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New Fixed Term Contract Rules Take Effect in December 2023

A revised version of the Fixed Term Contract Information Statement (FTCIS) has been released, reflecting recent changes to the regulations governing fixed term contracts. These changes, which took effect on December 6, 2023, introduce limitations on the use of fixed term contracts, including time constraints, restrictions on renewals, and limitations on consecutive contracts.

Employers must now navigate these new rules carefully as they apply to fixed term contracts initiated on or after November 1, 2025. The updated regulations include specific exceptions that apply to certain sectors, although many of these exceptions were previously temporary.

Key Changes to Fixed Term Contract Regulations

Starting on November 1, 2025, significant changes will be implemented regarding additional exceptions for fixed term contracts. The new rules indicate that there will no longer be additional exceptions for specific fixed term contracts in designated sectors. Consequently, the limitations on fixed term contracts will apply unless another valid exception is identified.

For instance, exceptions may still be relevant for employees governed by the Higher Education Academic Staff Award and the Higher Education General Staff Award, contingent upon specific circumstances. Furthermore, the temporary exceptions that were in place have been extended until November 1, 2026 in certain sectors, allowing continued flexibility for employers and employees alike.

Additionally, new thresholds concerning employers’ total annual revenue have been introduced for the application of exceptions in these sectors. These thresholds will only apply to fixed term contracts entered into after November 1, 2025.

Implications for Employers and Employees

With these adjustments, the FTCIS now serves as a crucial resource for fixed term employees, providing essential information about their employment rights and the rules surrounding the issuance of fixed term contracts. A fixed term contract is defined as one that concludes at the end of a specified period, whether that be a set date, a predetermined duration, or a seasonal timeframe.

Employers are required to provide fixed term employees with the version of the FTCIS that is current at the time the contract is established. Should a contract commence after November 1, 2025, the most recent version of the FTCIS must be supplied.

For those seeking to stay informed about these changes in workplace laws, subscribing to email updates is recommended. This service allows individuals to receive timely notifications regarding updates that may affect their employment conditions. Additionally, following relevant social media channels can provide further announcements and reminders about these regulatory changes.

The introduction of these new rules marks an important evolution in employment standards, emphasizing the need for clarity and protection for fixed term employees across various sectors.

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