Fixed term contract extension letter template

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This Fixed Term Contract Extension Letter provides a clear written record of an agreed extension to an employee's existing fixed term contract. It confirms the revised end date, any changes to terms and conditions and the arrangements that will apply during the extended period.

Use this template to:

  • Confirm that an existing fixed term contract is being extended
  • Set out the new employment end date
  • Confirm whether the existing terms and conditions remain unchanged
  • Record any agreed changes to pay, duties, hours or other contractual terms
  • Clarify that the employment remains fixed term unless otherwise confirmed
  • Create a written record of the contractual variation
Fixed term contract extension letter template
2026 Reviewed
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What's included in this template?

This template brings together the key information, sections and considerations you need to create a clear, comprehensive and professional HR document. Preview the document below.

  • Confirmation of the existing fixed term contract
  • Current and revised contract end dates
  • Reason for extending the fixed term arrangement
  • Confirmation of continuing terms and conditions
  • Details of any agreed changes to employment terms
  • Employee acknowledgement and record of the variation
Template

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Email

[Sender name]

[Sender address]

[date]

[Recipient name]

[Recipient address]

 

Dear [Recipient first name],

Extension of your fixed term contract

I am writing to confirm that your existing fixed term contract, which was due to end on [original contract end date], has been extended.

Your employment will now continue until [new contract end date], unless your employment ends earlier in accordance with the terms of your contract.

Reason for the extension

The extension is being made because [briefly explain the reason for the extension, for example, the project you were appointed to support has been extended / additional temporary work remains available / the employee you are covering has not yet returned].

Your role

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£2.99
Specifications
Access 12 months, with updates
Length 2 pages • 479 words
Jurisdiction England, Wales, Scotland
Based on UK law, ACAS guidance
Last update 30/09/2026
Update reason Description update.
Next review 30/03/2027
Delivery & Format Instant digital delivery, .doc · .txt · email

What is a fixed term contract extension letter?

Fixed term contract extension letter template preview

This letter provides a straightforward way to formally confirm an extension to an employee's fixed term contract. It can be used where the organisation has agreed to continue the employee's employment beyond the original contractual end date while retaining the fixed term nature of the arrangement.

Confirming the extension

The letter clearly records the original contract end date and the new agreed end date. This helps avoid uncertainty about when the fixed term arrangement is due to finish.

Explaining the reason for the extension

The employer can briefly explain why the extension is required, such as a project continuing for longer than anticipated, continued maternity or other family leave cover, additional work or a temporary business requirement.

Confirming terms and conditions

Where the existing terms remain unchanged, the letter confirms this clearly. Where other contractual terms are changing, the relevant amendments can be recorded so that the employee has a clear written record of what has been agreed.

Maintaining fixed term status

The letter makes clear that the extension does not, by itself, create permanent employment. The employee remains employed under a fixed term arrangement until the revised end date unless the contract is subsequently extended, renewed or otherwise changed.

Creating a clear contractual record

Putting the extension in writing reduces uncertainty and provides a clear record of the agreed variation. The employee should be given an opportunity to raise any questions or concerns about the revised arrangement.

Best in class example

An employee was originally appointed on a 12-month fixed term contract to provide additional project support. The contract was due to end on 31 December, but the project timetable changed and the work was expected to continue into the following year.

The manager discussed the position with HR and confirmed that there remained a genuine temporary business requirement for the role. The employee was approached before the original contract end date and was offered an extension for a further six months.

The employee agreed to the extension. Their job title, salary, working hours, place of work and other terms remained unchanged, apart from the revised contract end date.

HR issued a written extension letter confirming that the original contract would now end on 30 June. The employee retained their existing continuous employment date and the extension was recorded on the HR system and personnel file.

The wider HR process

Related HR resources and workflow

Explore the HR resources that may be relevant before and / or after using the Fixed term contract extension letter, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.

Previous
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Offer of fixed term employment letter

An offer of fixed term employment letter clearly outlines the terms of a temporary role, including the duration, expectations, and compensation, providing both parties with legal protection and avoiding potential misunderstandings.

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Fixed term contract extension letter
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End of fixed term contract letter

The End of Fixed Term Contract Letter Template provides a clear and professional way to confirm that an employee's fixed-term contract will come to an end on the agreed date.

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Implementation guidance

Use these best practice actions, recommended timescales and process stages to understand when and how the Fixed term contract extension letter should be used, helping ensure each step is handled consistently and appropriately documented.

Step Description Responsibility Timing
1 Review the existing fixed term contract, including the current end date, reason for the appointment and relevant contractual terms. HR / Manager At least 2–4 weeks before end date where practicable
2 Confirm the business reason for the extension and determine the proposed new end date and any changes to the existing terms. Manager / HR Before extension is offered
3 Discuss the proposed extension with the employee, including the new end date and any changes to their terms and conditions. Manager / HR Before original contract ends
4 Issue the extension letter and ensure the employee receives a clear written record of the agreed changes. HR Before or promptly after the extension takes effect
5 Update the HR and payroll records and diarise the revised contract end date for future review. HR / Payroll Immediately after extension is confirmed
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Common mistakes

Understand the common mistakes to avoid when using this HR template, helping you reduce risk, prevent unnecessary costs and ensure the process is handled correctly.

