Fixed-Term Contracts and Maternity Rights: A Practical HR Guide

This newsletter explains two important HR areas in simple terms so managers can easily follow them:

  • How to end a fixed-term contract under upcoming legal changes (Post-2027)
  • Maternity protection rules during redundancy situations

Both topics carry legal risk if handled incorrectly, so this guide sets out the steps clearly. If you need help with any live case or situation, please contact us here at Spectrum HR Solutions.

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

1. Initial Review (4–8 weeks before end date)

  • 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; if non-renewal may be unfair

2. 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

3. Check Length of Service

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

4. 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 Legislation fairness requirement.

5. Hold Consultation Meeting

Discuss openly:

  • Reason for contract ending
  • Confirm no ongoing requirement (or explain situation)
  • Employee questions and response
  • Explore alternatives:
    • Redeployment opportunities
    • Extensions (if applicable)

Not considering alternative roles is a common tribunal risk

6. Consider Alternatives

  • Check for:
    • Suitable alternative roles
    • Internal vacancies
  • Document:
    • What was considered
    • Why roles were/weren’t suitable

✔ Particularly important in redundancy scenarios

7. Decision Stage

  • Confirm:
    • Fair reason still applies
    • Process has been followed
  • Ensure:
    • Decision is reasonable
    • Evidence is documented

8. 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
  • Include all  holiday accrued but untaken details to be paid
  • What company property needs to be returned and when

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

9. Appeal Process

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

✔ Required for procedural fairness under Legislation fairness requirement

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

Summary

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

Maternity Protection from Redundancy

All at risk individuals should be given the opportunity to apply for all new permanent roles in any restructured organization.

Pregnant employees and those on maternity leave are legally protected from redundancy, with priority for suitable alternative roles and extended protection up to 18 months from childbirth.

Key Legal Protections

Pregnant employees and new parents benefit from special redundancy protections under UK law, including the Employment Rights Act 1996, the Equality Act 2010, and the Maternity and Parental Leave Regulations 1999.

These protections ensure that:

  • Selection for redundancy cannot be based on pregnancy, maternity leave, or related family leave.
  • Employees must be offered suitable alternative roles if available, before other employees at risk of redundancy.
  • Redundancy during maternity leave is not automatically prohibited, but must be a genuine redundancy situation and handled fairly.

Redundancy Protected Period

From 6 April 2024, the redundancy protected period was extended. The duration depends on the type of leave:

Pregnancy and maternity leave:

Protection starts when the employee notifies the employer of pregnancy and continues until 18 months from the expected week of childbirth or the actual date of birth.

Miscarriage or stillbirth: If a miscarriage occurs before 24 weeks, protection ends two weeks after the pregnancy ends. If a stillbirth occurs after 24 weeks, protection lasts 18 months from the birth.

Adoption leave: Protection starts on the first day of adoption leave and lasts 18 months from the placement or arrival of the child.

Shared parental leave: Protection applies if more than six consecutive weeks are taken, lasting 18 months from the date of childbirth.

Rights During the Protected Period

While within the protected period, employees are entitled to:

Priority for suitable alternative vacancies if their role is at risk of redundancy.

  • Redundancy pay and notice pay if no suitable alternative roles exist, in line with statutory or contractual entitlements.
  • Continuation of Statutory Maternity Pay (SMP) or Maternity Allowance if redundancy occurs during maternity leave.
  • Protection from unlawful discrimination or automatically unfair dismissal related to pregnancy or maternity leave. 

Employer Obligations

Employers must:

  • Conduct a fair and objective redundancy process, documenting decisions to avoid claims of discrimination or unfair dismissal.
  • Maintain effective communication with employees on maternity leave, including consultation about redundancy and alternative roles.
  • Ensure compliance with Equality Act 2010 and relevant maternity and parental leave regulations.

Summary & Useful Links

Maternity protection from redundancy ensures that pregnant employees and those on maternity or related family leave are safeguarded from unfair dismissal, given priority for alternative roles, and can claim redundancy pay if no suitable positions exist. These protections extend beyond the maternity leave itself, covering up to 18 months from childbirth or adoption, and apply to genuine redundancy situations handled fairly and objectively.

Maternity Action Website 

Redundancy protection for pregnancy and new parents

Handling Redundancy During Pregnancy and Maternity

Redundancy during pregnancy, maternity and parental leave

For support or guidance, please contact Spectrum HR Solutions.

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