The Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 (Cth) was made into law last year, resulting in a breadth of employment and industrial relations (IR) reforms. Here is what you need to know about changes to fixed-term employment contracts.
7 December 2023: Fixed-term contracts will be limited to two years
Subject to certain exceptions, it will be unlawful for an employer to enter into a fixed-term contract with an employee where:- the term of the contract is greater than two years; or
- the original term of the contract plus any renewal period is greater than two years; or
- there is an option or right to renew the contract more than once (irrespective of the period of the original term and the term of any renewals).
- the employee is engaged to perform only a distinct and identifiable task involving specialised skills
- the employee is a trainee engaged under a training arrangement with an RTO
- the employee is engaged to undertake essential work during a peak demand period
- the employee is engaged to undertake work during emergency circumstances or a temporary absence of another employee
- in the year the contract is entered into, the employee's earnings under the contract exceed the high-income threshold for that year
- the contract is for a position funded in whole or in part by government funding; the funding is payable for more than two years, and there are no reasonable prospects that the funding will be renewed.
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