CIPD | Fixed-term contracts: Guide for employers (2024)

FAQs

How long can a fixed-term contract last in the UK? ›

An employee can be kept on successive fixed-term contracts for a limit of four years. If your contract is renewed after that you become a permanent employee unless the employer can show a good reason why you should stay on a fixed-term contract.

A fixed term employee is a person employed for a determined period of time. A contract of employment for a determined period of time has an agreed date of termination, being either a specific calendar date or the occurrence of a specific event. Usually, a fixed term contract of employment can be for any period of time.

Fixed-term employees are employed under contracts that will: last for a set length of time (for example, one year) end when a specific task is completed (for example, when a project finishes) end when a specific event takes place (for example, funding runs out).

A fixed-term contract will usually expire automatically, at the end of the term or project, without the need for notice (although some fixed-term contracts also provide for early termination on notice before the expiry of the fixed term).

This is not to say that it is forbidden for an employer to ever roll over a fixed term contract. The employer can do this, say once or at the most twice. If the contract has to be rolled over more than that, then it is either plain bad management, or the position must be declared permanent.

Fixed-term contracts are defined by a set end date or the completion of a specific task, offering flexibility but often lacking long-term security. Permanent employment, on the other hand, does not have a predetermined end date, providing job security and opportunities for career progression, but with less flexibility.

For a contract to be valid and recognized by the common law, it must include certain elements-- offer, acceptance, consideration, intention to create legal relations, authority and capacity, and certainty. Without these elements, a contract is not legally binding and may not be enforced by the courts.

A contract is an agreement between parties, creating mutual obligations that are enforceable by law. The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality.

If an Employee Wants to Resign

You may provide your employer with reasonable notice and resign from this employment, even though you are ending a fixed-term contract. However, there are situations where resigning from a fixed-term contract can become complicated.

What is the notice period for a fixed-term contract? ›

Fixed-term contract notice period for employees

If you've worked for an employer for a period of one month or more, you must give at least one week's notice. However, the notice period for your fixed-term contract will depend on your contract terms (it may be longer than one week), so be sure to check this.

As a fixed-term employee, you can negotiate for more annual leave before you sign the contract. If your contract is for 12 months, negotiating an extra 10 days of annual leave would leave you more paid time at the end of the contract to find new employment and reduce the amount of time you won't have an income.

Fixed-term contracts: last for a certain length of time. are set in advance. end when a specific task is completed.

Many employees don't realise that, unless they have two years of continuous service with their employer, they do not have full employment rights. This 'qualifying period' has been in force since 2012 and applies to various areas of employment law, including unfair dismissal claims.

Yes, it is definitely possible. It can prove to be quite challenging for those looking to obtain a first time buyer mortgage. Luckily though, there are still plenty of lenders that we have on the panel who are willing to accept this type of contract for a mortgage.

Fixed Term Contract Salaries in United Kingdom

The average salary for Fixed Term Contract is £34,744 per year in the United Kingdom. The average additional cash compensation for a Fixed Term Contract in the United Kingdom is £4,087, with a range from £1,404 - £11,898.