Derek McDowell (Labour)

I am in two minds about this. My major concern which I expressed on Second Stage is that this will become something similar to the tenancy arrangement where it is common for people to have a tenancy for four years and nine months, after which it is effectively terminated. I hope we are not creating a similar situation in regard to fixed-term contracts, that once one gets into the fourth year, or the fourth year plus a renewal, employers will seek to terminate the contract altogether.

In recent years the courts and the Employment Appeals Tribunal have tended to look behind fixed-term contracts and if such contracts are clearly intended to deprive workers of their rights, they tend to set them aside because one is effectively seeking to opt out of, for example, the Unfair Dismissals Act. On balance, however, we should not have to rely on the courts to do this. We should try to be as explicit as we can in legislation in order to strike a balance. Perhaps one year is too little but I am sure that four is too long. Equally, the provision whereby the final renewal can be open-ended or not of specific duration will have to be changed. Even if the Minister of State is not inclined to accept the first part of Senator O'Toole's amendment dealing with the fourth year element, he might at least be significantly more specific about the final renewal element in order that it can be, for example, for a maximum period or particular purpose.