Fixed Term Employment Contract changes from 6 December 2023

From 6 December 2023, a number of changes are coming into effect to regulate the use of Fixed Term Employment Contracts.

What is a Fixed Term Employment Contract

This is a contract which terminates at the end of a specific period, including contracts where an employee is employed for a specific period.

New limits for Fixed Term Contracts

• A Fixed Term Employment Contract cannot be for longer than two years.
• A Fixed Term Employment Contract cannot be renewed or extended more than once, even if the total of the period, including extensions, is less than two years.
• If a Fixed Term Contract comes to an end, an employer cannot employ someone on a new Fixed Term Contract for the same work or position as the previous Fixed Term Contract unless there is a substantial break in the employment relationship.

New requirements for Fixed Term Contracts

If an employee is engaged on a Fixed Term Contract after 6 December 2023, the employer is required to provide a Fixed Term Contract Information Sheet (FTCIS). A template of the FTCIS will be available for download from the Fairwork website from 6 December 2023.

Disputes about Fixed Term Contracts

If a dispute arises regarding a Fixed Term Contract, the employee and employer should, at first instance, attempt to resolve the dispute at the workplace. If the dispute cannot be resolved, the Fair Work Commission will now be able to resolve the dispute from 6 December 2023, either in the form of mediation, conciliation or arbitration.

If you have any questions in respect of the use of Fixed Term Contracts, please contact our Workplace Relations and Legal Team on 02 6175 5900.