Do You Get Redundancy on a Fixed Term Contract

As an employee on a fixed-term contract, it`s natural to question whether or not you are entitled to redundancy pay in the event that your contract is not renewed. Fortunately, there are guidelines in place to help determine the circumstances in which you may be entitled to redundancy pay.

Firstly, it`s important to understand what a fixed-term contract is. A fixed-term contract is a type of employment agreement that is set to expire on a specific date or upon the completion of a particular project. These contracts are often used for seasonal work, short-term projects, or temporary cover for staff absences.

In terms of redundancy, the length of your contract can affect your entitlement. If you have been employed on a fixed-term contract for two years or more and your contract is not renewed, you may be entitled to redundancy pay.

This is due to the fact that fixed-term employees who have been employed for two years or more are considered to be permanent employees, and therefore have the same rights as other permanent employees. This means that if your contract is not renewed and there is no other suitable employment available, you may be eligible for redundancy pay.

However, if your contract is for less than two years, you may not be entitled to redundancy pay unless it is stated in your contract. It`s essential to read and understand your employment contract to ensure that your rights are protected.

In some circumstances, your employer may argue that your fixed-term contract was intended to be temporary and that you were aware that the contract would come to an end. If your employer can demonstrate that your contract was genuinely temporary and you knew this when you accepted the job, you may not be entitled to redundancy pay.

When it comes to redundancy pay, the amount you are entitled to will depend on your length of service, age, and pay. The current statutory redundancy pay is based on a week`s pay for each year of service, up to a maximum of 20 years` service.

In summary, if you are on a fixed-term contract for two years or more and your contract is not renewed, you may be entitled to redundancy pay. However, if your contract is for less than two years, you may not be entitled unless it is stated in your employment contract. It`s always worth checking your contract and seeking advice if you`re unsure about your entitlements.