Under employment law after 4 years service on a FTC you are automatically a permanent employee. Theres nothing to stop a club putting into a contact an end of contract payment that would buy out any potential unfair dismissal claim that would outweigh anything that could be claimed.
Its the Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 btw.
For anyone whos interested this clause is from a standard player contract and why they never take a club to tribunal for unfair dismissal after 4 years even though they would be a permanent member of staff:
19. Severance
19.1 If the Player shall not make an application to an Employment Tribunal for compensation in
respect of unfair dismissal or redundancy as a result of not being offered a new contract either
on terms at least as favourable as under this contract or at all then the following provisions of
this clause 19 shall take effect.
19.2 If by the expiry of this contract the Club has not made to the Player an offer of re-engagement on
terms at least as favourable to the Player as those applicable over the last twelve months of this
contract (or the length of this contract if shorter) then subject to clauses 19.1 and 19.3 the Player
shall continue to receive from his Club (as a separate payment representing compensation as
more particularly referred to in the Code of Practice) a payment equal to his weekly basic wage (at
the average amount of his weekly wage over the preceding 12 months of this contract or the
whole of this contract if shorter) for a period of one month from the expiry of this contract or until
the Player signs for another club whichever period is the shorter provided that where the Player
signs for another club within that period of one month at a lower basic wage than such average
then such payment shall in addition include a sum equal to the shortfall in such basic wage for the
remainder of such period;
19.3 The maximum amount payable to the Player under sub-clause 19.2 is double the maximum sum
which an Employment Tribunal can award from time to time as a compensatory award for unfair
dismissal.