Fixed Term Contracts

From 6 December 2023 employers will no longer be able to employ an employee on a fixed term contract for more than 2 years (including any extensions or renewals) except in certain circumstances.

There are also the following limitations and changes:

·         fixed term contracts must not have an option to extend or renew the contract more than two years or to extend or renew the contract more than once;

·         limitations on when an employee cannot be offered consecutive fixed term contracts;

·         employers will be required to provide employees with a Fixed Term Information Statement.

These changes apply to new contracts entered into after 6 December 2023. If your fixed term contract does not meet the rules, then the specified end date will be invalid, which means that the contract will no longer come to an end at that end date. Although this will not affect the validity of the other terms of the contract, civil penalties may apply where the new rules are breached.

Next steps

Given such changes, employers should review current fixed term employment contracts to ensure that such documents comply with the changes.

If you require assistance in reviewing your fixed term employment contracts please contact Hart & Co today.