Can a Contract Job Ever be Permanent? Your questions on Contract and Permanent Roles answered!

By Fay Capstick

This week, we shall be clearing up some questions about contract and permanent roles that we have been asked. These relate to whether there is any limit to how long you can be on a contract in the UK and whether you might ever be able to be considered a permanent employee.

Is there a maximum amount of time that I can be employed on a contract basis in the UK?

Our research has concluded that there is no maximum number of years that an Agency Contractor can be deployed in a company on a continuous tenure basis, but it comes down to the nature of the contractual relationship. Uber V Aslam suggests that a court would look at any specific documents relating to the terms of the relationship to decide if someone is a contractor or a worker with rights. This would suggest that the length of employment is not relevant in UK law, what is relevant is whether the relationship between the parties has changed in nature or wording.

As a contractor, could I claim employee rights?

Being inside IR35 puts you in a position that is very like that of an employee. The same series of tests that apply to IR35 status are applied to those trying to prove that they are, in fact, employees and not contractors. However, you would have to convince the Employment Appeals Tribunal. This would be a huge legal fight with the burden of proof on the contractor, and you are very unlikely to win.

It is very important for everyone that the nature of the relationship between you and the client is clearly defined. This will make things watertight for both sides.

What about if I am a self-employed contractor?

Self-employed contractors do have some limited rights, such as the right not to be discriminated against and to be protected under health and safety laws. This is the same as a full employee. However, you do not enjoy the same benefits as a company employee such as receiving company benefits.

I heard something happens to me after 2-years as a contractor, what is this?

For the record, something interesting does happen at the 2-year point of continuous service (for Self-Employed contractors). At this point, you, the contractor become eligible for redundancy payments and protection from unfair dismissal, so this is worth bearing in mind when negotiating a contract.

And what about at 4-years?

Yes, further, after 4 years of continuous service on fixed-term contracts, you could automatically become permanent, unless your employer can justify continuing on a contract basis.

However, a recent case by a person on repeated fixed-term contracts (as a locum consultant breast surgeon), who tried to claim perm status after 4 years was lost at an Appeal tribunal. This shows that it is far more nuanced than a simple ‘4-year and then convert process’.

Should you want to read it, here is the full judgement in Lobo v University College London Hospitals NHS Foundation trust: https://www.bailii.org/uk/cases/UKEAT/2024/91.html

Can I go back to an employer I have been on contract for, or is there a mandatory waiting period?

Individual companies may have self-imposed colling periods before considering re-hiring a contractor, but there is no UK legislation defining a minimum period. It is important that you check with your prospective employer and, as always, read the contract carefully. We always recommend that if you have any questions regarding the terms of a contract that you get legal advice.

Our actual experience is that many organisations have NO cooling period, and are more than happy to re-engage a worker the moment you finish up on one project, and will start you right away on a new project.

We hope this helps! Please feel free to send us any more questions that you have and we shall attempt to answer them in a future blog.

Final Thoughts

At Parker Shaw we have been at the forefront of the sector we serve, IT & Digital Recruitment and Consulting, for over 35 years. We can advise you on all your hiring needs. If you are looking for your next job in the IT sector please check our Jobs Board for our current live vacancies at https://parkershaw.co.uk/jobs-...;