Fixed-Term Contract
A fixed-term contract is employment for a specific period that ends automatically on a predetermined date or when a specific task is completed.
Fixed-term contracts are employment agreements with a defined end date or completion point. They're commonly used for maternity cover, seasonal work, specific projects, or to cover temporary increases in workload.
Employees on fixed-term contracts have the same rights as permanent employees, including protection from unfair dismissal and redundancy pay (after qualifying periods). They shouldn't be treated less favourably than comparable permanent staff.
After four years of continuous fixed-term contracts, employees automatically become permanent unless the employer can objectively justify continued fixed-term status. This prevents employers from using rolling fixed-term contracts to avoid permanent employment obligations.
Key Points
- Has a specified end date or completion trigger
- Same employment rights as permanent employees
- Protection against less favourable treatment
- Automatic permanent status after 4 years of continuous service
- Common for project work, cover, and seasonal roles
Frequently Asked Questions
Can a fixed-term contract be ended early?
Only if there's a clause allowing early termination. Otherwise, ending early may be a breach of contract. Check your contract for notice period requirements.
Am I entitled to redundancy pay on a fixed-term contract?
Yes, if you have 2+ years' continuous service and the contract isn't renewed due to reduced need for the work. Non-renewal for redundancy reasons triggers redundancy rights.