On 1st May 1999 the European Commission adopted a proposal for a Directive to require member states to implement the "framework agreement on fixed-term work concluded by the social partners" (UNICE, CEEP and the ETUC) on 18th March 1999. This was later (28th June 1999) formally adopted as Council Directive 1999/70/EC.

The Fixed Term Workers Directive (also known as the Fixed-Term Contracts Directive) provided that it must be implemented by 10th July 2001. However a let out gave Member States a maximum of one more year "following consultation with management and labour, to take account of special difficulties or implementation by a collective agreement" (art 2). The British government took full advantage of this extension (plus a bit - see notes at Fixed term contracts/2002 regulations ).

See also notes under Fixed term contracts generally and especially notes at Fixed term contracts/conversion to permanent contracts .