Non Renewal of Employment Contract

Non renewal of employment contract: What it means and what to do

As an employee, receiving news that your employment contract will not be renewed can be a daunting experience. It can bring uncertainty and anxiety about your future and may leave you wondering what led to the decision.

Nonetheless, it is essential to understand what it means and what options are available to you.

What does non-renewal of employment contract mean?

Non-renewal of employment contract simply means that your employer has decided not to extend your employment contract beyond its current expiration date. This may be due to various reasons such as:

– Unsatisfactory performance

– Company restructuring

– Financial constraints

– Change in business strategy

– End of a project or contract

– Incompatibility with the company`s culture or values

Regardless of the reason, it is essential to take the decision professionally and explore your available options.

What to do when your employment contract is not renewed

1. Discuss the decision with your employer

If your contract has not been renewed, the first thing you should do is to have a discussion with your employer. Seek clarity on the reason for the decision and understand if there are any possibilities for reconsideration. During the discussion, be professional and avoid becoming emotional or accusatory.

2. Negotiate an extension or severance package

If your employer is open to reconsideration, you may negotiate an extension or a severance package that is favourable to you. This may include additional leave days or payment that covers a few extra months beyond the current contract.

3. Update your resume and start job hunting

If your employer is unwilling to reconsider, it`s best to start updating your resume. It`s essential to start job hunting as soon as possible to secure another opportunity before your current contract expires.

4. Refrain from burning bridges

Irrespective of the reasons for non-renewal of your employment contract, it`s important to avoid burning bridges with your employer. You never know when you might need a reference or when a former employer could be an essential contact in your industry.


Non-renewal of an employment contract can be a challenging experience for any employee. However, it`s essential to take the decision professionally and seek clarity on the reasons for it. By exploring available options, negotiating an extension or severance package and starting job hunting, you can ensure a smooth transition to your next career chapter.