Fixed-term contract: How to deal with contract renewal and salary.

Joined
Aug 16, 2016
Messages
10
#1
In November 2017 I was hired at my current job on a one-year contract that expires in November 2018. I am not an independent contractor -- my company pays my PAYE and offers some benefits, time off, etc.

About six months into my contract my employer indicated they were happy with my work and that they want to renew my contract once it expires. A salary figure for the new contract was agreed on (verbally) and I carried on with the expectation that once I received my new contract, it would reflect the discussed salary.

Instead, I received the new contract and it reflected my current salary. When I queried this with my employer, they said that salary reviews are done in January and I would have to sign now and wait until then to know what salary I would receive.

I find it ridiculous that I am expected to sign another one-year contract with no legally-binding confirmation of what my salary will be for the entirety of 2019. For all I know, they could decide not to increase my salary at all -- then I am locked into employment with them for another year at a salary I'm unhappy with.

I verbalised all of this to my employer, but they brushed it off as "how they do business".

Am I being unreasonable? If they are unable to raise my salary until January I understand, but I would at least expect written confirmation of what my salary will be increased to come January.

Any advice would be greatly appreciated.
 

Tomtomtom

Senior Member
Joined
May 6, 2010
Messages
733
#2
Well there's clearly some shadiness on their part, but whether you're being unreasonable depends entirely on what you think the alternatives are when your current contract expires.

Could you move on to another job immediately, at your expected income? Would a month-long search make you regret not taking the renewal at the current level?

Why don't you amend the contract so it suits you, sign that version, and put the ball in their court?

If that feels too risky, go back to step one and re-assess your market power.

What you shouldn't do is sit back passively and hope for a mid-term contract amendment. You either need to accept you're getting no increase for the next 12 months, or demand it on the contract and be prepared to walk away.
 

kota

Active Member
Joined
Jul 5, 2018
Messages
36
#3
If they had verbally agreed previously and now won't even give you something in writing nor verbally tells you that you will get an increase as originally promised post Jan. Then I think the chance of them giving you any raise at all is questionable, not sure if this will suit your position, but perhaps see if you can renew the contract for only another 3 months / 6 months, and start looking for another job in the mean time?
 

beefymoocow

Well-Known Member
Joined
Jun 19, 2006
Messages
425
#4
Yea i guess sign if you have no other option andlook for something in themean time. Check the notice period as well.
 
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