University of Salford
GUIDANCE NOTES ON THE OPERATION OF FIXED-TERM
CONTRACTS
1. What is a fixed-term contract?
The expression "fixed-term" refers to an employment contract that terminates on the expiry of a
specific term, or on completion of a specific task (e.g., the installation and testing of a new
computer system), or on the occurrence or non-occurrence of a specific event (e.g., a
permanent employee's return to work after maternity leave or the cancellation of an expected
order). Under the Fixed Term Employees Regulations (see 3 below) the automatic termination
and non-renewal of a fixed-term or "task-related contract" is treated in law as a dismissal,
giving the employee in question the right (subject to specific age and service qualifications) to
challenge the fairness of that dismissal and to be provided (on request) with a written
statement explaining the reasons for that dismissal.
2. Use of Fixed-Term Contracts
a) The University has made extensive use of fixed term contracts in the past. However, recent
changes in employment legislation have had a major impact on the use of fixed term contracts.
As a consequence the University is committed to scrutinise the rationale for utilising fixed term
contracts to ensure that in each case there is a bona fide reason for an appointment being
made on a fixed term basis or an objective justification for continuing on a fixed term basis.
b) In the majority of cases the rationale for making an appointment fixed term is due to the finite
nature of the job and/or the funding linked to the job. However, in cases where it may be
relatively easy to redeploy someone to another post elsewhere in the University e.g. a clerical,
secretarial or junior administrative post, particularly those of a generalist nature, managers are
urged to consider the appropriateness of making the appointment permanent at the outset. In
the event that the job is discontinued, the post holder can be considered for redeployment to
another post in accordance with the University’s Code of Practice for the Redeployment of
Staff. In addition, managers should be aware that making an appointment fixed-term where it is
not necessary may result in a limited field of suitable applicants.
c) Because of the legal complexities of using fixed term contracts managers are advised to liaise
with their link Personnel Manager in respect of creating a new fixed term contract, extending an
existing fixed term contract or in respect of an intention not to renew a fixed term contract.
3. The Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations
(2002)
These regulations came into force on 1 October 2002. They implement the European
Framework Directive on fixed term work.
There are two main areas covered by the Regulations. The first relates to less favourable
treatment. The second relates to the use of successive fixed term contracts.
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4. Prevention of Less Favourable Treatment
The rules on less favourable treatment introduced a new type of discrimination liability for the
University. The Regulations provide that a fixed-term employee has the right not to be treated
less favourably than a comparable permanent employee on the grounds that he/she is a fixed
term employee in relation to any term of his/her contract or by being subjected to any other
detriment by the University unless this treatment can be objectively justified.
5. The successive use of fixed term contracts
a) The Fixed Term Employees Regulations stipulate that employees employed before 1 October
2002 can only be employed on fixed term contracts for a maximum period of four years.
(Service before 10 July 2002 does not count towards the four-year limit.)
b) There is no time limit on the first fixed term contract for a new employee appointed on or after 1
October 2002. (E.g. an employee appointed on or after 1 October 2002 can be offered a fixed
term contract of five or six years duration.) However, if an employee is offered a fixed term
contract on or after 1 October 2002, any extension of employment beyond a four-year period
should be on a permanent basis unless there is an objective justification for continuing the fixed
term contract.
c) If an employee is appointed to a fixed term contract on or after 1 October 2002 of less than four
years duration, extension(s) can be offered as long as the extensions do not take the total
duration of employment on a fixed term contract to more than four years. (E.g. an employee
appointed at 1 January 2003 on a one year fixed term contract to 31 December 2003 could
have three x one-year extensions to 31 December 2006. If it is decided to extend employment
beyond that date then he/she must be offered permanency from 1 January 2007 unless there is
an objective justification for not doing so.)
d) Accordingly it is imperative that managers give careful consideration at the outset to whether a
post should be fixed term and consider the appropriateness of transfer to permanency on each
and every occasion that the Personnel Division sends a reminder about a forthcoming contract
end date.
d) The University is committed to ensuring that employees who have three+ years’ continuous
service at the University are considered for permanency before they acquire four years service.
To this end the University has an agreed procedure for considering Contract Research Staff for
permanency. This procedure includes a Workplace Agreement that allows contract research
staff to continue on fixed term contracts beyond four years where it is demonstrated there is an
objective justification for this. This agreement is subject to an annual review and an overall
maximum period of eight years on a fixed term contract.
Although there is no formal procedure in respect of other groups of employees, the University
wishes to comply with the spirit of the regulations and ensure that employees do not remain on
fixed-term contracts indefinitely.
6. The legal implications of ending a fixed term contract
It is important to note that the expiry of a fixed-term contract without renewal is a dismissal but
not a reason for dismissal. In order for a dismissal to be fair the University must be able to
show that the reason for the dismissal was one of the five potentially fair reasons listed below.
a) a reason relating to the capability or qualification of the employee for performing work of a kind
for which he/she was employed by the employer to do;
b) a reason relating to the conduct of the employee;
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c) that the employee was redundant;
d) that the employee could not continue to work in the position which he/she held without
contravention (either on his/her part or that of his/her employer) of a duty or restriction imposed
by or under an enactment;
e) some other substantial reason of a kind such as to justify the dismissal of an employee holding
the position which the employee held.
It is likely that there will be an increasing amount of judicial guidance on this point when fixedterm unfair dismissal claims reach employment tribunals and the higher courts.
7. Ending of a Fixed-Term Contract – Procedural Steps Required
It is essential that managers adhere to the following structured approach when considering the
non renewal of fixed-term contracts. If an employee is dismissed without the University
following this procedure the dismissal will automatically be ruled unfair. Therefore it is essential
that managers liaise with their link Personnel Manager about a proposed non renewal of a fixed
term contract, after which the following procedural steps (outlined in 8. 9 and 10 below) must
be followed.
8. Ending a fixed term contract of an employee with 12 months’ or more continuous service
The Personnel Division sends out reminders about the forthcoming end of fixed term contracts
approximately 4 months prior to the expiry dates of fixed term contracts. Schools/Divisions
should aim to take a decision on the renewal or non-renewal of a fixed-term contract (and notify
the Personnel Division accordingly) four months before the contract end date or, where this is
not possible, at the earliest possible juncture thereafter.
a) The line manager of the fixed-term contract employee should write to the employee and explain
the reason(s) for the proposed non-renewal of the contract and invite him/her to a meeting to
discuss the matter. (see attached template letter)
Possible reasons for non-renewal of the contract may include:

