Fixed term contracts

So, this makes a fixed term employee different to a permanent employee who is employed on an ongoing basis until the employer or employee ends the employment relationship or casual whereby the employee works the same time and days for a fixed period of time.

From December 6 2023, new rules will be introduced that limit the use of fixed term contracts as part of the Secure Jobs, Better Pay changes to the Fair Work Act. Employers can no longer employ an employee on a fixed term contract that:

• is for two or more years (including extensions)
• may be extended more than once or
• is a new contract that is for the same or a substantially similar role as previous contracts with
• substantial continuity of the employment relationship between the end of the previous contract and the new contract and either
• the total period of the contracts is two or more years
• the new contract cannot be renewed or extended or
• a previous contract was extended.

Employers must not take certain actions to avoid the new restrictions from applying. For example, they cannot:

• delay re-engaging an employee for a period
• not re-engage an employee and engage someone else instead to do the same or substantially similar role.

Some exceptions will apply, including if the fixed term contract is:

• for a training arrangement, or
• the employee is covered by an Award that allows fixed term contracts in the above circumstances.

Employers will be required to give employees they are engaging on new fixed term contracts a Fixed Term Contract Information Statement and will be made available to employers on 6 December 2023.

	Workplace Relations Support  If you would like to talk more about fixed term contracts and the upcoming changes, the Workplace Relations Team are happy to chat about this with you. You can contact us via phone (07) 3872 2222 and email support workplacerelations@amaq.com.au.
	Workplace Relations Toolkit Practice Manager training for Toolkit subscribers is designed around the policies, procedures and guiding documents provided upon subscription. You can contact us via phone (07) 3872 2222 and email support workplacerelations@amaq.com.au.
	Workplace Relations Consultancy tailor and run the practice manager training designed around scenarios that occur within your practice. You can contact us via phone (07) 3872 2222 and email support workplacerelations@amaq.com.au.