Fixed-term employment contracts limited to 2 years

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 for more details.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.