Fixed Term Contract Information Statement

Employers must give this document to new fixed term employees when they start work.
See fairwork.gov.au/ftcis

Important: New employees also need to be given the Fair Work Information Statement. Visit fairwork.gov.au/fwis

For help in your language visit fairwork.gov.au/language-help

Summary What are the limitations on using fixed term contracts?

There are rules that limit the use of fixed term contracts. From 6 December 2023, there are rules (called limitations) about the
From 6 December 2023, employers can’t employ someone use of fixed term contracts after this date. If any of these rules are not
on a fixed term contract: followed, the contract won’t end automatically on the end date specified
in the contract.

1: Time limitations
A fixed term contract can’t be for longer than 2 years. This includes any
There are exceptions to the rules that mean they don’t apply to extensions or renewals.
all fixed term contracts.
These rules don’t apply to casual employees. 2: Renewal limitations
Read this statement to find out more. A fixed term contract can’t have an option to:
 extend or renew the contract so that the period of employment lasts
Contracts before 6 December 2023 longer than 2 years, or
These rules apply to new contracts entered into after
 extend or renew the contract more than once.
this date. However, fixed term contracts entered into before
6 December 2023 do have to be considered when applying the
Example: Renewal limitations
consecutive contracts limitation for a new fixed term contract
entered into on or after 6 December 2023. Chelsea is given a contract for 6 months which has a right for her
employer to extend it twice for up to 4 months each time.
What is a fixed term contract? This contract breaches limitations because a fixed term contract
You’re on a fixed term contract if you enter into a contract with can’t have an option or right to extend it more than once, even if
an employer that terminates at the end of an identifiable period. the total period is less than 2 years.
For example, the contract ends after:
 a set date or period of time, or 3: Consecutive contract limitations
 a season. Employees can’t be offered a new fixed term contract if all points from
Employees engaged on fixed term contracts who are engaged Column A apply and one or more points from Column B apply:
on a full-time or part-time basis have similar conditions and
Column A Column B
entitlements as permanent (ongoing) employees. This includes All points apply One or more points apply
leave entitlements.
 The previous contract was  The previous contract had an option to
Casuals can be employed on fixed term contracts except for also for a fixed term. extend that was used.
certain higher education roles not in the state public sector.
 The previous contract and  The total period of employment for both
There are 2 main differences between full-time or part-time the new contract are for the previous and new fixed term contract is
fixed term employees and permanent employees: mainly the same work. more than 2 years.
 There is substantial  The new fixed term contract contains an
Fixed term Permanent
continuity in the option to renew or extend.
Notice of ✖ Not eligible if ✔Generally entitled employment relationship  There was an initial contract in place
termination employment to notice of between the previous and (before the previous contract):
and finishes at the end termination and new contracts.
- that was for a fixed term, and
redundancy of the contracted redundancy
- that was for the same or similar work, and
period
✖ Generally not ✔Eligible for unfair
- where there was substantial continuity in
the employment relationship.
eligible if dismissal
Unfair employment after 6 months
dismissal finishes because of (12 months for Example: Consecutive contracts
the end of the employees of a Ahmad was employed on a one year fixed term contract as a site
contracted period small business) engineer for a construction company. The contract included a one
For more information on fixed term employment, year extension option, which his employer used. At the end of the
visit fairwork.gov.au/fixed-term-employees contract extension, Ahmad signed a new fixed term contract for
one more year for the same position.
This contract breaches the limitations for reasons including:
Fixed term employees are not the same as independent
contractors (sometimes called ABN workers or
subcontractors). Independent contractors usually negotiate his initial contract had an option to extend that was used by his
their own fees and working arrangements, have the ability employer, and
to delegate or subcontract work and can work for more
than one client at a time. For information on independent
contracting, visit fairwork.gov.au/contractors

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 Fixed Term Contract Information Statement
Employers must give this document to new fixed term employees when they start work.
See fairwork.gov.au/ftcis

What are the situations where there are no limitations on the use of fixed term contracts?
The rules (outlined on the previous page) don’t apply to all employees on fixed term contracts. These are called the exceptions to
the limitations. The table below shows which fixed term contract arrangements are not covered by the rules:
The exception Example

Specialised skills for a specific task Vivian is a technology professional who is engaged to provide specialised
technology support on a particular project. Her contract is for a period of
Work only on a specific task that requires your specialised skills.
6 months, with 3 options to extend for one month in case of delays.

Training arrangements
A contract for a formal training arrangement made under State or Javier has started a plumbing apprenticeship and has been given a 4 year
Territory law. This is an arrangement that combines work with study for a fixed term contract for the duration of his apprenticeship.
qualification like an apprenticeship or traineeship.

Kevin is an experienced ski patroller with strong first aid skills. He is

Essential work hired by a ski resort on a 2 month contract during the ski season, with
Performing essential work during a peak demand period. the opportunity for 2 renewals of one month each depending on
ski conditions.

Emergency circumstances or temporary replacement Gerry is engaged on a fixed term contract to replace Christina who is taking
of an employee 24 months parental leave. During this time, Christina has another child and
Working in emergency circumstances, or if you’re replacing someone who takes an additional 12 months leave. Gerry’s contract is renewed for an
is temporarily away. additional 12 months to cover this leave period.

