From Wednesday 6 December 2023, new rules apply when engaging employees on fixed term contracts.
A fixed term contract terminates at the end of a specific period. This includes contracts where the employee is employed for a specific period.
From 6 December there are new requirements for employers regarding fixed term contracts that relate to how long they can be, how many times they can be renewed, and consecutive contracts.
The new rules include:
- two years limit on the maximum duration of fixed term contracts,
- requirement to provide a new Fixed Term Contract Information Statement,
- variations to lengths including one extension and total combined contract lengths not exceeding two years,
- penalties to address avoidance measures and consequences for exceeding the limit, and
- exceptions to the limit under few circumstances, including reliance on government funding.
See the Fair Work Ombudsman fact sheet below:
Are you ready for the silly season?