Commencing December 6 2023, employers are required to provide employees entering into new fixed-term contracts with a Fixed Term Contract Information Statement (FTCIS).

These new regulations come into effect for the engagement of employees on fixed-term contracts. A fixed-term contract terminates at the conclusion of a specified period and encompassing agreements where the employee is engaged for a specific period.

The updated regulations encompass the following:

• A mandate for employers to provide a Fixed Term Contract Information Statement (FTCIS) to employees entering into new fixed-term contracts.
• Limitations on the utilisation of fixed-term contracts.
• There are exceptions to the application of these rules.

The FTCIS will be accessible for download from the Fair Work Australia website from December 6 2023. This information statement must be given to employees before commencement of employment or at the earliest opportunity thereafter.

Limitations on the use of Fixed-Term Contracts

Commencing December 6 2023, specific rules (referred to as limitations) govern the use of fixed-term contracts post this date. Three rules, all of which must be adhered to, pertain to the below:

• The maximum duration of a fixed-term contract (time limitation).
• Renewal of a fixed-term contract, including the permissible number of renewals (renewal limitations).
• Employing an individual on successive contracts (consecutive contract limitations).

Time Limitation

A fixed-term contract cannot exceed a duration of 2 years, encompassing extensions and renewals.

For further details, please visit Fair Work Australia or reach out to us on 07 3360 9600.