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Free letter template · Word

Contract Expiry Letter

A contract expiry letter reminds a fixed-term employee that their contract will end on its agreed date and confirms that employment will conclude automatically on that day. It is a factual courtesy notice that also lists final dues, exit formalities and the documents the employee will receive.

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[Company Logo][Company Name]

INTIMATION OF CONTRACT EXPIRY

Ref. No.:
[Reference Number]
Date:
[Date]

To,
[Employee Name]
[Designation], [Department]
Employee ID: [Employee ID]

Subject: Expiry of Your Fixed-Term Employment Contract

Dear [Employee Name],

As you are aware, you were engaged by [Company Name] as [Designation] under a fixed-term employment contract dated [Date], for the period from [Date of Joining] to [Contract End Date], for [project / purpose].

This is to inform you that your contract will expire on [Contract End Date], and your employment with the company will conclude on that date in accordance with Clause [Clause Number] of your contract. No further notice is required from either side.

Before your last working day, please:

  1. Complete and hand over your work to [Reporting Manager] or [Successor Name]
  2. Return all company assets, documents and access cards
  3. Complete exit clearance with HR, IT, Admin and Finance

Your final settlement will include salary up to [Contract End Date], encashment of eligible leave, statutory bonus if applicable, pro-rata gratuity as applicable to fixed-term employees under the law, and reimbursement of approved claims, less applicable deductions. It will be paid within [number] days of the expiry date.

A service certificate and relieving letter will be issued on completion of clearance. We thank you for your contribution to [project / department] and wish you all the best.

Yours sincerely,

For [Company Name]
[Authorised Signatory]
[Designation]
Received by
[Employee Name]
Date: [Date]

What this template includes

  • Reference to the fixed-term contract and its dates
  • Confirmation that employment ends on the expiry date
  • Statement that no further notice is required as per the contract
  • Final dues including pro-rata benefits applicable to fixed-term employees
  • Handover and asset return instructions
  • Service certificate and relieving letter
  • Thanks for contribution

When to use it

  • A fixed-term or project-based contract is reaching its scheduled end date
  • Seasonal or campaign hires are completing their term
  • Interns or trainees on a fixed tenure are finishing
  • You want to give advance notice so the employee can plan

How to customise this template

  1. 1Enter the contract start and end dates from the signed contract
  2. 2Send it at least two to four weeks before expiry where possible
  3. 3Check which benefits apply pro-rata to fixed-term employees under your policy and the Labour Codes
  4. 4Mention any opportunity to apply for open roles if relevant

HR tips

  • Do not use repeated short contracts to avoid permanent status; take advice on long chains of renewals
  • Treat fixed-term employees on par with regular staff for benefits where required
  • Be clear that this is expiry, not termination for cause
  • Thank the employee for the project delivered

Fixed-term engagement and its benefits are governed by the Labour Codes and state rules, which are still being notified. Use this letter as a starting point and verify entitlements against applicable labour laws and your policies, with a legal adviser where needed.

For HR & hiring managers

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Frequently asked questions

Is notice required when a fixed-term contract expires?+

Usually the contract ends automatically on the agreed date, and no separate notice is needed. A courtesy letter is still good practice so the employee can plan.

Are fixed-term employees entitled to gratuity?+

Under the Code on Social Security, fixed-term employees are entitled to gratuity on a pro-rata basis as per the rules. Check the current rules and take advice on calculation.

What is the difference between contract expiry and non-renewal?+

Contract expiry simply records that the term ends. A non-renewal letter is used when renewal was possible or expected and the company has decided not to renew.