From 6th December 2023, there are new fixed term contract rules that will apply to new employment arrangements. We have summarised the key changes for you to be aware of, you can also find more by visiting the Fair Work website linked below.
What is a fixed term contract?
A fixed term contract is an employment contract that terminates at the end of a specific period.
What is changing?
From 6th December 2023, new rules will apply to employers that engage with employees on a fixed term contract. Whilst there are some exceptions to the new rules, we have summarised the key changes below.
- A Fixed Term Contract Information Statement will need to be given to employees engaging on a new fixed term contract. This will need to be provided before they start or as soon as possible after.
- Time limitations – from this date, fixed term contracts can’t be longer than 2 years, including extensions and renewals.
- Renewal limitations – fixed term contracts cant have the option to extend or renew the contract (where total employment is longer than 2 years). They also can’t be extended more than once.
- Consecutive contract limitations – new fixed term contracts can’t be for the same work as the previous contract or without a substantial break in the employment relationship.
Further information and resources
For more information regarding the new rules and changes, please visit the Fair Work Ombudsman website on the following link. You can also contact our office on 03 9693 5000 or email us at email@example.com for support or further information.
Snapshot: Limitations on using fixed term contracts (Source – New rules for fixed term contracts – Fair Work Ombudsman)