As a recruiter, I’m often asked, “What is a fixed-term contract, and is it right for me?” A fixed-term contract (FTC), sometimes called an FTC contract, is an employment agreement with a set end date or linked to a specific project. Whether you’re hiring or job-seeking, understanding how fixed-term contracts work – including your rights, notice periods and what happens when they end – is essential.
In this guide, I’ll explain the meaning of a fixed-term contract, its advantages and disadvantages, and share when I’ve seen them work best in my years placing PA, EA and administrative professionals.
What is a Fixed-Term Contract?
A fixed-term contract (FTC) is an employment agreement that lasts for a specific period, ending either on a set date or when a particular task or project is completed. Unlike a permanent contract, it has a clearly defined end point from the start.
In the UK, fixed-term employees are entitled to the same pay, benefits, and working conditions as comparable permanent staff, thanks to the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002. This means you should receive the same treatment on matters such as:
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Holiday entitlement
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Pension contributions
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Training opportunities
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Access to internal vacancies
Fixed-term contracts can run for any length of time – from a few months to several years – and may be renewed or extended if the employer’s needs continue. In my role as a recruiter, I often see them used for roles covering maternity leave, supporting time-limited projects, or providing specialist skills during peak periods.
It’s important to understand that while these contracts end automatically, your employment rights don’t disappear during that time. The notice period, renewal options, and any potential for the role to become permanent should all be clearly outlined in your written statement or employment contract before you start.
Common Scenarios for Fixed-Term Contracts
Fixed-term contracts are used in many situations where a business needs skills or support for a set period without making a permanent hire.
They work particularly well when:
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Covering maternity, paternity or long-term sickness – for example, bringing in a skilled PA while the permanent employee is away, perhaps on a 12-month fixed term contract.
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Handling seasonal or peak periods – such as additional administrative staff during year-end reporting or busy event seasons.
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Completing a specific project or event – like supporting an office relocation, system implementation, or high-profile company event.
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Accessing specialist skills – for example, hiring an experienced EA with niche industry knowledge to meet a temporary but important business need.
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Trialling a role or candidate – allowing employers to assess cultural fit and performance before committing to a permanent post.
These arrangements give both employers and employees flexibility. Candidates may value the chance to gain experience in a new industry or organisation, while employers can respond quickly to short-term demands without the obligations of a long-term contract.
How Fixed-Term Contracts Work in the UK
When you accept a fixed-term employment contract in the UK, the terms should be set out in a written statement or employment contract before you start.
This should clearly state:
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Start and end date (or the event that will end the contract)
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Job title, duties and reporting line
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Pay and benefits (which must match those of a comparable permanent employee)
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Notice period for both parties
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Any renewal or extension terms
Duration and Renewal
A fixed-term contract can last any length of time – weeks, months, or years – depending on the employer’s needs. If you’re wondering how long is a fixed term contract, the answer is that there’s no legal minimum or maximum (although after four years of continuous service with the same employer, you’re usually entitled to become a permanent employee unless the employer can provide objective justification for keeping you on a fixed-term basis).
Early Termination
If either party wishes to end the contract before the agreed date, the notice period in your contract applies. Where no notice period is stated, statutory minimums usually apply – for example, one week’s notice after one month’s continuous service.
This statutory notice increases with length of continuous employment — for instance, two weeks after two years’ service, three weeks after three years, and so on, up to a maximum of 12 weeks.
Continuous Service and Benefits
Time spent on a fixed-term contract counts towards your continuous service. This matters for rights such as redundancy pay, unfair dismissal protection, and statutory notice periods..
Clarity at the start avoids misunderstandings later. Make sure both parties know the contract’s end date, what will happen if the role continues beyond it, and whether there’s a possibility of it becoming a permanent post.
Employee Rights on Fixed-Term Contracts
In the UK, fixed-term contract employees are protected by the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002. This legislation ensures you have the same statutory rights as a comparable permanent employee doing the same or a similar job.
Equal Pay and Benefits
You’re entitled to the same pay rate, holiday allowance, and benefits as permanent staff. This includes access to training, internal vacancies, and other workplace perks. Employers cannot offer less favourable treatment simply because your contract is fixed-term, except where the employer can provide a justified objective reason. Rights can also be reinforced by collective agreements between an employer’s organisation and a trade union.
You have the same protections whether hired directly or via a staffing agency.
It’s worth noting that some benefit schemes, such as bonuses or long-service awards, may have eligibility criteria linked to length of continuous employment or permanent status, which could mean fixed-term employees do not qualify for them.
