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Fixed Term Employment Contract UK: Full Time Guide

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Part ofUK Employment Law Guide for Employers (2025)

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Hiring someone for a set period, rather than on a permanent basis, is a common arrangement in British workplaces. Whether you're covering parental leave, staffing a project with a defined end date, or bringing in extra hands during a busy spell, a full time fixed term contract gives both sides certainty about how long the role will last. For employers, it's a way to meet short-term staffing needs without committing to an indefinite hire. For employees, it sets out the pay, duties, hours and protections that apply during the engagement. On this page I'll walk through what a full time fixed term contract actually does, when it's the right tool for the job, the rights these employees hold, and the points most people overlook until the end date rolls around.

What this document is

A full time fixed term employment contract is a written agreement where someone is taken on for full time hours, but only for a defined period or until a specific event happens. That event might be the return of a colleague from leave, the completion of a project, or the closure of a seasonal operation.

The contract covers the same ground as a permanent one: job title, duties, place of work, working hours, salary, holiday entitlement, notice, confidentiality, and how either side can bring things to an end early. What sets it apart is the end date (or end trigger) built into the agreement.

In England, Wales and Scotland, these arrangements sit within the framework of the Employment Rights Act 1996 and the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002. Those rules matter because they shape what an employer can and can't do, both during the contract and when it runs out.

How to use this document

  1. Decide why a fixed term is appropriate. Be clear with yourself about why the role needs an end date. Is it cover for maternity or long-term sick leave? Is it tied to funding that runs out? Is it a project that genuinely has a finish line? Writing this reason down helps you draft the contract and defend the arrangement later if questioned.
  2. Set the end date or end trigger. Most fixed term contracts end on a specific calendar date. Others end when a task completes or a permanent employee returns. Either is valid, but the wording needs to be precise so there's no confusion later. Vague triggers cause disputes, particularly around final pay and holiday.
  3. Include all the statutory written particulars. Since April 2020, the written statement of main terms must be given on or before day one of employment. Pay, hours, holiday, notice, place of work, job description, probation, training obligations and benefits all need to appear in the document. Skipping this step exposes the employer to a tribunal claim.
  4. Address early termination. A common mistake is assuming a fixed term contract can't be ended early. It can, but only if the contract says so. Include a notice clause that allows either party to end the arrangement before the end date, and set out what happens in cases of gross misconduct or redundancy.
  5. Plan for the end of the term. As the end date approaches, decide whether to let the contract expire, extend it, or convert it to permanent. Non-renewal counts as a dismissal in law, so follow a fair process, give proper notice, and think about redundancy pay if the employee has enough service.

Common questions

If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Common questions

Q Is a fixed term contract the same as a permanent one?
Not quite. The working arrangements can look identical day to day, but a fixed term contract has a built-in end point, either a date or a triggering event. Permanent contracts continue until one side ends them with notice. Rights and protections are broadly the same, but the end-of-contract process differs significantly, particularly around non-renewal and redundancy.
Q Do fixed term employees get the same rights as permanent staff?
Yes, in most respects. The Fixed-term Employees Regulations 2002 prevent employers from treating fixed term staff less favourably than comparable permanent employees without objective justification. That covers pay, holiday, pension access, and benefits. There are narrow exceptions, but the starting point is parity, not a watered-down version of employment.
Q What happens if the contract isn't renewed at the end?
Non-renewal is treated as a dismissal in law, not a natural expiry. If the employee has two years or more of continuous service, they can potentially bring an unfair dismissal claim, and redundancy pay may apply if the role is genuinely no longer needed. Following a fair process and giving proper notice matters here.
Q Can a fixed term contract be ended early?
Only if the contract includes a notice clause allowing it. Without one, ending the contract before its agreed end date could amount to a breach, entitling the employee to damages covering the remainder of the term. Most well-drafted contracts include mutual notice provisions to avoid this risk.
Q What happens if a fixed term contract is repeatedly renewed?
If someone works on successive fixed term contracts for four years or more with the same employer, the law generally treats them as permanent from that point onward, unless the employer can objectively justify keeping them on a fixed term basis. This rule exists to stop indefinite stacking of short-term arrangements.
Q Is a written contract legally required?
A written statement of the main terms of employment must be provided on or before the first day of work, under the Employment Rights Act 1996. A full contract isn't strictly required, but in practice most employers issue one because it sets out matters a basic statement doesn't cover, like confidentiality, intellectual property, and post-employment restrictions.
Q Do fixed term employees accrue holiday and sick pay?
Yes. Statutory holiday entitlement applies pro rata based on the length of the contract, and statutory sick pay rules apply in the same way as for permanent staff. Any contractual enhancements offered to permanent employees, such as company sick pay or extra holiday, should also apply unless there's a proper objective reason for the difference.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.