  • Allowing the employee to continue working beyond the original end date without formally documenting the extension
  • Failing to state the new fixed term end date clearly
  • Changing other contractual terms without making those changes clear to the employee
  • Repeatedly extending contracts without reviewing the longer-term employment position
  • Failing to consider whether the employee is being treated less favourably because they are on a fixed term contract
  • Forgetting to update HR, payroll and contract records
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HR considerations

UK employment law and best practice

This template is designed to support the process, but the document should be used alongside the relevant HR procedure and applied to the circumstances of the individual case.

Fixed term contracts

A fixed term employee is employed under a contract that is due to end on a particular date or when a specific task or event occurs. Extending the contract changes the agreed period of employment and should be properly documented. https://www.gov.uk/fixed-term-contracts

Putting the extension in writing

Where an extension changes the employee's main terms of employment, the change should be put in writing. Acas states that changes to main terms must be provided in writing within one month of the change. https://www.acas.org.uk/changing-an-employment-contract/employer-responsibilities/if-employment-contract-changes-are-agreed

Agreeing contractual changes

An employment contract is legally binding and changes will normally need to be agreed between the employer and employee unless there is an applicable contractual provision allowing the change. Employers should make sure the employee understands what is changing and when the change takes effect. https://www.acas.org.uk/changing-an-employment-contract/employer-responsibilities

Fixed term employees and less favourable treatment

Fixed term employees must not be treated less favourably than comparable permanent employees regarding contractual terms or other treatment because they are on a fixed term contract, unless the difference can be objectively justified. The pro rata principle applies where appropriate. https://www.gov.uk/fixed-term-contracts/employees-rights

Four-year rule

Where an employee has been continuously employed on successive fixed term contracts for four years or more, they will generally become a permanent employee unless there is a qualifying exception, such as a good business reason for continuing on a fixed term basis or an applicable collective or workforce agreement. Employers should therefore review repeated extensions rather than treating each extension in isolation. https://www.gov.uk/fixed-term-contracts/renewing-or-ending-a-fixedterm-contract

Continuous employment

An extension of an existing fixed term contract does not normally create a new period of employment. The employee's existing continuous employment date should therefore be retained when updating employment records, subject to the particular circumstances of the employment relationship. https://www.acas.org.uk/what-must-be-written-in-an-employment-contract/what-the-written-statement-must-include

End of the extended fixed term

A fixed term contract normally ends automatically when the agreed end date is reached. However, where an employer decides not to renew a fixed term contract, this can amount to a dismissal and the employer may need to follow an appropriate process and establish a fair reason where the relevant legal protections apply. https://www.gov.uk/fixed-term-contracts/renewing-or-ending-a-fixedterm-contract

Written statement of employment particulars

The expected duration of a fixed term appointment is one of the matters covered by the written statement of employment particulars. Where contractual terms change, the employer should ensure the written information remains accurate. https://www.acas.org.uk/what-must-be-written-in-an-employment-contract/what-must-be-written-in-an-employment-contract

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FAQs

 

<h3>Does extending a fixed term contract make the employee permanent?</h3>
<p>No. An extension normally continues the fixed term arrangement to the new agreed end date. However, employers should monitor successive fixed term contracts because an employee who has been continuously employed on successive fixed term contracts for four years may generally become a permanent employee unless an exception applies.</p>
 
<h3>Does the employee's continuous service date change when their contract is extended?</h3>
<p>Normally no. An extension of an existing contract does not normally create a new employment relationship, so the existing continuous employment date should generally remain unchanged.</p>
 
<h3>Can the salary or other terms be changed when a fixed term contract is extended?</h3>
<p>Yes, provided the change is lawful and properly agreed or otherwise authorised by the contract. Any changes to main terms should be confirmed in writing.</p>
 
<h3>Can an employer keep extending a fixed term contract?</h3>
<p>There is not simply a rule that allows unlimited extensions. Employers should consider the reason for each extension, whether the employee is being treated fairly compared with permanent employees and whether the four-year rules have been reached.</p>
 
<h3>What happens if the employee works beyond the original end date?</h3>
<p>The employer should avoid allowing an employee to continue working without formally addressing the contractual position. If an employee continues working beyond the agreed end date without a formal renewal, there can be an implied agreement that the end date has changed, creating uncertainty about the contractual position.</p>
 
<h3>Why use HRDocBox rather than AI?</h3>

<p>HRDocBox templates are designed specifically for UK employers and structured around practical HR processes, UK employment law and current Acas and GOV.UK guidance. They provide a consistent starting point that can be adapted to the circumstances of the individual employee and the organisation.</p> 

How this content is developed and reviewed

The Fixed term contract extension letter template is developed using a practical HR methodology that considers current UK employment legislation, ACAS guidance, CIPD good practice and the real-world HR process it supports. Templates and supporting information are regularly reviewed and updated, with additional reviews triggered by significant changes to legislation, guidance or established HR practice, helping ensure each document remains practical, relevant and suitable for UK employers.

About the author

Darryl Horn, Chartered HR Director

Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.

He has extensive practical experience of managing employment contract HR processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.

HRDocBox has been creating practical UK HR documents since 2009.

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