Employees who are employed on fixed term contracts can be entitled to redundancy pay. This is more often than not a theoretical problem than a practical one because many (if not most) fixed term contracts are for fewer than 2 years and such roles are more commonly filled by external candidates than internal ones. However, it is a trap to be aware of when considering giving an employee with around 2+ years’ service a fixed term contract in circumstances where you don’t expect to renew it upon its expiry.