Rule · FTE Regs 2002 / ERA s.136

Fixed-term contracts and redundancy

If your fixed-term contract is not renewed and the reason is redundancy (the role has gone, not just the contract has expired), you have the same statutory redundancy rights as a permanent employee, provided you meet the 2-year continuous service rule.

Non-renewal counts as dismissal

The legal anchor is ERA 1996 s.136(1)(b): the expiry of a fixed-term contract without renewal is a dismissal in law. If the underlying reason for non-renewal is redundancy (the work has reduced or ceased), the same statutory formula in s.162 applies.

Continuous service across rolling fixed-terms

Short gaps (typically under 4 weeks) between consecutive fixed-term contracts preserve continuous service under ERA 1996 s.212. A series of 6-month rolling contracts with the same employer can therefore aggregate to the 2-year qualifying period.

Waiver clauses are unenforceable

Before 1 October 2002, fixed-term contracts often included a clause where the employee "waived" statutory redundancy on expiry. The FTE Regs 2002 made all such waivers unenforceable. ACAS guidance: fixed-term contracts.