Fixed-term employment contracts limited to 2 years

November 11, 2023

From 6 December 2023, some fixed-term contracts will no longer be allowed

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:


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


         • 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 for more details.