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Situation · End of contract

Fixed-term contract not renewed

A fixed-term contract that ends without renewal is a dismissal in law. Whether you get statutory redundancy depends on two things: do you have 2 years' continuous service, and was the reason for non-renewal a redundancy reason?

The legal mechanic

ERA 1996 s.136(1)(b) deems expiry of a fixed-term contract without renewal to be a dismissal. The cause of dismissal determines whether it is a redundancy dismissal: did the role itself disappear, or did the funding end, or did the project conclude. If yes, the redundancy formula in s.162 applies in full.

Aggregating rolling contracts

A short gap (typically under 4 weeks) between two consecutive fixed-terms preserves continuous service under ERA 1996 s.212. So a series of 6-month or 12-month rolling contracts with the same employer can aggregate to 2 years and trigger statutory redundancy on non-renewal.

Unfair dismissal alongside redundancy

You can claim both. The unfair dismissal claim challenges whether the non-renewal was a fair redundancy (was a fair procedure followed, was a suitable pool considered, was redeployment offered). The redundancy pay claim seeks the statutory figure. Both routes are time-limited: 3 months for unfair dismissal, 6 months for statutory redundancy.

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Reviewed by Oliver Wakefield-Smith, Founder of Digital Signet. Last verified 23 June 2026. Inline citations link to primary statute at legislation.gov.uk.