#BTColumn – Should I accept this offer?

Disclaimer: The views and opinions expressed by the author(s) do not represent the official position of Barbados TODAY.

by Carol-Ann Jordan and Jacqueline Belgrave

“I am employed in a permanent position. Recently I received an offer of a higher position with another company but this offer is on a contract for a period of three years with an option to renew when the time hhas expired. Should I accept this offer under these terms?”

The decision regarding whether you should accept this offer lies with you, but we advise that as you make your decision you consider the below factors which we will share with you.

Over the years, employers have been looking at employment arrangements they consider to be more flexible and “pragmatic”.

This has resulted in fewer permanent roles being offered, and greater use of fixed term contracts to enable immediate workforce needs to be met without the long-term commitment and costs associated with permanent arrangements, even where the tasks to be performed are permanent tasks.

The offer of fixed term contracts is especially noticed at more senior levels within both private enterprises and public sector agencies.

In your case, being a “permanent” employee means that you have an indefinite contract. This means that your current contract has no end date.

As such you will first have to make a choice between the relative job security you now enjoy and the opportunity to earn more to support yourself and your family. In order to take advantage of an opportunity to earn more and the benefits which would normally flow from this, you may have to give your “job security” up and take a risk.

Even though a job for life appears to be a concept that is disappearing in these times, the risk you are being asked to take is tied to the opportunity of earning more for three years but without knowing for certain whether the contract would be renewed for another fixed term.

It is possible that at the end of the three years, you may be offered another contract for another fixed period.

However, it also possible that the end of the three years, your contract may be terminated by its expiry because inherent in an option to renew is also the option not to renew.

Employees engaged on fixed term contracts have the same general employment rights as permanent employees. You will be governed by the different pieces of employment legislation that ensure you are treated fairly.

However, these employees receive a lower level of protection with respect to terms of termination of employment when compared to those covered under contracts of indefinite duration.

We have explored only one way in which these arrangements may affect an employee’s security. Additionally, however, you must also be aware that:

1. As an employee engaged on a fixed term contract, your engagement effectively comes to an end when the contract comes to an end, i.e. at the date given in the contract.

Each contract you receive is a new contract and so any time spent with the same employer will not accumulate to make the arrangement more secure.

This means that it is highly unlikely that you will receive any documentation from your HR Department which states that you have been engaged for any cumulative period.

For example, let us say that if you were first engaged for the period 2018 to 2021, and was again engaged for the period 2022- 2025 any correspondence you receive under your second contract will say that you are employed for the 2022 to 2025 since the contract covering 2018 to 2022 has already expired.

2. Employees in these temporary arrangements are often unable to access long term credit and loans (e.g. mortgages, hire purchase arrangements) because their employment is seen as temporary.

As a result, financial institutions assess the employee’s risk of default much higher than they do persons who are in “permanent” or more traditional working arrangements and, more often than not, the employee is unable to benefit from the services being offered by these entities. Again, this undoubtedly affects the employee’s ability to improve their own standard of living.

3. The decision to use fixed term contracts for some positions forces the successful applicant to choose between security of tenure and professional growth and development.

The decision can undermine workplace relationships and erode employee goodwill and it has the potential to demoralize and demotivate existing employees – especially the organisation’s top performers (however these are defined) who may see their opportunities for promotion being curtailed as a result.

Of course, all this has implications for the culture which may exist within the workplace of the company which has made the offer and no doubt you have done your own research to get a sense of what the culture is like.

These are the factors you must take into consideration as you decide what is best for you in the current circumstances. We certainly hope we have assisted your understanding of the issues as you contemplate your next step.

About Lifeline Labour Solutions: Lifeline Labour Solutions is a boutique partnership providing people management solutions to workplace challenges. Partners Carol-Ann Jordan and Jacqueline Belgrave are established practitioners with a wealth of knowledge and experience in Employment Relations, Labour Relations and Human Resource Management between them. Email: info@lifelinelabour.com; Tel: 1(246)247-5213