Fixed-Term Contract Ending – HR Process Checklist (Post-2027)

As we approach upcoming changes and increased scrutiny around fixed-term contracts, it’s essential that HR teams follow a clear, fair, and well-documented process when contracts come to an end. Alongside this, employers should start rolling out changes now in response to the upcoming 2027 reforms to unfair dismissal rights, which will significantly impact how probation periods are managed. Below is a practical checklist and key reminders to help ensure compliance and reduce risk.

Probation Period Change – Rolling Out Now

From 1 January 2027, employees will gain unfair dismissal protection after six months’ service (instead of two years). Employers should begin amending their processes now to prepare for these changes, not waiting until 2027 when it will be too late.

Key reminders:

  • The new rule applies to employees in post when the law takes effect
  • Any employee with 6 months’ service by 1 January 2027 will be protected against unfair dismissal and constructive dismissal
  • In practice, dismissal decisions may need to be made by months 4–5 to account for notice periods.

What employers should be rolling out now:

  • Strengthen onboarding and induction to identify issues early
  • Increase performance review check-ins (e.g. months 1, 2, and 4) instead of waiting until the end of probation
  • Train and upskill managers to give clear, evidence-based, documented feedback including being very clear where the individual is  not meeting requirements of the role
  • Build documentation with an evidence trail,  from day one — every performance conversation should be recorded and clear action plan/expectations  shared after each meeting with the employee
  • Review probation periods (consider reducing to 3–4 months)
  • Update contracts and policies to reflect the new legislation
  • Improve hiring decisions/recruitment processes to reduce early-stage terminations
  • Prepare for increased tribunal risk and cost

✔ Key principle: probation is no longer a “low-risk” period — it must be actively managed from day one to protect your organisation.

Fixed-Term Contracts – HR Process Checklist

Alongside changes to probation and dismissal rights, it’s equally important to ensure fixed-term contracts are managed correctly. Ending a fixed-term contract is a dismissal in law, and where employees have sufficient service, a full and fair process must be followed. The checklist below provides a practical step-by-step guide.

Initial Review (4–8 weeks before end date of the fixed term contract)

Confirm:

  • Contract end date
  • Reason for fixed-term arrangement:
  • Maternity cover
  • Project-based work
  • External funding

Ask:

  • Is the role genuinely ending?
  • Is there ongoing work or funding?
  • If the role continues, evaluate;  non-renewal may be unfair

Identify the Fair Reason

Document clearly (this is critical evidence):

  • Redundancy
  • Funding ending
  • Project completion
  • SOSR (Some Other Substantial Reason)
  • Maternity leave cover ending

✔ Ensure the reason is:

  • Genuine
  • Evidence-based
  • Consistent with business reality

Check Length of Service

  • Under 6 months (from 2027)
    → Lower risk, but still follow basic procedure to ensure fairness
  • 6 months or more
    → Full unfair dismissal protection applies
    → Full process required to end the contract

Invite to a Meeting

Send written invite:

  • Explain contract is due to end
  • Outline potential dismissal (non-renewal)
  • State reason (e.g. funding ending, end of maternity leave)
  • Offer right to be accompanied

✔ This is a key ACAS fairness requirement

Hold Consultation Meeting

Discuss openly:

  • Reason for contract ending
  • Confirm no ongoing requirement
  • (or explain situation)
  • Employee questions and responses

Explore alternatives:

  • Redeployment opportunities
  • Extensions (if applicable)

⚠️ Not considering alternative roles is a common tribunal risk

Consider Alternatives

Check for:

  • Suitable alternative roles
  • Internal vacancies

Document:

  • What was considered
  • Why roles were/weren’t suitable

✔ Particularly important in redundancy scenarios

Decision Stage

Confirm:

  • Fair reason still applies
  • Process has been followed

Ensure:

  • Decision is reasonable
  • Evidence is documented

Outcome Letter

Provide written confirmation including:

  • Reason for dismissal (clear and specific)
  • Contract end date
  • Notice arrangements
  • Any redundancy pay (if applicable)
  • Right of appeal

⚠️ Avoid vague wording like “contract ended” — always state reasons why

Appeal Process

  • Offer right of appeal
  • Hold appeal meeting if requested
  • Confirm outcome in writing

✔ Required for procedural fairness under ACAS principles

Key Risk Areas to Watch

❌ Simply letting a contract “expire” with no process
❌ No consultation meeting
❌ No clear reason documented
❌ Ignoring redeployment opportunities
❌ Treating fixed-term staff less favourably

Practical HR Tip

For contracts likely to exceed 6 months, treat them from the start as:

“Employees who will need a full dismissal process”

This avoids last-minute risk and ensures:

  • Managers are prepared
  • Documentation is in place
  • Processes are consistent

If a fixed-term employee has 6+ months’ service, ending the contract = a dismissal requiring a fair reason + full process to dismiss.

📞 Need Help Navigating Fixed-Term Contracts?

For expert guidance, contact us today. Our team will help you stay compliant, reduce risk, and manage processes with confidence.

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