Fixed Term/Temporary Contracts Guidance - August 2026

4. Differences Between a Fixed Term Contract and Temporary Contract

A fixed term contract will be issued to an employee when the end date or length of the contract is known. The contract must clearly state the reason for the fixed-term status to establish those specific elements of the role which could attract a redundancy payment, or whether the role is to provide cover, backfill etc.

A temporary contract will be issued to an employee when the end date or length of the contract is unknown, however, the contract will indicate the anticipated length of the contract. The contract should also state the reason for the temporary status.

When on a temporary or fixed term contract for the following reasons the employee will be eligible to a redundancy payment, where s/he has two or more continuous years’ service:

• Completion of a specific task, such as project work that is dependent on external funding, and the post will end once the funding ceases or no further funding can be found.

• The completion of a specific task which is then completed.

• The employee is recruited to provide additional staffing, and the provision of services reduces or ceases.

In such cases, the reason for dismissal will be redundancy.

Examples of when a fixed term or temporary contract will be issued to employees where the reason for the dismissal will be for “some other substantial reason”:

• Cover for adoption/maternity/parental leave

• Cover for secondment of substantive post holder.

• Cover for a vacancy whilst recruitment process is undertaken (only for approved vacancies)

• Cover for long-term absence e.g. sickness

In such cases, the employee is not normally eligible to receive a redundancy payment. Temporary or fixed term contracts should only be used for approved vacancies; these contracts should not be used to cover for a post which is awaiting approval/funding.

Fixed term/temporary contracts should not be used to create a ‘trial period’ in order to evaluate the applicant’s suitability for the post. Heads of Service and Managers should manage poor/unacceptable performance in line with the Capability or Disciplinary Policy and Procedures. In particular and where applicable, effective use should also be made of the employee’s probation period as detailed within the Managing Probationary Employees Policy and Procedure.