Fixed-term employment contracts limited to 2 years

Fixed-term employment contracts limited to 2 years

construction, worker, contractor

construction, worker, contractor

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.

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