From 6 December 2023, new rules apply to the use of fixed term contracts. An employee on a fixed term contract is employed for a specific period.
The changes include new rules about:
- how long fixed-term contracts can be
- extending fixed-term contracts
- offering new contracts that are substantially similar to previous contracts.
Learn about the new rules and any exceptions that apply here.
Fixed Term Contract Information Statement
From 6 December 2023, employers must give employees they’re engaging on new fixed term contracts a Fixed Term Contract Information Statement (FTCIS). It will be available to download from the Fair Work Ombudsman website on that date.
The FTCIS must be provided to employees before, or as soon as possible after, they enter into a new fixed term contract.
Fair Work Information Statement
In addition to the FTCIS, employers need to provide new fixed term contract employees with the Fair Work Information Statement. This is a separate document that provides information about minimum workplace rights and entitlements. For more information see Fair Work Information Statement.
The bottom line: These amendments will limit fixed term contracts being used for the same role beyond two years or two contracts – whichever comes first.
IR reforms
Businesses also need to stay across changes introduced in the Fair Work Legislation Amendment (Closing Loopholes) Bill 2023.
Not sure what these changes are? Download this infographic from Australian Business Lawyers & Advisors for a summary of the reforms.