Fixed-Term Employment Contracts Limited to Two Years

From 6 December 2023, employers must give employees they’re engaging on new fixed term contracts a Fixed Term Contract Information Statement (FTCIS). The FTCIS will be available to download from the Fair Work Ombudsman’s website from 6 December 2023.

This information statement must be provided to employees before they start employment, or as soon as possible after.

From 6 December 2023, employers can no longer employ an employee on a fixed-term contract that:

• is for 2 or more years (including extensions)

• may be extended more than once, or

• is a new contract:

o that is for the same or a substantially similar role as previous contracts

o with substantial continuity of the employment relationship between the end of the previous contract and the new contract, and either:

• the total period of the contracts is 2 or more years,

• the new contract can be renewed or extended, or

• a previous contract was extended.

The changes were introduced as part of the Pay secrecy, job ads and flexible work amendments. See the Fair Work Ombudsman’s website here for more details.