Cheryl Lobo v University College London Hospitals NHS Foundation Trust – renewal of fixed-term contract

In the recent Employment Appeal Tribunal (EAT) Cheryl Lobo v University College London Hospitals NHS Foundation Trust, Cheryl Lobo, who worked as a locum consultant breast surgeon, claimed that her continuous service over four years under successive fixed-term contracts should qualify her as a permanent employee. She sought a declaration from the Employment Tribunal (ET) to confirm this status.

Cheryl Lobo v University College London Hospitals NHS Foundation Trust: the case

Ms Lobo was employed as a locum consultant by the Trust under a series of fixed- term contracts. Following four years’ service, Ms Lobo wanted her employment to be deemed as permanent under the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002.

Under s8 of the Regulation, the ET considered whether there was a justified objective ground for a fixed term contract, or series of fixed term contract for a continuous period of four years, to not be permanent at the time it was entered into or renewed.

The Tribunal held that the consultation of the fixed-term contact beyond four years was objectively justified. This was based on the fact the Trust had conducted a comprehensive review of the department services. Additionally, there was a vacancy for a permanent substantive consultant for which Ms Lobo was considered but was not successful. This decision was based on the clinical cover, consultant level and the service. The role was different to the locum role Ms Lobo worked in and the Trust did not need a permanent employee carrying out the same duties as the locum consultant role.  The EAT upheld the decision finding that the Trust had a legitimate business rationale to maintain the fixed term contract relating to regulatory and business requirements.

Comments

The ruling confirmed that employers need to have clear justifications to support decisions in relation to employment status, supported by a legitimate business objective when using of fixed term contracts.

Further guidance and support

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This content is correct at time of publication