Fixed and Maximum Term Contract restrictions have started... for most

For most businesses, the restrictions on the use of fixed and maximum term contracts have already become operative as of 6 December 2023.

However, for businesses in the organised sports, live performance, philanthropic entities and higher education industries you will have until 1 July 2024 for the restrictions to take effect following some recent amendments pushed through by the Labor government in regulations.

In practical terms when the restriction applies (as per the above operative dates) Employers can no longer engage employees on a fixed term contract:

1. for more than 2 years (either through a single contract or consecutive agreements); or

2. on more than 2 consecutive fixed or maximum term contracts (regardless of their length); and

3. without providing them a fixed Fixed Term Contract Information Statement in addition to the Fair Work Information Statement

Unless:

1. a Modern Award specifically allows it;

2. the person earns above the high-income threshold ($167,500) when the contract is entered into;

3. it relates to a training agreement; or

4. the role is for a true, fixed-term purpose such as to cover during emergencies, peak periods or temporary staff absences, to perform a particular task, or where the work is government-funded for more than 2 years and there is no reasonable prospect of funding being renewed.

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