Fixed-term contracts in the public sector

A fixed-term contract ends on a set date, or when a task is finished or an event happens, such as a colleague returning from maternity leave. In law you must not be treated less favourably than a comparable permanent employee just because you are fixed-term. If successive fixed-term contracts give you four years or more of continuous service, you normally become permanent unless the employer can justify keeping you fixed-term.

Why the public sector uses them

Public sector employers use fixed-term contracts for maternity and long-term sickness cover, projects with time-limited funding, grant-funded posts and roles created while a restructure settles. Schools use them for maternity cover and for posts tied to pupil numbers. NHS trusts use them for project and transformation roles, councils for grant-funded services, and Civil Service departments for specific programmes and some apprenticeships.

The advert should say the post is fixed-term and give the end date or reason. If it does not, ask before you accept.

Equal treatment

The Fixed-term Employees Regulations say you must not be treated less favourably than a comparable permanent employee doing broadly similar work for the same employer, unless the employer can objectively justify it. That covers pay, holiday, sick pay, pension, training and access to benefits.

In the public sector you will usually be on the same pay scale and terms as permanent staff: Agenda for Change in the NHS, the NJC Green Book in councils, teachers’ pay and conditions in maintained schools, and departmental terms in the Civil Service. You join the same pension scheme, and your annual leave and occupational sick pay build up with service in the same way.

You also have the right to be told about permanent vacancies at your employer. Employers often advertise internally first, and fixed-term staff must be able to see and apply for those jobs. The internal vs external vacancies guide explains how internal adverts work.

Renewals and the four-year rule

There is no limit on how many times a fixed-term contract can be renewed. After four years or more on successive fixed-term contracts with the same employer, you automatically become a permanent employee unless the employer can show a good business reason for keeping you fixed-term. A collective agreement can change the four-year period.

Continuous service matters here. Gaps between contracts can break continuity, though short gaps, such as school holidays between academic-year contracts, often do not. NHS and local government terms have their own rules on counting service across employers. The continuous service guide covers how it is worked out.

When the contract ends

In law, a fixed-term contract that ends without renewal counts as a dismissal. That gives you some of the same protections as other employees.

• With two years’ continuous service, if the contract ends because the work has ended or reduced, you are usually entitled to statutory redundancy pay. For redundancies on or after 6 April 2026, a week’s pay is capped at £751 and the statutory maximum is £22,530. Public sector schemes may pay more.
• With the required service, you may be able to claim unfair dismissal if the employer had no fair reason not to renew or followed an unfair process. That currently usually needs two years’ service. Under the Employment Rights Act 2025, the qualifying period is due to fall to six months for dismissals from 1 January 2027.
• Some dismissals are automatically unfair from day one, such as a non-renewal because you are pregnant.

Employers are expected to consider you for suitable alternative work, especially in organisations as large as an NHS trust or council, and many have redeployment policies. The redundancy rights guide explains the process.

Notice

Your contract should say whether either side can end it early and how much notice is needed. If it does not, the statutory minimum applies: at least one week from the employer after a month’s service, rising with years of service, and at least one week from you. A contract that simply runs to its end date needs no separate notice, though good employers confirm the end date in writing in advance.

Teachers on fixed-term contracts in maintained schools in England and Wales usually follow the Burgundy Book resignation dates: notice by 31 October to leave on 31 December, by the end of February to leave on 30 April, or by 31 May to leave on 31 August. Academies often follow the same pattern.

Getting advice

If you think your fixed-term status is being used to treat you worse, or your contracts should have become permanent, raise it with HR in writing first. A union representative can help, and ACAS gives free advice. Since 1 October 2026 the time limit for most employment tribunal claims is six months. The fixed-term employee rights guide covers the legal detail.