Normal fairness test applies for dismissal due to non-renewal of fixed-term contract

The EAT holds that dismissals by non-renewal of a fixed-term contract are not a special case attracting different considerations from those ordinarily considered under the normal test of ‘reasonableness’.
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Where a fixed-term contract expires and is not renewed, that is a dismissal in law. In Royal Surrey County NHS Foundation Trust v Drzymala, Drzymala (D) was employed on a series of fixed-term contracts from 2011 to 2014, when it was not renewed. The EAT upheld an ET’s finding that the dismissal was unfair because an alternative position that had existed when D was working out her notice had not been offered to her. Dismissals by non-renewal of a fixed-term contract are likely to be potentially fair for “some other substantial reason” but are not a special case attracting different considerations from those ordinarily considered under ‘reasonableness’ in S.98(4) of the Employment Rights Act. In this case the ET did not err either by substituting its own view for that of the employer on the issue of fairness, nor by placing too high a burden on the employer when deciding that it should have offered to discuss possible alternative employment with the employee.


This update provides summary information and comment on the subject areas covered. Where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented and the judgments made in every aspect of the case. Click on the links to access full details. If no link is provided, contact us for more information.  Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.

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