Employment Contract Template for Fixed-Term Employees (UK 2025)

When You Need This Contract

Fixed-term employment contracts must comply with the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002, which give fixed-term employees the right to equal treatment with comparable permanent employees. The contract must specify the end date or the completing event that triggers termination, address early termination provisions, and include awareness that four or more years of continuous fixed-term employment automatically converts to permanent status. Objective justification is needed if you want to maintain fixed-term status beyond four years.

Key Clauses

• Clear end date or completing event definition
• Early termination provisions with notice requirements for both parties
• Equal treatment with comparable permanent employees
• Four-year automatic permanence conversion awareness
• Renewal provisions and process for extension

What to Watch Out For

• Not including an early termination clause, meaning neither party can end the contract before the fixed term expires
• Ignoring the four-year rule that automatically converts successive fixed-term contracts to permanent employment

Sample Clauses

• Sample fixed-term clause: 'Your employment is for a fixed term commencing [date] and ending [date], unless terminated earlier in accordance with this agreement. The Company may extend this contract by mutual written agreement. You should be aware that under the Fixed-term Employees Regulations 2002, continuous employment on fixed-term contracts for four or more years may result in your employment becoming permanent.'
• Sample early termination clause: 'Either party may terminate this contract before the end of the fixed term by giving [X] weeks written notice. The Company may, at its discretion, make a payment in lieu of notice.'