Are ‘Budget Restraints’ Sufficient Grounds for Renewing Employees’ Fixed-term Contracts Instead of Offering Them a Permanent Position?

Posted in : First Tuesday Q&A ROI on 5 September 2023
Aoife Brady
A & L Goodbody LLP
Issues covered: Contracts of Employment, Fixed Term Contracts

Employers who frequently deal with fixed term workers will be well accustomed to the obligations surrounding fixed-term contracts and the rights employees under fixed-term contracts are afforded under the Protection of Employees (Fixed-Term Work) Act 2003 (the Act) with respect to their treatment in comparison to a comparable permanent employee.

In particular, employers are prohibited from renewing employees’ fixed-term contracts on more than two occasions where the duration of the contracts exceeds four years. There is, however, an exception to this rule. Employers may renew a fixed term contract where there are sufficient objective grounds justifying why the employer cannot offer the

Already a subscriber?

Click here to login and access the full article.

Don't miss out, register today!

Are you fully aware of the benefits of Legal-Island's Irish Employment Law Hub? We help thousands of people like you understand how the latest changes in Irish employment law impact your business through a mix of case law analysis and in-depth articles. All delivered right to your inbox.

We help you to understand the ramifications of each important case from Ireland and Europe.

We help you ensure that your organisation's policies and procedures are fully compliant with Irish law.

You will receive regular updates on Irish employment law including case law reviews, legislative changes, topical updates as well as answers to your burning questions through our Q&A feature.

You will have 24/7 access to the Employment Law Hub so you can research case law and HR issues when you need to.

Already a subscriber, now or Register

Back to Q&A's This article is correct at 05/09/2023

The information in this article is provided as part of Legal-Island's Employment Law Hub. We regret we are not able to respond to requests for specific legal or HR queries and recommend that professional advice is obtained before relying on information supplied anywhere within this article.

Aoife Brady
A & L Goodbody LLP

The main content of this article was provided by Aoife Brady. Contact telephone number is +35316492490 or email

View all articles by Aoife Brady