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Indefinite Employment or Fixed Terms

When you know that you are only going to need an employee for a finite period, employment can be offered on a fixed term basis.

A fixed term employment contract must state the commencement date and either the duration of the term or the expiry date. However it may still be a fixed term contract even if it provides for an earlier termination date.

Termination of employment at the end of the fixed period will constitute a dismissal for unfair dismissal and redundancy purposes. An employee needs two years of continuous service to claim a statutory redundancy payment and, in most cases, to claim unfair dismissal; from 1 January 2027, six months of continuous service is enough for unfair dismissal 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.

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