There are five fair reasons to end a contract (as defined in the Employment Rights Act 1996):
- a reason relating to the capability or qualifications of the employee;
- a reason relating to conduct;
- the employee was redundant;
- the employee could not continue to work in the position that he or she held without contravention of a statutory duty or restriction; and
- some other substantial reason capable of justifying dismissal.
In order to avoid successful employment tribunal claims for unfair dismissal, the reason for dismissal must fit into one of the above categories and you must be able to demonstrate that a fair process has been followed.
Non-renewal of a fixed term contract is treated as a dismissal and will usually fit into one of the fair reasons for dismissal. For the dismissal to be fair, the reason for the end of employment must be reflected in the employment contract and a fair process has been followed (e.g. the ACAS 3-step process).
A fixed-term contract of employment is defined as a contract of employment which:
- Has a definite start and end date, or
- Terminates automatically when a particular task is completed, or
- Terminates after a specific event (other than retirement or summary dismissal).
If you require further advice or assistance please contact Schools' Personnel Service.