Navigating Contract Renewals: Is It Legal to Re-advertise a Fixed-term Position?

If anyone can give me advice on the following, I would be very grateful:

You have a permanent position, but the person in that position is on a fixed-term contract. Is it legal to inform that person that the contract will not be extended for them and will be readvertised? Are you legally obliged to give them a reason?

When advertising a position, is there a conflict of interest if the temporary employee you get to fill the vacancy while recruitment is in progress is, in fact, an applicant for the position?

Please help

What does "conflict of interest" actually mean? Seniors, please explain this point to me.

Fauzia

Dear All,

Conflict of interest means that an employee cannot use their purchasing power to contract or purchase services, products, or equipment from a firm that is owned by their friend or relative without prior consent from the Managing Director or authorized person. An employee cannot accept gifts, goods, services, or bribes that fall outside of normal business practices and were received with the intent of influencing the purchase of goods or services from the supplier.

If there are any queries, feel free to ask.

Regards,
Pradnya

Hi Effie,

It can be legally allowed provided the current employee in the post has been strictly issued a fixed-term contract. However, it is good practice to let him/her know why their contract is not being extended.

It looks like the term "conflict of interest" is misused here unless you are trying to say that the current employee has been involved in practices that are in direct conflict with the company's interests and the duties he/she is carrying out, hence they cannot continue in their role beyond the agreed period. If this is the case, then he/she should be aware that even if they apply for the next phase of recruitment, they are likely not to be shortlisted.

This practice is quite dangerous in countries like the UK and US where temporary employees have legal rights. It is worth checking if such rights exist in India.

Happy to help you further.

HR Practitioner.