In law there are five reasons for terminating a contract:
Conduct
Capability
Redundancy
Statutory Bar
Some other substantial reason.
Non-renewal of a fixed term contract is considered to be a dismissal. However, if the contract is fixed term subject to specific funding which ceases to be available after a period of time, then the contract can be terminated based on this information provided the correct notice period is given and the employer has followed the dismissal procedure.
Employees who have two years' continuous service have a right to take a complaint of unfair dismissal to an Employment Tribunal. The Tribunal will consider both the procedure followed and the reasons for the dismissal. A financial penalty can be imposed if the dismissal is found to be unfair.
In any circumstances which could result in dismissal, advice must be sought from the District Lay Employment Secretary.