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Ending a fixed-term contract

If you are on a fixed-term contract, generally no notice of the contract reaching its end date will need to be given by the employer. However, failing to renew a fixed-term contract is considered to be a dismissal. You have the right:

• not to be unfairly dismissed (after one year’s service)
• to a written statement of reasons for the dismissal (after one year’s service)
• to statutory redundancy payments (after two years' service)
• to a minimum notice period of your contract ending before the agreed end date, task or event

The minimum notice period you are entitled to is:

• after one month’s continuous service, but less than two years: one week’s notice
• after two years continuous employment: two weeks’ notice if you have been continuously employed for two years

If your contract states you should have been employed for one month or less, but you have actually been employed for three months or more, you are still entitled to the minimum notice period of one week.

If you have been employed for one month or longer, then you must give your employer the statutory minimum notice of one week. If your contract states that you should give a longer notice period than the statutory minimum, then you have to give your employer this length of service.

• Employment contracts

• Being dismissed by your employer

• Unfair dismissal

• Notice pay

Ending fixed-term contacts early

If your employer wants to end your fixed-term contract early you should check the terms of your contract. If it says your employment can be ended early and your employer has given proper notice, there is little you can do. However, if it doesn't say anything, your employer may be in breach of contract.

• Breach of contract

Working longer than the contract's end date

If you worked past the end of your contract (for instance, you were kept on for a year when your original contract was for three months), there is an implied agreement by your employer to change the end date. You would then have the right to be given proper notice if your employer wanted to dismiss you.

• Notice pay

Redundancy rights

If your employer is laying off employees in the type of work that you carried out, this could mean that you have been dismissed on the grounds of redundancy. If you have two years or more continuous service as a fixed-term employee, you have the same redundancy rights as permanent employees. You are also protected from being selected for redundancy because you are a fixed-term employee, unless your employer can 'objectively justify' the choice. This means they must give you a good reason that is based on the needs of the business.

You cannot waive (opt out of) your right to receive statutory redundancy payments and your employer cannot exclude you from the statutory redundancy scheme, even if it appears to be objectively justified.

• Redundancy

How long can an employer keep on renewing a fixed-term contract?

An employee can be kept on successive fixed-term contracts for a limit of four years. If your contract is renewed after that you become a permanent employee. This is unless the employer can show a good reason why you should stay on a fixed-term contract. Only service from 10 July 2023 is counted towards the four-year limit.

The four-year limit was introduced to prevent employers abusing the use of successive fixed-term contracts to limit employees' employment rights. The limit can be changed by employers and employees agreeing a 'workforce' or 'collective' agreement. This agreement should then provide an alternative scheme for preventing the abuse of fixed-term contracts.

Workplace or collective agreements can vary the limit on the length or number of successive contracts used by an employer. They can also limit the use of successive contracts and set a list of reasons to justify renewals of fixed-term contracts.

Can an employer renew a fixed-term contract on less favourable terms?

If you are offered a renewed contract on less favourable terms than the original contract, you can refuse to accept it. You can then try to negotiate with your employer. If they will not change the terms, you will need to choose between accepting the amended contract or treating the contract as being at an end. If the contract does end, you may be able to claim unfair dismissal.

• Unfair dismissal

Where to get help

For more information on where to get help with employment issues visit the employment contacts page. You may also be able to get support and advice from your trade union.

• Employment contacts

• Joining a trade union

Useful contacts

• Acas (Advisory, Conciliation and Arbitration Service)

• Citizens Advice Bureau

• Jobcentre Plus

• businesslink.gov.uk Opens new window

• More useful contacts