Fixed Term Employment Contract Changes Has Come Into Effect on 6 December 2023

Members are reminded that the changes that regulate the use of Fixed Term Employment came into effect on 6 December 2023.

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 by way of a Fixed Term Contract after 6 December 2023, the employer is required to provide a Fixed Term Contract Information Sheet (FTCIS). You can find a template of the FTCIS here.

Disputes about Fixed Term Contracts

From 6 December 2023 the Fair Work Commission may be able to resolve a dispute between an employer and employee in respect of Fixed Terms Contracts, which could not be resolved in the workplace. Members can find the relevant application forms to the Fair Work Commission here.

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.