Employment contracts in the UK

Start hiring in UK

Hire and pay talents
with Horizons in
180+ countries

Standard employment contract in the UK: Open-ended contract

Contracts in the UK are open-ended, or more commonly referred to in the UK as ‘indefinite’ or ‘permanent’ contracts.

Alternative employment contract in the UK: Fixed-term

A fixed-term contract in the UK is a contract which has been agreed to last for a set amount of time. They are set to end when either:

A specific task is completed,
A specific event takes place.

If a fixed term contract is not renewed:

After 1 year: you must provide a written statement of reason for not renewing the contract. If the reason is redundancy, then statutory redundancy applies.
After 2 years: not renewing the contract is considered a dismissal and must have a valid reason or there is a risk of a claim for unfair dismissal.

The maximum duration of a fixed-term contract is 4 years. Any fixed-term contracts exceeding 4 years without a good business reason are automatically converted into an open-ended contract.

These types of contracts are often used when an employer needs to cover a specific role for a limited period, such as maternity leave cover. Fixed-term employees must receive the same treatment as full-time permanent staff.

Are there other types of employment contracts in the UK?

A zero-hours contract is a type of contract which does not guarantee the employee any set hours of work. They are often referred to as ‘casual’ contracts.

Zero-hours contracts mean that employers can ask workers to be on call to work when needed, and employers do not have to give them a set number of hours or any work at all. However, employees on a casual contract do not have an obligation to be available for work when asked. Employers cannot have employment clauses in zero-hours contracts that prevent employees from accepting other work.

Zero-hours workers are still entitled to statutory annual leave, and the National Minimum Wage, and employers cannot prevent zero-hours workers from getting other work.

Navigation

Standard employment contract in the UK: Open-ended contract

Alternative employment contract in the UK: Fixed-term

Are there other types of employment contracts in the UK?

Hiring in the UK, Made Easy

FAQs

Client Testimonials

Hire borderless talent with Horizons

Hiring in the UK, Made Easy

Your business can easily hire employees in the UK without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 185 countries worldwide. All you need to do is focus on your business.

FAQs

What are the main differences between the permanent contract and the fixed-term employment contract in the UK?

Open-ended, or permanent, employment contracts are the most common type of contract in the UK. They offer ongoing employment with no fixed end date. They have more flexibility for termination but they are more difficult and costly than expiration of fixed-term.

Fixed-term contracts, on the other hand, are typically used for specific roles or projects that have a defined start and end date. Dismissal is possible but this must be stated in the contract. deciding not to renew a fixed-term contract can result in the risk of an unfair dismissal claim and a potential compensation payment.

Zero hours contracts are a more flexible type of employment contract that does not guarantee a set number of hours each week. Instead, employees are only required to work when needed.

Which UK employment contract is right for me?

The type of contract that is best for you depends on the job role that you require and the specific circumstances. For most roles, an open-ended contract is the most suitable, but in some circumstances, an alternative like fixed-term may be more suitable.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons completely took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. When they advised our international expansion, they spoke confidently and were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVice President of Software Development

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources

Horizons has been very effective in providing our company support in all the administrative procedures, sometimes complex, required by the Singaporean administration.

Gerald iannoneSales Director

Horizons’ team provided a superb service from start to finish, making a complex process a simple one. Everything was taken care of in an efficient and accurate manner, with quick communication whenever required. Highly recommended and would use again in the future if the need arises.

Philipp RinbergerManaging Director

Employment contracts in the UK

Start hiring in UK

Standard employment contract in the UK: Open-ended contract

Alternative employment contract in the UK: Fixed-term

Are there other types of employment contracts in the UK?

Hiring in the UK, Made Easy

FAQs

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

180+

100+

24x5

130+

180+

100+

24x5

130+

What to expect when you connect with Horizons