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How are fixed-term contracts impacted by the Employment Rights Act 2025?

ASAP

UK’s ERA 2025: A New Risk Landscape for Fixed-Term Contracts

How are fixed-term contracts impacted by the Employment Rights Act 2025?

By Paul Harrison and Caleb Oyekanmi

  • 1 minute read

Much of the discussion around the Employment Rights Act 2025 (‘ERA 2025’) has focused on the headline unfair dismissal reforms. From 1 January 2027, employees will acquire ordinary unfair dismissal protection after six months, rather than after two years’ service (and will, moreover, no longer have a c.£124,000 cap on the compensatory award they might receive).

One area that has received comparatively little attention, however, is the impact on fixed-term contracts. 

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Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.

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