Fixed term contracts normally end when they reach the agreed end date.

Dismissal occurs if that term expires and the employment contract is not renewed. If the employee has two years’ continuous service, the employer must show there is a fair reason for not renewing the contract. From 1 January 2027, six months’ continuous service is enough where the employment ends on or after that date (or would have, if statutory minimum notice that was legally due had been given), even if notice was given before then. 

Employees may be entitled to statutory redundancy payments after two years if the reason for non-renewal is redundancy.

An employment contract can be considered a fixed term employment contract even if there is a provision for prior notice.

Where employers offer a fixed term employment contract, the dates and duration of that fixed term must be specified in the terms and conditions of employment.