A fixed term contract is basically one which is due to expire on a date specified in the contract. However, inevitably questions can arise as to whether a particular contract is a "fixed term contract". Thus for example a contract is a "fixed term contract" if it is for a stated maximum period. However, it is not "for a fixed term" if it only fixes a minimum duration.

Expert legal advice should be obtained in any case of difficulty.

The importance of the matter is that apart from statutory provision in ERA 1996 s.95 the ending of a fixed term contract (or any other limited term contract) without renewal would not be a dismissal and therefore rights such as unfair dismissal rights would not be available (see notes at Fixed term contracts/rights on expiry of/general rule ).

Rules under which a fixed term employee could agree to waive unfair dismissal rights on expiry of the fixed term were repealed on 25th October 1999 and the rump of those rules which allowed him to waive the right to statutory redundancy pay in those circumstances were repealed with effect from 1st October 2002 (see notes at Fixed term contracts/opt-out agreements ).

See generally notes at Fixed term contracts/2002 regulations .