Fixed-term contract

Define the end point clearly

A fixed-term contract employs someone until a stated date, completion of a task or another specified event. Project work, seasonal demand and cover for an employee on family leave are common examples.

The person must still be an employee of the organisation. Someone supplied by an agency, doing work experience or working under a contract of apprenticeship can fall under different rules. The GOV.UK fixed-term definition sets out the current Great Britain scope and exclusions.

State why a fixed term is being used and describe the end point precisely. “Temporary” says very little. “Until the stockroom relocation is complete” gives both sides something they can identify.

Plan the ending before it arrives

If the employer may need to end the contract early, include a suitable notice clause. Without one, ending it before the agreed date or event can create a breach-of-contract problem.

Set a review date while there is still time to decide whether the work is ending, continuing or changing. Tell the employee what is proposed and deal with notice, alternatives and payroll before the final week.

Non-renewal is still a dismissal

A fixed-term contract can normally reach its agreed end without notice, but deciding not to renew it is treated as a dismissal. Check the business reason, whether another role is available, what notice applies and whether redundancy rights may be relevant. The GOV.UK ending guidance explains the current position in Great Britain.

Do not treat an employee less favourably than a comparable permanent employee simply because their contract is fixed-term unless the difference can be objectively justified. Successive contracts can also affect continuous employment and whether the arrangement remains fixed-term, so review the full history before issuing another renewal.