How do I end a fixed term contract?

So, you employed someone on a fixed term contract and that end date is now approaching, you haven’t thought about how the contract ends, should you follow a process, write them a letter, how does it work?


When ending a fixed term contract, you should follow the basic principles in the Acas code of practice on disciplinary and grievance procedures:


  1. Invite the employee to a meeting to discuss the intended non-renewal.
  2. Hold the meeting to discuss this.
  3. Issue a letter confirming the reasons for termination and provide an opportunity to appeal.


What happens if you take no action at the end of the fixed term contract?

If you take no action and continue to employee the individual, it is likely that they will be deemed to have become a permanent employee. Should you wish to terminate the now permanent contract, a reasonable notice period will be implied, taking into account the nature of the work, seniority and statutory minimum notice periods.


What if you need to end the fixed term contract before the end date you confirmed?

If you have an early termination clause in the contract this should be straightforward to end the contract following the procedure above and giving the appropriate notice.


If, however, there is no provision in the contract for early termination, it will amount to breach of contract if you terminate before the expiry date and the employee will be able to seek damages equivalent to the unexpired portion of the fixed term.



Always check in with a HR professional on the specifics of your case before taking action. If you need support schedule a call with me today on 📲 01905 900080.



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