What is a fixed-term contract end letter?
Even when everyone knew the date from the start, a fixed-term contract should not just quietly run out. A clear letter, sent in good time, tells the employee that the contract will not be renewed, why, and what they will be paid, and it gives you a signed record that they received it.
This letter records the employee, job title, contract start and end dates, and the reason it is ending: the fixed term itself, a finished project, a returning colleague, funding coming to an end, or a seasonal period. It reminds the employee that local law may give them notice, a payment or other rights on non-renewal, and says you will honour them. It sets the final pay date, how untaken holiday is handled, any other final payments such as a completion bonus, the company property to return and to whom, the reference you will give, and an optional offer to share suitable vacancies. The employee signs to acknowledge receipt only, without agreeing to the contents or giving up rights.
- Best for
- Temporary, maternity cover, project, seasonal and grant-funded roles
- Signed by
- The employer, and the employee to acknowledge receipt
- Covers
- End date, reason, final pay, holiday, property, references
- Length
- 2 pages
When to use a fixed-term contract end letter
- Maternity or parental leave cover ending as the colleague returns
- A 12-month project role finishing on schedule
- A grant-funded position whose funding is not renewed
- Seasonal staff at the end of the summer or holiday season
- A temporary contract where the employer has decided not to extend
What you fill in
19 blanks, then the name and email of each person who signs: employer, employee.
1 The letter
- Company name*
- Company address
- Date of the letter*
2 The employee
- Employee's full name*
- Employee's address
- Job title*
3 The contract
- Contract start date*
- Contract end date (last day of employment)*
- Reason the contract is ending* the agreed fixed term is coming to an end · the project the role was created for is finishing · the colleague you were covering for is returning · the funding for the role is ending · the seasonal period the role covered is ending
- More about the reason (optional)
4 Final pay
- Final pay date*
- Untaken holiday* Any holiday you have not taken by your end date will be paid in your final pay. · Please take your remaining holiday before your end date, on dates agreed with your manager. · Our records show that you have taken all of your holiday entitlement.
- Untaken holiday days (optional)
- Other final payments (optional)
5 Property and references
- Company property to return*
- Return property to*
- Reference* We will be happy to give a reference on request. · On request, we will confirm your job title and dates of employment. · We will provide a reference letter with this letter.
- Future vacancies* Yes · No
- Contact for questions*
6 Who signs
- Employer signature and date, job title · The manager or HR contact signing the letter.
- Employee signature and date · The employee signs only to acknowledge that they received the letter.
What the fixed-term contract end letter covers
- Why the contract is ending
- Final pay
- Returning company property
- References and future roles
- Employee acknowledgement
Using the fixed-term contract end letter, step by step
1 Letter and employee
Your company name fills in from your account and today's date is pre-filled. Add the employee, address and job title.
2 Contract and reason
Enter the contract start and end dates, choose the reason it is ending, and add more detail if it helps.
3 Final pay and property
Set the final pay date, choose how untaken holiday is handled, list any other final payments, and edit the list of property to return.
4 References and send
Choose the reference wording, whether to offer future vacancies and who to contact with questions, then send. The employee signs to acknowledge receipt.
Tips before you send it
- Send the letter well before the end date. Local law or the contract may set a minimum notice period.
- Check whether long service or repeated renewals give the employee extra rights where you operate, such as a redundancy payment or permanent status.
- Double-check the holiday balance before you send it, and invite the employee to query it.
- Use the employment contract extension letter instead if you decide to extend.
Sign it online in minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. FileIt builds the PDF with every signature, date box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in your vault and emailed to everyone.
Fixed-term contract end letter: frequently asked questions
Does the employee agree to the contract ending by signing?
No. The acknowledgement says the signature confirms receipt only, not agreement, and that the employee gives up no rights.
Does a fixed-term contract need a letter at all if it has an end date?
It depends on local law and the contract. Even where it is not required, a letter avoids confusion about the last day, final pay and holiday, and records that the employee was told.
Can I offer the employee other roles?
Yes. Choose Yes for future vacancies and the letter says you will tell them about suitable vacancies before the end date and welcome applications.
What if the employee is owed a payment because the contract was not renewed?
The letter says any such right will be honoured in addition to the letter, and you can list the payment under other final payments.