The Secure Jobs, Better Pay Bill amendments to the Fair Work Act gives employees new workplace rights around fixed term contracts.
A fixed term contract is a contractual arrangement between an employee and an employer that lasts for a specified period of time. Arrangements of this nature typically have a start and finish date specified on the contract. As the employment concludes on a specified and agreed date, employers and employees generally don’t need to give notice or take any action to terminate the relationship.
Fixed term contracts have traditionally offered employers benefits in certain situations. These include:
From 6 December 2023, employers can no longer employ an employee on a fixed term contract that:
Employers must not take certain actions to avoid the new restrictions from applying. For example, they can’t:
Some exceptions will apply, including if the fixed term contract is:
From 6 December 2023, employers will have to give employees they’re engaging on new fixed term contracts a Fixed Term Contract Information Statement. This statement will be available on the Fair Work Ombudsman website before this date.
Disputes about the new requirements will be heard by the Fair Work Commission. Employees will also have access to small claims court too, should they elect to take civil action instead.
While employees will still have the opportunity to utilise fixed-term contracts, the ongoing use of these employment arrangements will be more strictly regulated with the introductions of the new laws.
Employees currently on fixed term contracts? Need to know what your options are in preparation for the new Fair Work Act laws kicking in from 6 December? Give Bare Bones Consulting a call. We’ll fix things for you!
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