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New rules now apply to Fixed Term Contracts

Effective December 6, 2023, revised regulations are now in place for the utilisation of fixed term contracts for employees.

A fixed term contract terminates at the conclusion of a predetermined period, such as a specific date, a set duration, or the conclusion of a particular season.

A summary of the new rules are:

  • an employer cannot employ someone on a fixed term contract that is longer than 2 years;

  • that has more than one extension of contract; or

  • where the employee will be employed under consecutive contracts.

Exceptions to the new rules are:

  • You employee casual employees

  • You employee someone who has specialised skills for a specific task

  • Training arrangements are in place such as an employee completing an apprenticeship or traineeship.

  • Essential Worker during a peak demand period

  • Working in an emergency situation or replacing someone who is temporarily absent.

  • Employees over the high-income threshold

  • The position is subject to Government Funding

  • Is a Governance position

  • The relevant Award has provisions that vary the new rules.

It is important to note, should you employee someone on a fixed term contract you must provide them with a copy of the Fixed Term Contract Information Statement when they start work (in addition to a copy of the Fair Work Information Statement).

If you employee fixed term staff, we highly recommend you click here and read through the Fixed Term Contract Information Statement to give you further information in regards to the new rules.

For advice please contact Essential HR via

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