Fixed-Term Employment Contract (England & Wales)
This Fixed-Term Employment Contract (the “Contract”) is entered into on [Contract Date] between:
[Employer Name], with its registered or principal address at [Employer Address], [Employer City], [Employer Postcode], England and Wales (hereinafter the “Employer”); and
[Employee Name], of [Employee Address], [Employee City], [Employee Postcode] (hereinafter the “Employee”).
Together referred to as the “Parties”.
1. EMPLOYMENT PARTICULARS
1.1 Job title. The Employee is engaged as [Job Title]. The Employee’s main duties and responsibilities are: [Job Description]. The Employer may, on reasonable notice, assign the Employee to other duties consistent with their skills and experience.
1.2 Place of work. The Employee will normally carry out their duties at [Work Location]. The Employer may require the Employee to work at other locations as operational requirements demand, subject to giving reasonable notice.
1.3 Commencement. The Employee’s employment under this Contract commences on [Start Date].
1.4 Continuous employment. For the purposes of section 1(4)(b) of the Employment Rights Act 1996, the Employee’s period of continuous employment with the Employer began on [Continuous Employment Date].
2. FIXED TERM
2.1 This Contract is for a fixed term commencing on [Start Date] and expiring on [End Date] (the “Expiry Date”), unless terminated earlier in accordance with clause 7 of this Contract.
2.2 The objective justification for the fixed term is: [Fixed Term Reason]. The Employer and Employee acknowledge that this constitutes an objective reason for the fixed term within the meaning of the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002.
2.3 This Contract will expire automatically on the Expiry Date without further notice from either Party. The expiry of a fixed-term contract is a dismissal for the purposes of Part X of the Employment Rights Act 1996. The Employee will be entitled to their accrued statutory rights on expiry, including any entitlement to a statutory redundancy payment if the reason for non-renewal is redundancy.
2.4 If the Employee has been continuously employed by the Employer under this or any previous fixed-term contract for four or more years and the fixed-term has not been justified by objective reasons, the Employee may apply under regulation 8 of the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 to have their employment treated as permanent.
3. SALARY
3.1 The Employee will be paid [Salary Amount], subject to deductions for income tax and National Insurance contributions in accordance with applicable legislation.
3.2 Salary will be paid [Pay Frequency] in arrears into the Employee’s nominated bank account, together with a payslip itemising gross pay, deductions, and net pay.
3.3 The Employer will review the Employee’s salary annually, but is not obliged to increase it. Any salary increase will be confirmed in writing.
4. WORKING HOURS
4.1 The Employee’s normal working hours are [Working Hours]. The Employee may be required to work additional hours as reasonably necessary to fulfil the requirements of the role, without additional payment unless otherwise agreed in writing.
4.2 Under the Working Time Regulations 1998, the Employee’s average weekly working time must not exceed 48 hours over a 17-week reference period, unless the Employee signs a voluntary written opt-out agreement.
5. HOLIDAY ENTITLEMENT
5.1 The Employee’s annual holiday entitlement is [Holiday Entitlement]. This entitlement is pro-rated in respect of any incomplete holiday year during the term of this Contract.
5.2 The holiday year runs from [Holiday Year].
5.3 The Employee must obtain the Employer’s prior written approval before taking annual leave. Holiday should be taken during the holiday year in which it is accrued and may not be carried forward to the following holiday year except where the Employee has been unable to take it due to sickness or statutory leave.
5.4 On termination or expiry of this Contract, the Employee will receive payment in lieu of any accrued but untaken statutory holiday entitlement. Any holiday taken in excess of the accrued entitlement will be subject to a deduction from the Employee’s final payment.
6. NOTICE
6.1 Subject to clause 7, either Party may terminate this Contract before the Expiry Date by giving written notice as follows:
- The Employer must give the Employee not less than [Employer Notice Period] written notice.
- The Employee must give the Employer not less than [Employee Notice Period] written notice.
6.2 These notice periods are in addition to and do not limit any statutory minimum notice requirements under section 86 of the Employment Rights Act 1996.
6.3 The Employer may, at its discretion, require the Employee to serve all or part of their notice period on garden leave on full pay and benefits, or may make a payment in lieu of notice in respect of the whole or any unexpired part of the notice period.
7. SUMMARY TERMINATION
7.1 The Employer may terminate this Contract immediately and without notice or payment in lieu in the event of gross misconduct or any other serious breach by the Employee of their obligations under this Contract.