High-income employees
If your guaranteed salary is more than the high-income threshold in the
Esther is hired as an IT project manager earning $240,000 per year
year the contract is entered into. For information on how the high-income
on a 3 year fixed term contract.
threshold is calculated for part-time or part-year employees, go to
fairwork.gov.au/fixed-term-employees
Positions dependant on funding from the government
Lu works for a community organisation. She is engaged on a 3 year fixed
Where the employee’s position is funded by government funding term contract to help create a community garden and outdoor space.
(completely or in part), the funding is for more than 2 years and the
The project is fully funded over 3 years by the local government and the
funding is unlikely to be renewed. This isn’t the same as working for funding ends at the end of this period.
a government agency or department on a fixed term contract.

Governance positions
Sunita has been given a 5 year contract as an executive on a board
A contract for a governance position, such as a position on a board, that is of directors for a land-management council.
for a limited time (based on the rules of the corporation or association).

Award provisions
Ravi is a weekly company dancer covered by the Live Performance
If an award covers your employment and it allows any of the
Award. Ravi is engaged on a series of consecutive fixed term contracts
circumstances limited by the rules. To see a list of all awards,
for 2.5 years in accordance with the rules in the award.
visit fairwork.gov.au/listofawards

Additional temporary exceptions for contracts under the Fair Work Regulations
These temporary exceptions are explained below and only apply if the contract is entered into before 1 November 2025. For more
information on the Fair Work Regulations visit fairwork.gov.au/fixed-term-employees

Temporary exception

Higher education employees: Employees covered by the Higher Education Industry – Academic Staff - Award or the Higher Education Industry – General Staff - Award.

Charity and not-for-profit sector: Some employees engaged for a specific program or project and whose performance of work is funded (wholly or in part) by a
government grant or procurement (with some exceptions), by certain philanthropic entities, or as a result of a testamentary gift or contributions provided for certain
charitable purposes.

Organised sport: Some types of employees engaged by particular organised sporting bodies primarily to work as certain types of athletes, coaches, performance support
professionals or match officials.

Medical or health research: Some employees engaged for a specific program or project, whose performance of work is funded (in whole or in part) by government
funding, by certain philanthropic entities or for certain charitable purposes, and whose work primarily involves carrying out certain types of medical or health research.

High performance sport (international events): Some types of employees engaged by certain types of organisations to primarily directly support the administration or
organisation of an international event for a high performance sport that is not regularly held in Australia.

Public hospital employees: Some employees engaged to work on a particular project or program for certain public hospitals and where the performance of work is
funded in majority by certain philanthropic entities or for certain charitable purposes.

Page 2 of 3 Last updated: November 2024

 Fixed Term Contract Information Statement
Employers must give this document to new fixed term employees when they start work.
See fairwork.gov.au/ftcis

What happens if a contract doesn’t meet the limitations and exceptions rules?
If your fixed term contract doesn’t meet the rules, the end date in the contract will no longer apply. This means the contract won’t
automatically come to an end at the end of the contracted period. This will not affect the validity of any other terms of your contract.
If the limitations are breached, civil penalties could apply to an individual or a company.

What happens if my employer and I disagree about whether a limitation or an exception applies to my
fixed term contract?
If you and your employer disagree about whether the limitations or exceptions apply, there are steps you can take to resolve it.

Step 1: First, you must try to resolve the disagreement with your employer by discussing the issue with them.

Step 2: If you can’t resolve it at the workplace level, you or your employer can refer your dispute to the Fair Work Commission
(the Commission). The Commission can deal with disputes about the limitations and exceptions on fixed term contracts.

If the matter is referred to the Commission, they must deal with the disagreement. They can deal with the disagreement in a range of ways
including mediation or conciliation. If both parties agree, the Commission can deal with the dispute by arbitration (for example, at a hearing).
Depending on your circumstances, you may be able to have someone to support or represent you through the dispute process (which could
include a union entitled to represent you).

Evidence
In a formal proceeding (such as a hearing at the Commission), if an employer believes a fixed term contract meets the criteria of
one of the exceptions, they will have to show evidence to support that the exception applies. Examples of evidence can include
financial reports or other contracts, such as funding and commercial contracts.

Get help with conversations in the workplace

Find free online courses to help you have difficult conversations in the workplace at fairwork.gov.au/learning

Can my employer avoid following the rules?

Your employer can’t do certain things to avoid the rules. These are called the anti-avoidance protections. This includes:
 ending your employment or not re-employing you for a period of time
 employing someone else to do the same or substantially similar work instead of you, or
 changing the type of work or tasks that you do or changing your employment relationship.

If an employer does any of these things in order to avoid the rules, it may also be adverse action. Adverse action is where an employer takes
an unlawful action against you because you have a workplace right (which includes the fixed term contracts rules). If adverse action is found
to have occurred, civil penalties could apply. For more information, visit fairwork.gov.au/protections

Who can help?

Fair Work Ombudsman Fair Work Commission

 has information and advice about pay and entitlements  deals with disputes about a range of issues, including unfair
 provides free calculators, templates and online courses dismissal, bullying, sexual harassment, discrimination and
 helps fix workplace problems ‘adverse action’ at work
 enforces workplace laws and seeks penalties for breaches  approves, varies and terminates enterprise agreements
of workplace laws.  makes, reviews and varies awards
 issues entry permits and resolves industrial disputes
 regulates registered organisations.

Visit fairwork.gov.au or call 13 13 94. Visit fwc.gov.au or call 1300 799 675.

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