Fixed Term Employment Contract Template

This Fixed Term Employment Contract (Maternity and Sickness Cover) is designed for recruiting an employee on a temporary basis to cover another employee’s absence through maternity leave or sickness. It can be used for a variety of roles where cover is needed.

Use this contract to confirm temporary cover terms from day one

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

This contract covers the requirements of a Standard Form Section One Statement and must be provided to the employee or worker by day one of employment.

Key legal points for fixed-term cover arrangements

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. These regulations state that any clause which purports to waive rights regarding unfair dismissal or redundancy is void.

Although this is a temporary arrangement, the expiry of a fixed-term contract is still a dismissal from a legal point of view. Employers must therefore ensure they act reasonably when ending the contract. Generally, such a dismissal will be fair, but it is important that the expiry of the fixed-term is the real reason for the employee's dismissal.

In circumstances like these, where the fixed term contract is to cover a period of maternity or sick leave, dismissal for ‘some other substantial reason (SOSR)’ is likely to apply. See the SOSR suite of documents.

How the “fixed term” works for maternity and sickness cover

Although the contract is described as ‘fixed term’, it is slightly flexible. Employment starts on a fixed date (set out in clause 4) and continues until the employee being covered returns to work following the end of their maternity leave or sick leave.

Early termination option

The contract includes a clause which allows the employer to terminate the fixed term contract early, without facing 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 end.

Although it might seem inconsistent to agree a temporary term and also allow notice to terminate it before that period has passed, the early termination clause gives the employer an option to terminate the fixed-term contract early (for example, in the event of a downturn in business) without being in breach of contract. Without this clause, the employee is entitled to sue the employer for damages.

What the contract covers

In addition to provisions dealing with the duration of the contract, it contains the usual terms on sickness, holidays, remuneration, pensions and retirement. It also includes a probationary period (which can be deleted if not required).

Fixed Term Employment Contract Template is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.