Ending a fixed term contract
Where a fixed term contract will end at the stated expiry date without renewal, managers must act in good time to follow the correct procedure to bring the employment to an end. Depending on the employee's length of service and the reason for the fixed term contract, managers will follow either the Non Renewal of a Fixed Term Contract procedure or the Redundancy* procedure. Further guidance on which procedure to follow is included below.
Five months before the fixed term employee is due to receive notice, HR will email the manager to remind them that the contract is coming to an end and the steps they must follow. For reasons of fairness, HR will aim to provide 3 months' notice for all employees on fixed term contracts that are ending.
*Redundancy is defined in section 139(1) of the Employment Rights Act 1996 as applying to situations where dismissals are wholly or mainly due to the following reasons:
- The employer has ceased, or intends to cease, continuing the business; or
- The requirements for employees to perform work of a specific type, or to conduct it at the location in which they are employed, has ceased or diminished, or are expected to do so.
Where it has been decided to offer a fixed term contract, managers should be aware of their legal responsibilities for entering into the contract, and most importantly, for ensuring the correct process is followed to bring the contract to an end. There is a common perception that a fixed term contract will end on its stated expiry date without any further action being required on the part of the manager but this is incorrect and could potentially risk a claim of unfair dismissal being brought to the Employment Tribunal.
The expiry of a fixed term contract without renewal is treated as a dismissal in law. To ensure any dismissal is fair within the law, managers must follow a process which includes explaining to the employee why their role is ending, having a meeting at which they may be accompanied by a colleague or trade union representative and offering a right of appeal.
The correct ending procedure and process to be followed will be determined by a number of factors, including the business reason for the use of the fixed term contract, the duration of the fixed term contract, and the employee's length of service (continuous service) with the University at the end of the fixed term contract.
Guidance on the correct ending procedure to follow is included within the table below. We encourage managers to seek advice from the HR Advisor team if you are not clear on which procedure to follow.
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Reason for fixed term contract as stated in contract (business rules) |
Length of the FTC is 21 months or less: |
Length of the FTC is more than 21 months: |
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Cover arrangements (for example, parental leave, sickness absence, study leave, secondment backfill etc.) |
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Externally funded, time-limited research project where the prospect of continued funding is unlikely |
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Where the appointment requires specialist skills for a limited period to accomplish a particular task or project for a limited period |
Non-Renewal of Fixed-Term Contract Procedure in cases where the fixed term contract was to complete a specialist/specific project or task outside business as usual |
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Appointment to a clearly defined training or career development position (graduate trainees, apprentices, KTPs). |
Dependent on basis of appointment as specified in the Contract of Employment | |
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Appointments to cope with unexpected or unpredictable period of demand over a time-limited period |