the requirement for specialist knowledge/expertise ceases to exist

end of a need for staff absence cover

end of a secondment/career development opportunity

changing business requirements

where there is no foreseeable prospect of securing further funding.
b) The line manager of the fixed-term contract employee should hold a meeting (with the Link
Personnel Manager in attendance if required), at which the employee has the right to be
accompanied by a trade union representative or a work colleague. At the meeting the line
manager will explain his/her intentions and reasons for the proposed non-renewal of the
contract and establish whether the employee is interested in exploring the scope for
redeployment. (see 9 below) Following the meeting the manager should confirm the decision
taken in writing to the employee, and send a copy to the Link Personnel Manager. Where the
decision is not to renew the fixed term contract the employee must be advised of his/her right
to appeal against the decision within 10 working days of receipt of the letter. (see attached
template letter)
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c) An employee who wishes to appeal against a decision not to renew his/her fixed-term contract
must do so in writing to the manager who made that decision. The letter must specify the
grounds of the appeal and a copy must be sent to the Link Personnel Manager. The employee
is then entitled to present his/her case, accompanied by his/her representative (see paragraph
8b), to a more senior manager not previously involved in the case.A representative of the
Personnel Division will also be present to advise the person appointed to hear the appeal.
The appeal hearing will normally be convened within 20 working days from receipt of the letter
of appeal. Wherever possible, the appeal will be heard prior to the expiry date of the fixed term
contract. Having heard the evidence, the manager appointed to hear the appeal shall have
delegated authority to accept, amend or reject the original decision. The employee and his/her
representative shall be notified of the decision in writing by the manager who heard the appeal,
with a copy of the letter sent to the link Personnel Manager. (See attached template letter)
9. Redeployment
If an employee has expressed an interest in redeployment, (see 8b and the University’s Code
of Practice for the Redeployment of Staff) the line manager must inform the link Personnel
Manager.
The Personnel Division will write to the employee confirming that his/her employment with the
University will end on the expiry date of his/her fixed-term contract unless he/she has
expressed an interest in being considered for redeployment and an offer of redeployment has
been obtained prior to the expiry date of the fixed term contract. Attempts to secure
redeployment will not continue beyond the expiry date of the fixed-term contract.
10. Ending a fixed term contract of an employee with less than 12 months’ continuous
service
a) Schools/Divisions should aim to take a decision on the renewal or proposed non-renewal of a
fixed term contract (and notify the Personnel Division accordingly) at the point when the
Personnel Division sends the reminder. (See 8 above) The line manager of the fixed-term
contract employee should arrange an interview with him/her and his/her representative to
explain the manager’s intentions and reasons for the proposed non-renewal of the fixed term
contract. The same procedure as detailed in 8 above should be followed. However, employees
with less than 12 months’ continuous service do not have an entitlement to be considered for
redeployment or a right of appeal against a decision not to renew a fixed term contract.
Possible reasons for the non-renewal of the fixed term contract may include:

