New guidance published on moving LEDs to permanent contracts
The guidance follows the agreement between government and the British Medical Association (BMA) resident doctors committee that, from August 2026, employers are expected to move LEDs to substantive (permanent) employment contracts, unless there is a legitimate reason for using a fixed-term contract.
The guidance:
- sets out the expected approach for offering permanent contracts as the default
- explains where fixed-term contracts may still be appropriate
- includes practical examples and FAQs to help employers apply the principles consistently.
It also highlights the importance of local implementation, including engagement with workforce, finance, medical leadership and local negotiating committee colleagues.
This is an important change
This is an important change for employers because it represents a shift away from the routine use of fixed-term contracts for this workforce. Trusts will need to be able to demonstrate progress, keep clear records where fixed-term contracts are used, and prepare for national monitoring and benchmarking of implementation.
Action required
- Read the guidance.
- Review contractual arrangements.
- Plan local implementation.
Employers should read the guidance now to understand what action is required, review current contractual arrangements, and plan how the change will be implemented locally. Reading the guidance will help organisations avoid non-compliance with the agreement, support better workforce planning, and ensure LEDs are treated in line with the agreed national position.
Update on other elements of the deal
In addition to the requirement to offer locally employed doctors and dentists a substantive contract, the deal also sets out:
- An expectation that employers will give LEDs the option to move, should they wish to, onto repurposed 2016 contracts by September 2026.
- A commitment to develop and implement a national set of terms and conditions for LEDs by April 2027.
- That a new pay protection mechanism will be designed for LEDs moving from 2002 to 2016 contracts.
Further guidance is currently being developed on how these commitments will be operationalised. While this work is underway, it is recognised that currently there is a mixture of practices.
Where employers already offer LEDs a repurposed 2016 contract they need to, in line with the terms of the deal, ensure this is as closely aligned to the 2016 contract as possible and that it is adapted to make it appropriate for a substantive contract where LEDs are transitioned into substantive roles.
For organisations that do not yet already offer a repurposed 2016 contract, they will need to do so. Support on creating an appropriate contract is available on our locally employed doctors page.
Organisations will need to start the transition to substantive contracts now, as this is separate to the other elements of the deal.
