From 6 December 2023, new rules apply under the Fair Work Act 2009 (Cth) when engaging employees on fixed term contracts. A fixed term contract is an employment contract that terminates at the end of a specific period. This can be contrasted with an employment contract that is ongoing or permanent.

Fixed Term Contract Information Statement

Employers must give every employee engaged on a new fixed term contract a Fixed Term Contract Information Statement (FTCIS) before the employee commences employment or as soon as possible following their commencement [s 333K].

The FTCIS can be downloaded from the Fair Work Ombudsman’s website here.

The FTCIS is in addition to the Fair Work Information Statement which employers must provide to all new employees. This outlines minimum workplace rights and entitlements.

Limitation on using fixed term contracts [s 333E]

Time limitation

A fixed term contract cannot be for longer than 2 years, including extensions and renewals.

Renewal limitations

A fixed term contract cannot include an option to:

Consecutive contract limitations

An employer cannot employ someone on a new fixed term contract if:

Contracts entered into before 6 December 2023

The new limitations do not apply to fixed term contracts entered into before 6 December 2023. However, contracts entered into before 6 December 2023 will be considered when applying the consecutive contract limitation for a new fixed term contract entered into on or after 6 December 2023.

Exceptions [s 333F]

The new limitations on fixed term contracts do not apply to fixed term contracts involving:

Further categories of contracts excluded from the operation of the new rules may be prescribed by regulation [s 333F(1)(i)].

Consequences of a fixed term contract failing to meet the new rules

If a contract does not meet the new limitations rules, the contract’s end date will not apply. Other terms and conditions in the contract will continue to apply [s 333G].

If an employee and an employer disagree about whether the new limitations apply to a particular contract, and they are unable to resolve the disagreement, they can take their dispute to the Fair Work Commission.

This page largely reproduces the information, except for examples and tables, provided by the Fair Work Ombudsman at www.fairwork.gov.au/newsroom/news/new-rules-for-fixed-term-contracts. © Fair Work Ombudsman www.fairwork.gov.au Information (Licenced Materials) provided by the Fair Work Ombudsman is licenced under a Creative Commons Attribution 3.0 Australia licence (Licence). You can view a copy of the Licence on the Creative Commons Australia website.