Contract 'subject to extension'

[GNfan]

Hi all,
Hoping someone can advise. I really appreciated your help with a different issue recently.
I am on a 12 month employment contract, due to end September 1st 2021. The wording in the contract said the job was for twelve months, 'subject to extension', because funding was an issue.
The council have just awarded my employer extra funding and my boss has said "great, so you can stay on til March 2022". She only said this casually in passing, and I didn't reply, it wasn't the time.
My question is... If I don't want to stay beyond September 1st, do I have to resign? Should they offer me a new contract? Or is the assumption that I just stay on, and nothing needs to be put in writing?
It is a super stressful job, so I was kind of looking forward to leaving in September, and trying to find another job/taking a step back (I know this might sound silly in the current climate) so I was curious to know what the contract wording means in practice?
Thank you. I hope that made sense.

You have two options. You can either tell your boss now that you won’t be accepting any offer of an extension and will be leaving at the end of your current contract.

Or, you can hedge your bets for a while in case you change your mind, and decide later, possibly when you get the extension in writing.

Thanks so much @flowery.
And do they have to put something in writing? Could they assume that since the funding has come in, and they said 'subject to extension' that my current contract will automatically extend, without then having to put it in writing?
That actually sounds quite daft written down, I know, but it's quite a disorganised place I work in!

Well they don’t have to. If they made clear to you verbally that they were extending and you accepted and carried on coming to work that would be ok. Not sensible on their part, but they could.

But what difference does it make? Whether they confirm it in writing or not, at some point you will need to tell them that you will not be staying longer than the end of the existing contract.

@flowery Thank you. My contract officially end in September, so I'll discuss with them properly. Your replies are really helpful.

I have worked on year contracts, charity role, and I was always told in writing if my contract was being extended and for how long. It was normally each year as funding was secured. I would expect both verbal and written.

Legally it depends on what your contract says and how it actually deals with both the fixed term itself, and any notice required.

If the contract terminates automatically on 1 Sept without the need for either party to give notice, they would need to offer you a written contract/letter which you would have to accept to extend the contract. Otherwise, you don’t have to do anything - it just terminates.

If the contract is “until 1 Sept, subject to extension” and that is formalised in that way, there will need to be notice periods included as it isn’t legally certain when the contract ends (although I would say arguably, “subject to extension” would impliedly require the consent of both parties, so it could still terminate automatically.

It really depends on the wording of your contract!