Redundancy and Dismissal Protection
If your contract runs for two years or more, you have the same redundancy rights and protection from unfair dismissal as permanent staff. The employer must follow a fair dismissal procedure and give proper notice before ending the contract early.
Access to Permanent Roles
You have the right to be informed about permanent employment opportunities within the organisation. Many FTCs are a stepping stone to permanent work – something I often see in the PA, EA, and administrative recruitment market.
Continuous Service
Time on a fixed-term contract counts towards continuous service. This can affect your entitlement to longer notice periods, enhanced redundancy pay, and other rights. After four years’ continuous employment on successive contracts with the same employer, you’re generally entitled to permanent status unless the employer can show an objective justification for extending the arrangement.
If you believe you’re being treated less favourably without a legitimate business reason, you can request a written explanation from your employer and, if necessary, seek advice from ACAS or an employment tribunal.
Ending or Leaving a Fixed-Term Contract
One of the defining features of a fixed-term contract is that it ends automatically on the agreed end date or when the specified project or event finishes. However, there are rules around how that ending happens.
When the Contract Ends Naturally
If your contract expires on the agreed date and isn’t renewed, your employer should give you reasonable notification, ideally in writing, so you can plan your next steps. In UK law, the non-renewal of a fixed-term contract counts as a dismissal, so the same rules around notice and redundancy pay may apply, depending on your continuous service.
Can You Leave a Fixed-Term Contract Early?
You can usually leave a fixed-term contract early, but you’ll need to give the notice period stated in your agreement. If there’s no contractual clause, statutory minimums apply, which is typically one week’s notice after a month’s continuous service. Some employers may require a longer notice period depending on the role’s responsibilities.
What Happens When a Fixed-Term Contract Ends?
If an employer ends a contract early without the agreed proper notice, you may be entitled to compensation for the remainder of the term, unless there’s a legitimate objective such as gross misconduct or a clear contractual clause allowing early termination.
Advantages and Disadvantages of Fixed-Term Contracts
Like any employment arrangement, fixed-term contracts have their strengths and drawbacks. Understanding both sides can help you decide if they’re right for your needs.
Advantages for Employers
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Flexibility – bring in talent for a specific task, peak period, or specialist role without a long-term commitment.
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Cost control – align staffing costs with project timelines or budget constraints.
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Quick access to skills – hire experienced professionals to meet an immediate business need.
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Trial period – assess whether a role or candidate is the right fit before offering a permanent post.
Advantages for Employees
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Variety of experience – work in different industries or company cultures.
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Skill building – gain exposure to new systems, teams, and responsibilities.
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Potential pathway to permanence – many FTCs lead to permanent employment opportunities.
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Defined timeframe – plan career moves around a known contract term.
Disadvantages for Employers
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Less job security for the worker – may affect retention and engagement.
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Onboarding costs – investment in training someone who might not stay long-term.
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Risk of claims – mishandling renewals or terminations can lead to unfair dismissal or less favourable treatment claims.
Disadvantages for Employees
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Limited job security – no guarantee of renewal or conversion to permanent status.
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Future uncertainty – harder to plan financially or personally beyond the contract’s end date.
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Possible gaps in benefits – while benefits must match those of permanent staff, some extras (e.g. bonus schemes) might have eligibility criteria tied to length of service.
When Fixed-Term Contracts Work Best
In my years recruiting PAs, EAs and administrative professionals, I’ve seen fixed-term contracts work brilliantly in certain situations. They’re ideal when there’s a clear start and end point, and both sides understand exactly what’s expected.
For employers, FTCs can be a smart choice when you need high-calibre support for a specific event, project launch, or to cover long-term sickness. The best outcomes happen when the role is well-defined, the onboarding process is efficient, and the employee is fully integrated into the team from day one.
For candidates, I’ve seen FTCs open doors to exciting opportunities they may not have considered otherwise. Some have led directly to permanent employment because they proved themselves invaluable during the contract. Others used FTCs to gain exposure to new industries or refine skills that boosted their long-term career prospects.
Should You Choose a Fixed-Term Contract?
If you’re considering a fixed-term contract – whether you’re hiring or taking on a new role – make sure the terms are clear from the start. Understand your rights and think about how it fits into your long-term plans.
For more on how fixed-term contracts compare to temporary roles, read our guide on temporary vs fixed-term contracts.
At Oriel Partners, we specialise in matching exceptional PAs, EAs and administrative professionals with the right opportunities, whether permanent, temporary or fixed-term. If you’d like tailored advice or help finding the perfect fit, get in touch with us.
