The repeated rolling over of fixed term contracts for the same employees has been curtailed by changes to the Fair Work Act. Employers can now offer fixed term contracts for a maximum of two years or two consecutive contracts.
The Government has recently made changes to the Fair Work Act (2009) limiting employer’s use of fixed term contracts.
Employers can now offer fixed term contracts for a maximum of two years or two consecutive contracts.
If these new provisions are ‘breached’ with a third temporary employment contract, then the employee would be considered to be legally permanent and therefore entitled to normal permanent conditions. Employers are unable to write the terms of the contract to avoid these deemed provisions.
There are several exceptions to these new rules. These include apprenticeships or traineeships, temporarily replacing another employee on extended leave or absence, and Government funded positions and where the employee is performing a distinct and identifiable task for a fixed period involving specialist skills.
Employers are required to provide a Fair Work Fixed Term Contract Information Statement to all employees entering a fixed term contract.
Employers should be aware that there could be issues terminating an employee on a fixed term contract during the ‘currency’ of that contract. Such contracts require special termination clauses enabling termination to take place. Additionally, employees on fixed term contracts do accumulate leave.
These changes take effect from December 2023.
Give me a call to update all your employment contracts – permanent, casual, fixed term, staff and management.
Kind Regards
Michael Schmidt
M 0438 129 728
www.hunteremployeerelations.com.au
Industrial Relations - Employment Law - Workplace Performance
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