Fixed Term Employment Contract

Statutory Sick Pay (SSP) is now payable from the first full day of sickness absence. This contract has been updated to reflect this change.

This Fixed Term Employment Contract is designed for a wide range of roles where an employee is engaged for a defined period or until a particular end date.

The matching offer letter is the Fixed Term Employment Offer Letter.

Use this contract to set out fixed-term terms clearly and compliantly

Employers must provide workers and employees with a written statement of their main terms and conditions of employment, often known as a Standard Form Section One Statement.

This contract covers those requirements and must be provided to the employee or worker by day one of employment.

Key legal points for fixed-term engagements

Fixed term employees have the same minimum rights as permanent workers and are protected by the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002. Any clause or agreement which purports to waive rights regarding unfair dismissal or redundancy is void.

This contract includes a clause which entitles the employer to end the fixed term contract early while avoiding a potential claim for damages equivalent to the pay and benefits the fixed term worker would have received up to the time the contract was due to terminate.

Fixed term contracts end automatically when they reach the agreed end date. However, if the contract is not renewed, this is considered a dismissal and an employee with at least two years’ service may be able to bring an unfair dismissal claim. For the dismissal to be fair, it will need to be for one of the potentially fair reasons:

• capability;
• misconduct;
• redundancy;
• statutory bar; or
• some other substantial reason (SOSR).

If the contract is not renewed because the company needs fewer employees to do work of a particular kind or because the company is closing down, redundancy is likely to apply. See the Redundancy Documents.

If the employee is replacing an employee who is absent on, for example, maternity or sick leave and the dismissal is to allow that person to return to work, SOSR is likely to apply. See the Some Other Substantial Reason (SOSR) Dismissals.

What does this fixed-term employment contract cover?

The contract includes provisions on the practical and legal essentials for a fixed-term hire, including:

• the fixed term and when it ends;
• duties and job title;
• start date and continuity of employment;
• hours and place of work, including working outside the UK;
• remuneration and benefits;
• holidays and other paid leave;
• training and sickness absence;
• maternity and paternity rights, pension and non-compulsory retirement;
• mobility;
• grievance and disciplinary procedures;
• staff handbook and employment policies;
• confidentiality and data protection; and
• changes to terms and conditions, severability, governing law and the right to work in the UK.

What this fixed-term contract does not include

This Employment Contract does not contain restraint of trade, restrictions on employment or intellectual property clauses. For contract or agreement precedents containing these types of clauses, see the Executive Employment Contract or the relevant document in the Directors' Service Contracts section.

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