Microsoft Limits Term of Temp Work Amid Suits, Bad Press

REDMOND, Wash. —  Microsoft Corp. is limiting its temporary workers to one year of employment at a time, with 100-day intervals in between--a move that will force as many as 1,500 of its long-term contract workers to find new jobs or seek permanent positions there.

Microsoft’s policy change, announced Friday, follows pressure from litigation and union organizers to bar use of so-called permatemps--temporary workers who stay in the same job for years, but without the benefits offered permanent workers.

The software giant began informing temp agencies early last week of the new policy, which goes into effect July 1. In the past, there was no limit on the amount of time temp workers could stay at Microsoft.

Microsoft “is slowly but painfully finding out that they have to treat people who work full time, year round, as regular employees,” said Mike Blain, a former contract worker at Microsoft and co-founder of the Washington Assn. of Technical Workers, a local labor group.

The company’s permatemp practice was challenged in two lawsuits filed by long-term temporary workers who want permanent-worker benefits. Microsoft lost one case, which won temp workers the right to buy Microsoft stock at a 15% discount. The second suit, seeking medical and retirement benefits, is pending.

Sharon Decker, Microsoft’s director of contingent staffing, said the company made the change because of the lawsuits and negative publicity about the permatemp issue.

The average temporary assignment at the company is about 10 months, she said.