the requirement for specialist knowledge/expertise ceases to exist

end of a need for staff absence cover

end of a secondment/career development opportunity

changing business requirements

where there is no foreseeable prospect of securing further funding.
b) The line manager confirms the outcome of the interview between him/her and the fixed-term
contract employee in writing, including the reasons for non-renewal as stated in the interview,
with a copy sent to the link Personnel Manager (see attached template letter).
The employee will be sent a letter by the Personnel Division confirming that his/her employment
with the University will end on expiry date of his/her fixed term contract.
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It is important to note that any issues which arise in relation to conduct or capability need
to be properly considered during the fixed-term contract itself and dealt with under the
appropriate procedures. It is not acceptable to deal with these issues simply by waiting for
the end of the fixed-term contract.
Updated September 06
--------------------------------------------------------------------------------------------------------------------------------Ref: Fixed Term Contracts – Guidance/ 13.09.06/ Personnel
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1.
Template letter - invitation to attend a meeting to discuss proposed non-renewal
Ref:
Date
Name and Address
Dear
Re: Proposed Non-Renewal of Fixed-Term Contract of Employment
You are invited to attend a meeting on …(date)… at …(time)…in … (venue)…to discuss the
proposed non-renewal of your contract of employment, which is due to expire
on…………………..
At the present time the indications are that University will be unable to renew your contract of
employment because……………. (Please state reasons – see guidance notes on the operation
of fixed-term contracts).
You are advised that you have the right to be accompanied by a work colleague or a trade union
representative.
If you have any queries please do not hesitate to contact me on ext ……….
Yours sincerely
cc:
Personnel Link Manager
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2.
Template letter - decision of manager - for staff with more than 12 months service
Ref:
Date
Name and Address
Dear
Re: Non-Renewal of Fixed-Term Contract of Employment
Further to our meeting on ……….., I write to confirm that your fixed-term appointment as
…………… in the School/Faculty/Division will expire on…………. The University is unable to
renew your contract of employment because……………. (Please state reasons – see guidance
notes on the operation of fixed-term contracts).
You are advised that you have the right to appeal against this decision. If you wish to exercise
this right you should write to me within ten working days of receipt of this letter setting out the
grounds of your appeal.
I have notified your Link Personnel Manager of your interest in redeployment. Redeployment
opportunities will be sought in accordance with the Code of Practice for the Redeployment of
Staff. Your employment with the University will terminate on ……………. unless you are
successfully redeployed prior to the expiry of your fixed term contract.
Or
I note from our meeting that you do not wish to explore the possibility of redeployment
I should like to take this opportunity of thanking you for your service to the University and of
wishing you well for the future.
If you have any queries please do not hesitate to contact me on ext ……….
Yours sincerely
cc:
Personnel Link Manager
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3.
Template letter - decision of manager - for staff with less than 12 months service
Ref:
Date
Name and Address
Dear
Re: Non-Renewal of Fixed-Term Contract
Further to our meeting on ……….., I write to confirm that your fixed-term appointment as
…………… in the School/Faculty/Division will expire on…………. The University is unable to
renew your contract because……………. (Please state reasons – see guidance notes on the
operation of fixed-term contracts).
I should like to take this opportunity of thanking you for your service to the University and of
wishing you well for the future.
If you have any queries please do not hesitate to contact me on ext ……….
Yours sincerely
cc:
Personnel Link Manager
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4.
Invitation to attend an appeal hearing
Ref:
Date
Name and Address
Dear
Appeal Hearing
I am writing to notify you that your appeal against the decision not to renew your fixed term
contract will be heard on … (date)… at … (time) … in… (venue)… Your appeal will be heard by
………….
You are entitled to be accompanied at this meeting by a work colleague or a trade union
representative.
Please let me have a copy of any documentation you wish to be considered at the appeal by
……………
Yours sincerely
cc:
Personnel Link Manager
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