7.2 The following are examples of conduct that may constitute gross misconduct and lead to summary dismissal: theft, fraud, dishonesty, serious breach of health and safety rules, acts of violence or harassment, and serious breaches of the Employer’s policies.
7.3 Any dismissal before the Expiry Date will be subject to the Employer’s disciplinary procedure, except in cases of gross misconduct.
8. SICKNESS AND SICK PAY
8.1 If the Employee is unable to attend work due to sickness or injury, they must notify the Employer or their line manager as soon as reasonably practicable and before the start of their working day.
8.2 The Employee’s entitlement to sick pay is: [Sick Pay Provision].
8.3 For absences of seven consecutive calendar days or fewer, self-certification is sufficient. For longer absences, the Employee must provide a fit note from their GP or other registered medical practitioner.
9. WORKPLACE PENSION
9.1 The Employer will automatically enrol the Employee into the workplace pension scheme operated by [Pension Scheme] if the Employee satisfies the eligibility criteria under the Pensions Act 2008.
9.2 The Employee has the right to opt out of the pension scheme within one month of enrolment. If the Employee opts out, the Employer will re-enrol them approximately every three years.
10. GENERAL PROVISIONS
10.1 Statutory rights. Nothing in this Contract limits or excludes any right the Employee has under UK employment law, including rights under the Employment Rights Act 1996, the Equality Act 2010, the Working Time Regulations 1998, the National Minimum Wage Act 1998, and the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002.
10.2 Data protection. The Employer will process the Employee’s personal data in accordance with the UK GDPR and the Data Protection Act 2018. The Employee is directed to the Employer’s Employee Privacy Notice for full details.
10.3 Entire agreement. This Contract constitutes the entire agreement between the Parties in relation to the Employee’s employment and supersedes all prior discussions, representations, and agreements.
10.4 Variation. Any variation to this Contract must be agreed in writing and signed by both Parties.
10.5 Third party rights. A person who is not a party to this Contract has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.
10.6 Governing law. This Contract and any dispute or claim arising out of or in connection with it shall be governed by and construed in accordance with the laws of [Governing Law], and the Parties submit to the exclusive jurisdiction of the courts of England and Wales.
IN WITNESS WHEREOF, the Parties have signed this Fixed-Term Employment Contract as of the date first written above.
THE EMPLOYER
Name: [Employer Name]
Address: [Employer Address], [Employer City], [Employer Postcode]
THE EMPLOYEE
Name: [Employee Name]
Address: [Employee Address], [Employee City], [Employee Postcode]
Employer (Authorised Signatory)
________________
Signature
Date: ________________
Employee
________________
Signature
Date: ________________
What Is a Fixed-Term Employment Contract (England & Wales)?
A Fixed-Term Employment Contract in the United Kingdom sets the job duties, pay, hours, leave, and notice terms that bind employer and employee, and is governed by the Employment Rights Act 1996.
The principal statute governing fixed-term employment in England and Wales is the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 (“the FTE Regulations”), which were enacted to implement the EU Framework Agreement on Fixed-Term Work. Although the UK has left the European Union, the FTE Regulations remain in force. They provide that a fixed-term employee has the right not to be treated less favourably than a comparable permanent employee, unless the difference in treatment is objectively justified.
The Employment Rights Act 1996 also applies to fixed-term employees. Under section 1 of the ERA, every employee must receive a written statement of employment particulars on or before their first day of work. For fixed-term contracts, this statement must include the expected duration of the contract or, where the contract is for a fixed term, the date on which it is to expire. The expiry of a fixed-term contract constitutes a dismissal for the purposes of Part X of the ERA, which means that an employee who has the qualifying length of service may bring an unfair dismissal claim if the contract is not renewed and they believe the non-renewal was unfair.
The ERA also contains the four-year rule, codified in regulation 8 of the FTE Regulations. Under this rule, an employee who has been engaged on successive fixed-term contracts for four or more years becomes a permanent employee automatically by operation of law, unless the employer can demonstrate an objective justification for continuing the fixed-term arrangement. This is one of the most important and most frequently misunderstood aspects of fixed-term employment law in England and Wales. Employers who simply renew fixed-term contracts every year without consideration of this rule risk inadvertently creating permanent employment relationships.
Fixed-term employees are also entitled to the same rights as permanent employees in relation to pension auto-enrolment under the Pensions Act 2008, working time protections under the Working Time Regulations 1998, and protection from unlawful discrimination under the Equality Act 2010. Statutory Sick Pay, Statutory Maternity Pay, and other statutory payments are also available to fixed-term employees who meet the relevant qualifying conditions.
