Fixed-term contracts are usually for well under two years, meaning that the recent two-year protection from unfair dismissal has generally been enough to cover the termination of such contracts.
However, from 1st Jan 2027, unfair dismissal protection is set to be reduced to only six months. Although they are normally for a period less than two years, fixed-term contracts are often for longer than six months, which means there is going to be far more risk of unfair dismissal claims for any employer who uses them. If you do, then extra care will need to be taken in future.
Even though by its nature a fixed-term contract should have a natural end, it still counts as a dismissal and has the potential to be unfair. Therefore, you must always ensure you have a potentially fair reason for the dismissal and follow a fair process.
There are certain essential steps that must now be taken whenever a fixed term contract is issued AND before it comes to an end. As a consequence, expert advice has never been more important!