generalfixed-term

Fixed-term contracts — your rights and the 4-year rule

Fixed-term employees have the right not to be treated less favourably than comparable permanent employees. After 4 years of successive fixed-term contracts you are normally treated as permanent.

Last reviewed: 27 May 2026 by panel solicitor2 min read

The short answer

Fixed-term employees must not be treated less favourably than comparable permanent employees. After 4 years of successive fixed-term contracts you normally convert to permanent. Non-renewal counts as dismissal in law. Legal basis: Fixed-term Employees Regulations 2002 and ERA 1996 s.95(1)(b).

The protection

The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 give fixed-term employees broadly the same rights as comparable permanent employees, unless less favourable treatment can be objectively justified.

That means: same pro-rated pay, same access to occupational pension, same access to training, the same family-friendly entitlements.

The 4-year rule (regulation 8)

If you have been continuously employed under successive fixed-term contracts for 4 years or more, your status converts to permanent automatically — unless the employer can show that the use of fixed-term contracts is objectively justified.

The 4 years count from 10 July 2002. You can ask the employer for written confirmation of your status, and they must respond within 21 days.

Non-renewal = dismissal

Non-renewal at the end of a fixed-term contract counts as a dismissal in law (s.95(1)(b) ERA 1996). That means:

It counts as a dismissal for unfair dismissal purposes (after 2 years' service, or day one from October 2026).
It can count as a redundancy if the work has ceased (statutory redundancy pay applies after 2 years).
Selection for non-renewal cannot lawfully be tainted by discrimination (Equality Act 2010).

What to check

Is your pay, holiday and pension on the same terms as permanent colleagues doing comparable work?
Have you been on fixed-term contracts for 4+ years? Ask in writing for permanent status.
If a contract is not renewed, treat it like any other dismissal — get the reason in writing, consider ACAS Early Conciliation if you suspect unfair selection or discrimination.

Time limit

3 months less one day for unfair dismissal or less-favourable-treatment claims, starting ACAS Early Conciliation first.

What to do this week

If you've been on rolling fixed-term contracts for 4+ years, write to HR asking for written confirmation of permanent status under reg 8 — they must respond in 21 days.

Sources

Employment Rights Act 1996 Read on legislation.gov.uk
Equality Act 2010 — sections 4 Read on legislation.gov.uk
Fixed-term Employees Regulations 2002 — sections 3, 8 Read on legislation.gov.uk

Last reviewed 27 May 2026 by an SRA-authorised solicitor on our panel.

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