The legal framework governing the Fixed-Term Employment Contract (England & Wales) in United Kingdom draws on several key statutes and regulatory bodies. Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. The Advisory, Conciliation and Arbitration Service (ACAS) provides early conciliation under Section 18A of the Employment Tribunals Act 1996. The UK GDPR and Data Protection Act 2018 govern personal data handling. HM Revenue and Customs (HMRC) administers PAYE and National Insurance contributions under the Income Tax (Earnings and Pensions) Act 2003. Parties executing a Fixed-Term Employment Contract (England & Wales) in United Kingdom should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Employment Rights Act 1996 sets the foundational requirements.
When Do You Need a Fixed-Term Employment Contract (England & Wales)?
A fixed-term employment contract is the correct document when there is a genuine and objectively justified reason why the employment relationship will come to an end on a specific date or on the occurrence of a specific event. There are three classically recognised forms of objective justification under the FTE Regulations: the contract is for a specific task, the contract is for a fixed duration, or the contract covers a specific event such as the maternity leave of a permanent employee.
The most common situations in which a fixed-term contract is needed in England and Wales are as follows. First, maternity cover: when a permanent employee goes on maternity, paternity, adoption, or shared parental leave, a fixed-term contract is the standard way to engage a temporary replacement. The contract will typically specify that it runs until the permanent employee returns, or for a defined maximum period. Second, project work: when additional staff are needed for a specific project that has a defined start and end date, such as a construction project, an IT implementation, or a research programme. Third, grant-funded roles: in academia, charities, and the public sector, fixed-term contracts are frequently used where the role is funded by a grant or external funding that has a limited duration. Fourth, seasonal work: where work is genuinely seasonal and predictable, such as summer holiday camps or winter retail, a fixed-term contract with a defined end date is more appropriate than a zero hours contract if the hours are regular and guaranteed during the season.
A fixed-term contract is not appropriate when the real reason for the fixed term is simply that the employer wants to avoid giving the employee unfair dismissal rights. The courts and Employment Tribunals scrutinise the objective justification for the fixed term and will treat a fixed-term employee as permanent if the justification is inadequate. Using a series of short fixed-term contracts to avoid employment rights is an increasingly risky strategy, particularly in light of the Employment Rights Bill 2024-25 which is expected to strengthen workers’ rights further.
If the employment is genuinely indefinite but part-time, a part-time employment contract is the correct document. If the engagement is genuinely not employment at all, a freelance contract or consulting agreement should be used instead.
What to Include in Your Fixed-Term Employment Contract (England & Wales)
A legally compliant fixed-term employment contract for England and Wales must contain all the information required by section 1 of the Employment Rights Act 1996, together with additional provisions required by the FTE Regulations and other applicable legislation. Understanding each element will help you produce a document that is both legally sound and practically effective.
The fixed term clause is the defining feature of the contract. It must specify the start date, the end date or the task or event upon completion of which the contract will expire, and the objective justification for the fixed term. The justification must be genuine and specific, not generic. Stating that the contract is fixed-term because the employer “prefers flexibility” is not an objective justification. Stating that it covers the maternity leave of a named or identifiable permanent employee is.
The objective justification clause is required to protect the employer from the four-year rule. Under regulation 8 of the FTE Regulations, if an employee is employed on successive fixed-term contracts for four or more years and there is no objective justification for the continuation of the fixed term, they become a permanent employee by operation of law. Recording the objective justification in the contract creates a contemporaneous written record that the employer can rely on if the justification is ever challenged.
The equal treatment statement confirms the employer’s obligation under regulation 3 of the FTE Regulations not to treat the fixed-term employee less favourably than a comparable permanent employee. The statement should also confirm the employee’s right to be informed of suitable permanent vacancies under regulation 3(6) of the FTE Regulations. This right gives fixed-term employees the opportunity to apply for permanent positions that arise during their fixed term.
The notice provisions must address two separate situations. First, what notice is required if either party wishes to terminate the contract early, before the expiry date? Second, what happens at the expiry date itself? The contract should make clear that the contract will expire automatically on the end date without further notice being required, but that early termination before the end date requires the notice specified in the contract (subject to the statutory minimums in section 86 of the ERA). For fixed-term contracts of one month or less, no statutory minimum notice period applies.
Pro-rata holiday entitlement is an important consideration. The employee accrues holiday entitlement under the Working Time Regulations 1998 from their first day of employment, at a rate of 5.6 weeks per year pro-rated in proportion to the length of their contract. The contract should specify the annual entitlement and explain how it will be pro-rated if the employee starts or finishes part way through the holiday year. Unused holiday at the end of the contract should be paid out.
