Fixed-term contracts are employment contracts with a specified end date, now subject to significant restrictions from December 2023.
Legislation: Fair Work Act 2009 s333E-333N | Category: Employment Types
What is Fixed-Term Contracts?
Fixed-term contracts are employment contracts that specify an end date or that employment will end when a particular task is completed or event occurs. Significant restrictions on fixed-term contracts were introduced in December 2023 to prevent misuse and provide greater job security.
Under the new rules, fixed-term contracts generally cannot exceed 2 years (including renewals or extensions), and cannot be renewed or extended more than once. There are limited exceptions for genuine fixed-term work such as certain training arrangements, specialised skills, and government-funded positions.
Key Compliance Points for Employers
- A Fixed Term Contract Information Statement must be provided before or as soon as practicable after starting
- Contracts that breach the new rules convert to ongoing employment
- The prohibition applies to contracts entered into, renewed, or extended from 6 December 2023
- Employees on fixed-term contracts have the same entitlements as other permanent employees
- Non-renewal of a fixed-term contract can still be an unfair dismissal if the employee had a reasonable expectation of renewal
Frequently Asked Questions
What is Fixed-Term Contracts?
Fixed-term contracts are employment contracts with a specified end date, now subject to significant restrictions from December 2023.
Why is Fixed-Term Contracts important for employers?
Understanding fixed-term contracts helps employers comply with Australian employment law, avoid penalties, and maintain fair workplace practices.
