{"id":1902,"date":"2022-01-18T01:08:27","date_gmt":"2022-01-18T01:08:27","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1902"},"modified":"2024-05-07T05:27:51","modified_gmt":"2024-05-07T04:27:51","slug":"fixed-term-contract","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/fixed-term-contract\/","title":{"rendered":"What is a Fixed-Term Employment Contract?"},"content":{"rendered":"<p><span style=\"font-weight: 400\">As an employer, you may wish your employees to work for you for a set period only. For example, this can be useful if you require them for a specific project, cover extra business, or work where other employees are absent. Employing your staff on an employment contract for a set period can offer you flexibility as well as reassurance regarding the length of time your employee is with you. Where an employee is working for you for a fixed time, they may be on a fixed-term contract.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">This article will explain what a fixed-term contract is and what might not be classed as a fixed-term contract. It will also explain how to end and renew fixed-term contracts. It is essential to be aware of the rules about fixed-term contracts, as if you end them incorrectly, an employee could claim <a href=\"https:\/\/legalvision.co.uk\/employment\/casual-worker-unfair-dismissal\/\">unfair dismissal<\/a> against you.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">What is a Fixed-Term Contract?<\/span><\/h2>\n<p><span style=\"font-weight: 400\">A fixed-term contract is where an employee has an employment contract directly with your business, which states when the contract ends. This could be by:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">specifying a date the contract ends;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">stating that the contract ends when a particular task is finished; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">identifying the occurrence of an event or failure for an event to occur.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">An employee with this type of contract is a fixed-term employee. This can include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">those carrying out work as maternity cover;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/employment\/employment-statuses\/\">casual or seasonal employees<\/a> employed for a busy period for a duration of up to six months; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">an employee who is a specialist working on a specific project.<\/span><\/li>\n<\/ul>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">Importantly, fixed-term employees have the same rights as permanent employees. So, you and your business should treat these workers equally to permanent employees. This can include, for example, equal pay and contractual benefits such as a pension.<\/span><\/p>\n<\/div>\n<h2><span style=\"font-weight: 400\">Contracts Which Are Not Fixed-Term Contracts<\/span><\/h2>\n<p><span style=\"font-weight: 400\">You should be careful not to mistake some employment contracts for fixed-term contracts where they are not. For example, the following employment contracts may appear initially as fixed-term contracts, but they are not:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">an \u2018evergreen contract\u2019 which means renewal is automatic after each fixed-term, or instead, you can serve notice; and<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a contract where notice may not be served during a fixed period, but the contract is considered open-ended after this.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">The following also indicate that a person carrying out a role is not doing so as a fixed-term employee:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">their employment contract is with an agency rather than you;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the person is on work experience placement;<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a \u2018contract of apprenticeship\u2019 is in place; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the person belongs to the armed forces.<\/span><\/li>\n<\/ul>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n 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Instead, the employment contract automatically comes to an end. Therefore, if you wish to end your employee\u2019s fixed-term contract earlier than the specified end time of the contract, you should only do so if there is mention of this within the employment contract. Where there is not, you are in breach of the contract.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Additionally, if you do end the contract early, you must give the required notice. Otherwise, you could <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/avoid-breaching-a-contract\/\">breach the contract<\/a>. If the contract does not specify the amount of notice necessary, you must give the legal requirement, which is:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">one week for those who have worked for less than one month; or<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">where your employee has worked for you for at least two years, one week\u2019s notice per year they have worked for you.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Further, if your employee wishes to end their fixed-term contract early, they must give you one week\u2019s notice unless the contract states longer. This is the case where they have worked for you for at least one month.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Renewing Fixed-Term Contracts\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400\">As an employer, you have the option to renew your employee\u2019s fixed-term contract. However, if you decide to offer less favourable terms, your employee may negotiate the terms with you. Where there is no agreement, and the contract is, therefore, not renewed, your employee has the right to pursue a claim for unfair dismissal.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Once you have renewed your employee\u2019s fixed-term contract for at least four years, the fixed-term employee becomes a permanent employee. However, if you have a good business reason to refuse permanent employee status, you may do so. <\/span><span style=\"font-weight: 400\">Likewise, where the fixed-term contract initially lasted for four years and is then renewed after this period, the employee automatically becomes a permanent employee. A fixed-term employee can also become a permanent employee where you have extended the contract.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Indeed, you may decide not to renew your employee\u2019s fixed-term contract. However, if your employee has worked for you for two years or more, you must have a fair reason for deciding to terminate the contract. Otherwise, a court could consider this to be an unfair dismissal.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Further, it may be the case that you do not formally <a href=\"https:\/\/legalvision.co.uk\/employment\/fixed-term-agreements\/\">renew your employee\u2019s fixed-term contract<\/a>, but they continue to work for you. In this instance, there will be an implied agreement in place. Therefore, if you later dismiss this employee, you must still give them the required notice period.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Fixed-term contracts can be beneficial for you as an employer and likely a type of employment contract you will use at some stage. First, however, you should understand the rules regarding this type of employment ocntract. For example, you should abide by the rules about renewing or ending a fixed-term contract. Otherwise, your fixed-term employee may have a case for unfair dismissal. Also, you must treat your employees on fixed-term contracts equally to your permanent employees. They have the same rights, so they should not be discriminated against.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">If you need help understanding fixed-term contracts in England and Wales, our <\/span><a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\"><span style=\"font-weight: 400\">experienced employment lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1642467772915\"><strong class=\"schema-faq-question\"><strong>What is a fixed-term contract?<\/strong><\/strong> <p class=\"schema-faq-answer\">A fixed-term contract is a direct employment contract with you as the employer. It either specifies an end date of employment or the employment comes to an end after a project has finished. It could also end because an event happens or fails to occur.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1642467784019\"><strong class=\"schema-faq-question\"><strong>Can I renew a fixed-term contract?<\/strong><\/strong> <p class=\"schema-faq-answer\">You can renew a fixed-term contract once it reaches an end. You can do this formally or informally by implied agreement. This is where the employee continues to work for you after the expiry of their fixed-term.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"4d339a24e7\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1902\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/fixed-term-contract\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What is a Fixed-Term Employment Contract?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As an employer, you may wish your employees to work for you for a set period only. For example, this can be useful if you require them for a specific project, cover extra business, or work where other employees are absent. Employing your staff on an employment contract for a set period can offer you<a href=\"https:\/\/legalvision.co.uk\/employment\/fixed-term-contract\/\">Continue reading <span class=\"sr-only\">&#8220;What is a Fixed-Term Employment Contract?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":574,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1379,892,2235,1179,2268,1015","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,21,229,334,410],"class_list":["post-1902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-medium-business","tag-unfair-dismissal","tag-employment-contract","tag-fixed-term-contract"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is a Fixed-Term Employment Contract? | LegalVision UK<\/title>\n<meta name=\"description\" content=\"A fixed-term contract specifies an end date of employment. 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