The disciplinary and grievance procedure provisions are mandatory under section 3 of the Employment Act 2002 and the Employment Act 2002 (Dispute Resolution) Regulations 2004 (as superseded by the ACAS Code of Practice on Disciplinary and Grievance Procedures, which became the applicable standard following the Employment Act 2008). The contract must either set out the disciplinary and grievance procedure or refer the employee to a separate document.
Pension auto-enrolment applies to fixed-term employees in the same way as to permanent employees. If the employee earns above the earnings trigger and is between 22 and state pension age, the employer must automatically enrol them in a qualifying workplace pension scheme. The fact that the contract is for a short fixed term does not exempt the employer from this obligation.
Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. The Advisory, Conciliation and Arbitration Service (ACAS) provides early conciliation under Section 18A of the Employment Tribunals Act 1996. The UK GDPR and Data Protection Act 2018 govern personal data handling. HM Revenue and Customs (HMRC) administers PAYE and National Insurance contributions under the Income Tax (Earnings and Pensions) Act 2003. The forms-legal.com Fixed-Term Employment Contract (England & Wales) template covers the mandatory elements under Employment Rights Act 1996.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Fixed-Term Employment Contract (England & Wales) (United Kingdom) [Legal document template]. Forms Legal. https://forms-legal.com/uk/employment/contracts/uk-fixed-term-employment-contract
"Fixed-Term Employment Contract (England & Wales) (United Kingdom)." Forms Legal, 2026, https://forms-legal.com/uk/employment/contracts/uk-fixed-term-employment-contract.
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year = {2026},
howpublished = {\url{https://forms-legal.com/uk/employment/contracts/uk-fixed-term-employment-contract}},
note = {Free legal document template. Based on Employment Rights Act 1996}
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Frequently Asked Questions
Under regulation 8 of the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002, an employee who has been employed on successive fixed-term contracts with the same employer for four or more years becomes a permanent employee automatically by operation of law, unless the employer can demonstrate an objective justification for continuing the fixed-term arrangement. The employee can request a written statement from the employer confirming that their contract is now permanent. If the employer refuses, the employee can apply to an Employment Tribunal. The four-year period runs from 10 July 2002 (the date the Regulations came into force) or from the start of the employee’s employment, whichever is later. Under United Kingdom law, Employment Rights Act 1996, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
Yes, in most respects. The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 require employers to treat fixed-term employees no less favourably than comparable permanent employees on pro-rata terms, unless the difference in treatment is objectively justified. This covers pay, holiday entitlement, sick pay, pension, training, and access to permanent vacancies. Fixed-term employees also have all the same day-one statutory rights as permanent employees, including protection from unlawful discrimination under the Equality Act 2010, the right to statutory sick pay, and the right to Statutory Maternity or Paternity Pay. Under United Kingdom law, Employment Rights Act 1996, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
Yes. Under section 95(1)(b) of the Employment Rights Act 1996, the non-renewal of a fixed-term contract on expiry constitutes a dismissal. This means that an employee who has been continuously employed for two or more years may bring an unfair dismissal claim if they believe the non-renewal was unfair. If the reason for non-renewal is redundancy (because the job the employee was doing has ceased to exist), an employee with two or more years’ service is also entitled to a statutory redundancy payment. Employers should therefore follow a fair procedure when deciding not to renew a fixed-term contract. Under United Kingdom law, Employment Rights Act 1996, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
Yes, provided the contract contains an early termination clause specifying the notice required. Without an early termination clause, the employer is legally obliged to pay the employee their salary for the full remaining term of the contract if it terminates the contract early. An early termination clause allows either party to end the contract before the expiry date by giving the specified period of notice (which must be at least the statutory minimum under section 86 of the Employment Rights Act 1996). The employer may also have the right to make a payment in lieu of notice or to place the employee on garden leave during the notice period. Under United Kingdom law, Employment Rights Act 1996, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
Yes. Under regulation 3(6) of the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002, employers must inform fixed-term employees of suitable available vacancies within the organisation. This can be done by posting the information in a general written notice accessible to all fixed-term employees. The right is to be informed of vacancies, not to be guaranteed the role, but subjecting a fixed-term employee to a detriment for applying for a permanent role would be unlawful under the Regulations. Under United Kingdom law, Employment Rights Act 1996, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Employment Rights Act 1996, the Employment Tribunal adjudicates workplace disputes. Section 94 of the Employment Rights Act 1996 provides the right not to be unfairly dismissed. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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