Changes to fixed-term contracts Dec 6 2023

A reminder that as of 6 December 2023, the way in which employers engage fixed term contracts is changing.

New limits on fixed-term contracts as a result of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 will take effect. The changes look to offer additional protection to workers on fixed-term contracts.

The changes only apply in relation to new fixed-term employment contracts, where no exceptions apply. It is important to note that previous fixed term contracts will be affected by the changes, if the previous and new contracts constitute consecutive contracts.

The relevant changes in requirements in the Fair Work Act 2009 (Cth) include:

A limit to the length of fixed term contracts.

Under the changes, a fixed-term contract can’t last beyond two years.

Limitations to renewing contracts

Under the changes, employers cannot extend or renew the contract beyond two years or extend or renew the contract more than once.  These limitations for extending and renewing contracts more than once include fixed-term contracts where the total period is less than two years.

Fixed Term Contract Information Statement

As of today, ensure that all fixed-term employees are given a Fixed Term Contract Information Statement upon commencement of their role. It’s also still required to provide the Fair Work Information Statement.

Under the changes, The Fair Work Commission will have powers to deal with disputes if they cannot be resolved at a workplace level.

If you have any questions regarding the above, reach out to our Workforce Advisory experts.

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