The Fair Work Act 2009 (Cth) limits the use of fixed term contracts entered into on or after 6 December 2023.
Exceptions apply and the limitations do not apply to casual employees.
If a fixed term contract has a prohibited term, it will have no effect and penalties may be imposed on an employer. Anti-avoidance provisions prohibit employers from making changes to the timing or terms of a fixed term contract if one of the reasons for doing that includes to avoid the limitations. Employees (and prospective employees) may seek compensation orders in certain circumstances. If a party makes an application, the Fair Work Commission may assist in resolving a dispute.
Employers must give employees a Fixed Term Contract Information Statement before, or as soon as practicable after, they enter into a fixed term contract. The Fixed Term Contract Information Statement is produced by the Fair Work Ombudsman and available here.
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