the same compulsory compensation terms as a permanent employee. You should notify the Scheme Administrator in the normal way asking for Compulsory Redundancy terms and giving a Scheme Reference number CR (name of employer e.g. DWP) FTAE (CR DWP FTAE). No compensation is payable for contracts under two years.

Early Termination of a Fixed Term Contract

6.3.16 If you propose to terminate a fixed term contract early for redundancy, you must first make an offer to that employee for a departure using Voluntary Redundancy terms (and give three months’ notice). You will not require Scheme Manager approval or need to follow Scheme Manager Protocol. You should notify the Scheme Administrator in the normal way asking for Voluntary Redundancy terms and giving a Scheme Reference number of VR (name of employer e.g. MOD) FTAM (VR MOD FTAM). Where such offer is not accepted, you can go straight to Compulsory Redundancy without seeking Scheme Manager approval. You should notify the Scheme Administrator in the normal way giving a scheme reference number CR (name of employer) FTAM (CR MOD FTAM).

6.3.17 Where such an offer is not accepted, you can go straight to Compulsory Redundancy without seeking Scheme Manager approval. You should notify the Scheme Administrator in the normal way giving a scheme reference number CR (name of employer) FTAM (CR MOD FTAM). If the individual’s contract stipulates a notice period for early termination, they will receive the same Compulsory Redundancy terms under the CSCS arrangements as a permanent employee, with the appropriate notice period stipulated in the contract.

6.3.18 If the employee’s contract does not stipulate a notice period for early termination they should receive the better of the Compulsory Redundancy terms under section 12 of the CSCS or section 8 of the CSCS (the compensation payment under section 8 will be calculated by Government Actuary’s Department (GAD)).

6.3.19 If an employer wishes, those on a fixed term appointment can be considered for early departure under a departmental wide Voluntary Exit or Voluntary Redundancy scheme. If accepted they must be treated the same as permanent members and the normal terms will apply. Approval from the Scheme Manager will be required for the scheme. If approved, the scheme will be given a scheme reference number. This number should be used for permanent and fixed terms employees when requesting quotes from the Scheme Administrator.
Please note: Any notice periods for early termination of fixed term contracts will not have the effect of extending the period of the contract.

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