Appointment Terminates at the End of a Fixed Term Contract

6.3.14 A fixed term employee whose contract is terminated on the expiry date on the grounds of redundancy may be entitled to compensation under the scheme. The expiry of a fixed term appointment is not automatically a dismissal on the grounds of redundancy and you should consider taking legal advice on this point. Where the termination is on the grounds of redundancy, Scheme Manager approval for making a payment is not required. You are also not required to follow the procedures set out in the Cabinet Office Protocol for handling surplus staff situations (2016 Protocol – Civil Service Redundancy Principles). In addition, the requirement to offer Voluntary Redundancy before making an employee compulsorily redundant does not apply where a fixed term appointment is terminated on its expiry date. As a matter of good practice you should advise the employee when nearing the end of their contract that it will not be extended.

6.3.15 As long as the fixed term employee has at least 2 years qualifying service and is being dismissed for redundancy, they will receive the same compulsory compensation terms as a permanent employee. You should notify the Scheme Administrator in the normal way asking for Compulsory Redundancy terms and giving a Scheme Reference number CR (name of employer e.g. DWP) FTAE (CR DWP FTAE). No compensation is payable for contracts under two years.

Published:
13 January 2022
Last updated:
13 January 2022