Fixed-term contracts are increasingly common across the UK employment market, especially in industries that rely on project-based work, seasonal fluctuations, apprenticeships, or maternity cover. Whether you're an employer or jobseeker, understanding what a fixed-term contract is, how it works, and what rights come with it is essential.
What Is a Fixed-Term Contract?
A fixed-term contract is an employment agreement set to end on a specific date, when a particular project finishes, or when a defined event occurs. These contracts still provide a formal employment relationship, even though they are temporary.
Fixed-term contracts are commonly used for roles such as:
- Maternity or long-term sick leave cover
- Seasonal work
- Apprenticeships and training roles
- Funding-dependent or grant-based positions
- Specific projects with a clear end point
Fixed-Term Employee Rights in the UK
Many assume fixed-term contract workers have fewer rights than permanent staff, but UK law states otherwise. According to GOV.UK, fixed-term employees must receive:
- The same pay and working conditions as permanent colleagues
- An equivalent benefits package
- Access to information about permanent vacancies
- Protection against redundancy or unfair dismissal
- Statutory rights after meeting qualifying periods
Anyone who has worked for the same employer continuously for two years is entitled to the same redundancy rights as a permanent employee.
What Legally Counts as a Fixed-Term Contract?
A contract is legally classed as fixed-term if it:
- Has a clearly stated end date
- Ends upon completion of a specific task
- Ends when a particular event occurs, such as the return of an employee on leave
Under UK law, fixed-term employees are still considered employees and therefore benefit from full statutory protections around dismissal, redundancy, discrimination, and equal treatment.
Renewing or Ending a Fixed-Term Contract
Renewals
If a fixed-term contract is extended repeatedly, employers must ensure they are not unintentionally creating a permanent role. Rolling contracts without review can expose employers to legal risks, including claims relating to unfair dismissal or unequal treatment.
Ending the Contract
Even though a fixed-term contract ends automatically, the non-renewal may still count as a dismissal under employment law. Employers must show a fair reason and follow appropriate procedures once statutory thresholds are met.
Fixed-Term vs Permanent Contracts: Key Differences
Understanding how fixed-term contracts compare with permanent roles helps employers and workers make well-informed decisions.
Permanent Contracts
- No predetermined end date
- Highest level of job security
- Full statutory employment rights
- Eligibility for redundancy pay and unfair dismissal protection after meeting qualifying periods
Fixed-Term Contracts
- Ends on a specific date or when a task is completed
- Same statutory rights as permanent employees unless an objective justification exists for differences
- Often used for temporary or project-based staffing needs
Advantages of Fixed-Term Contracts
For Employers
- Short-term flexibility
- Suitable for project or deadline-driven roles
- Cost-effective during periods of fluctuating workload
For Employees
- Variety of experience across multiple sectors
- Often higher pay for short-term or specialist roles
- Greater flexibility for those exploring different career paths
2026 Employment Law Changes Impacting Fixed-Term Workers
With the Employment Rights Act 2025 being implemented throughout 2026 and 2027, several major updates strengthen protections for all employees, including those on fixed-term contracts.
Key updates effective in 2026 include:
- Statutory Sick Pay (SSP) will be payable from day one, removing the previous three-day waiting period.
- Removal of the Lower Earnings Limit, making more workers eligible for SSP.
- Day-one rights to paternity leave and unpaid parental leave.
These changes benefit fixed-term employees by improving access to essential workplace rights and protections.
Is a Fixed-Term Contract Right for You?
Fixed-term contracts are ideal if you:
- Want variety in your career
- Are seeking experience in new industries
- Prefer project-based work
- Need flexibility in your working life
At SERT, we view fixed-term positions as a powerful route into long-term careers, especially within training and skilled sectors where hands-on experience is key.
Looking for Fixed-Term Talent or Opportunities?
SERT specialises in employment, training and workforce development, helping:
- Employers find skilled fixed-term employees
- Jobseekers secure roles that offer real experience and progression