Do I have to give notice when a fixed-term contract ends?

Not usually. It ends on the agreed date without notice. You should still tell the employee clearly, and in writing, whether it will be renewed.

Can an employee claim unfair dismissal if their fixed-term contract is not renewed?

Possibly. Non-renewal is a dismissal. Currently two years' service is generally required for an ordinary unfair dismissal claim; from 1 January 2027 it is six months. Discrimination and automatically unfair dismissal claims do not need a qualifying period.

When do the Employment Rights Act 2025 unfair dismissal changes start?

On 1 January 2027, for dismissals where the effective date of termination falls on or after that date.

Is there still a four-year limit on fixed-term contracts?

Yes. After four years' continuous fixed-term employment, the employee is treated as permanent unless the employer can objectively justify a further fixed term.

Fixed-term employment contracts

Jun 18, 2025

4 min read

Updated: 3 days ago

Fixed-term employment contracts Themis Crown Advocates

What happens when a fixed-term contract reaches its end date?

The contract ends on the date stated unless it says otherwise, for example through a break clause or renewal option. No notice is needed from either side for it to expire. For the basic definition of a fixed-term employee, see the government's guide to fixed-term employment contracts. Our earlier article on fixed-term employment contracts covers the basics.

Is not renewing a fixed-term contract a dismissal?

Yes. Under the Employment Rights Act 1996, the expiry of a fixed-term contract without renewal on the same terms is treated as a dismissal. Whether the employee can challenge it depends on their service and the reason for non-renewal.

Until 31 December 2026: an employee generally needs two years' continuous service to bring an ordinary unfair dismissal claim (a shorter period applies to some staff who started before 6 April 2012).
From 1 January 2027: the qualifying period falls to six months for dismissals where the effective date of termination is on or after that date. The cap on the compensatory award (currently the lower of 12 months' pay or £123,543) is removed, so a tribunal can award what it considers just and equitable for the loss suffered. This is confirmed in the commencement regulations, as explained by Forbes Solicitors and Lewis Silkin.
Not affected: protection from discrimination and from automatically unfair dismissal applies from day one.
The government has published a factsheet on unfair dismissal and a timeline update on the Employment Rights Act.

For employers, a six-month or one-year fixed-term contract will carry unfair dismissal exposure from 2027 when it is not renewed. You will need a fair reason (such as redundancy, conduct, capability or "some other substantial reason") and a fair process.

Can an employer end a fixed-term contract early?

Only if the contract allows it, or the employee agrees. Without a break clause, ending early can be a breach of contract. If there is a break clause, follow its notice terms and give at least statutory minimum notice: one week after one month's service, rising to one week per year of service after two years, up to 12 weeks.

What if the employee keeps working after the end date?

Carrying on without new paperwork can create an argument that the contract has continued or been extended on unclear terms. If you do not intend to renew, say so in writing before the end date. If you do, put the new terms in writing.

Is there a limit on renewing fixed-term contracts?

Yes. Under the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002, an employee continuously employed on successive fixed-term contracts for four years or more is treated as permanent unless the employer can objectively justify a further fixed term. Fixed-term staff must also not be treated less favourably than comparable permanent staff without objective justification.

What can employers do before 1 January 2027?

• Review every fixed-term contract due to expire in 2027 and note who will have more than six months' service.

• Decide the genuine reason for each non-renewal and record it.

• Update contract templates, including break clauses and renewal wording.

• Check no worker is on a rolling chain approaching four years without justification.

Our employer fees page sets out costs for employer-side advice.

What should an employee do if their fixed-term contract is not being renewed?

Ask for the reason in writing, check your length of service and contract terms, and keep a record of what you are told. Time limits for tribunal claims are short, and early conciliation through Acas is normally required first. See our employee fees page for costs, and our guide to your rights under a contract agreement.

Frequently asked questions

Do I have to give notice when a fixed-term contract ends? Not usually. It ends on the agreed date without notice. You should still tell the employee clearly, and in writing, whether it will be renewed.
Can an employee claim unfair dismissal if their fixed-term contract is not renewed? Possibly. Non-renewal is a dismissal. Currently two years' service is generally required for an ordinary unfair dismissal claim; from 1 January 2027 it is six months. Discrimination and automatically unfair dismissal claims do not need a qualifying period.
When do the Employment Rights Act 2025 unfair dismissal changes start? On 1 January 2027, for dismissals where the effective date of termination falls on or after that date.
Is there still a four-year limit on fixed-term contracts? Yes. After four years' continuous fixed-term employment, the employee is treated as permanent unless the employer can objectively justify a further fixed term.