Can a fixed-term contract be terminated before the end of the term if the post is redundant?
Yes, a fixed-term contract can be terminated by reason of redundancy before the end of the term. Redundancy will be a potentially fair reason for the dismissal. However, if there is no provision for termination with notice under the fixed-term contract, early termination for redundancy will amount to a breach of contract and the employer will be liable to pay the employee compensation for loss of remuneration for the rest of the fixed-term period. The employee will also be entitled to statutory redundancy pay if he or she has at least two years' continuous service.
The employer must follow the same redundancy procedures that apply to permanent employees, and must ensure that fixed-term employees are not treated less favourably because of their fixed-term status, unless the employer can justify this.