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Changes for Fixed-Term Employment Contracts
Changes to fixed-term Employment Contracts are in effect from 6 December.
Effective 6 December 2023, there are noteworthy changes to the Fair Work legislation concerning fixed-term Employment Contracts. It's crucial for all of us in the legal field, particularly those handling employment matters, to stay informed and prepared. Below is a summary of the changes and the updates we have made to the automated Employment Contract in Smarter Drafter.
Key Changes You Need to Know:
- New Limits on Contract Duration: The era of extended fixed-term contracts is shifting. From 6 December these contracts are now limited to a maximum of two years, with other restrictions relating to renewals and extensions. This change aims to enhance job security and reduce uncertainty.
- Restriction on Consecutive Contracts: An important alteration is the limitation on successive fixed-term contracts. An employee can no longer be engaged in more than two consecutive contracts for identical or similar roles, barring specific exceptions. This move is designed to prevent the potential exploitation of short-term contracts.
- Mandatory Information Statements: Compliance with information dissemination becomes more stringent. Every employee, whether on a fixed term or otherwise, must receive the Fair Work Information Statement. Furthermore, those on fixed-term contracts require an additional Fixed Term Contract Information Statement, available from 6 December.
Updated Employment Contract
In response to these changes, we've updated our automated Employment Contract in Smarter Drafter. This ensures that any fixed-term contract generated through our platform adheres to the new legal framework, particularly regarding the duration of fixed-term agreements. The updated Employment Contract is available now.
Guidance and Resources
While we have updated the contract and added onscreen guidance, for detailed information we always recommend that you review each contract individually and refer to Fair Work Australia's resources.