New rules for fixed term contracts
As part of the Australian Government’s Secure Jobs, Better Pay workplace law changes, rules about using fixed term contracts are changing on 6 December 2023.
What's changing
From 6 December 2023, new rules apply to the use of fixed term contracts.
An employee on a fixed term contract is employed for a specific period.
The changes include new rules about:
• how long fixed term contracts can be
• extending fixed term contracts
• offering new contracts that are substantially similar to previous contracts.
There are some exceptions to these rules that apply.
Learn more at New rules for fixed term contracts.
Fixed Term Contract Information Statement
From 6 December 2023, employers must give employees they’re engaging on new fixed term contracts a Fixed Term Contract Information Statement (FTCIS).
The FTCIS will be available to download from the Fair Work Ombudsman website on that date.
The FTCIS must be provided to employees before, or as soon as possible after, they enter into a new fixed term contract.
Reminder: Fair Work Information Statement
In addition to the FTCIS, employers need to provide new fixed term contract employees with the Fair Work Information Statement. This is a separate document that provides information about minimum workplace rights and entitlements. For more information see Fair Work Information Statement.
Sunsetting on 'zombie agreements'
On 7 December 2023, certain agreements made before 2010 that are still in operation (‘zombie agreements’) will automatically terminate (‘sunset’) unless an application is made to the Fair Work Commission before 7 December 2023 to extend their operation.
It is important for you to know if this affects you.
If a ‘zombie agreement’ sunsets, the legal minimum pay and conditions for employees that were covered by that agreement are very likely to change.
To find out more:
You can also visit the Fair Work Commission website for information about:
Now is a great time to make sure that your pay rates, contracts of employment and any other documents are up to date and correct. The TCCI is here to assist from payroll audits to document review and anything in between.
Contact us on 1300 559 122 or email hr@tcci.com.au