Silly Season Can Mean Fixed Term Employment Contracts?– Changes from 6 December 2023

Many businesses use fixed term employment contracts to cover periods of particular need, that may not continue long term, such as over Christmas / New Year, or at other heavy periods depending on industry/workplace. It is a practical solution for many businesses.

However, there are multiple laws that govern how they can be used and on what terms.

Next week (on 6 December 2023) changes to the Fair Work Act 2009 (Cth) come into force that affect these contracts.? ?

What are the changes??

The changes mean that employers will not be able to engage employees on a fixed-term contract if:?

1. the contract is for more than two years (including the time of any extension or renewal of the contract);?
2. the contract includes an option to extend or renew more than once, or for a period of more than two years;?or
3. the contract would result in an employee having multiple fixed term contracts where the employee would be doing the same or similar work that would add up to more than two years.?

Only contracts entered into after on or after 6 December will be subject to the changes.

Exceptions to be aware of:?

There are some exceptions to the above limits that include:?

1. the employee is engaged to perform only a distinct task involving specialised skills;?
2. the employee is engaged to undertake essential work during a peak demand period;?
3. the employee is engaged to perform work during emergency circumstances or during a temporary absence of another employee; or?
4. the employee earns above the high income threshold in the year the agreement is entered into.?

Further exceptions recently came into force for contracts entered into on or after Wednesday, 6 December and before 1 July 2024.? These exceptions apply to organised sports, live performance industry employees, philanthropic entities and higher education employees.? There is an exemption of the restrictions for these areas, until 1 July 2024.? ?

Disputes

Should a dispute arise, you must first try to resolve the dispute in the workplace by discussion between the employer and employee.? If unresolved, either side can then refer the dispute to the Fair Work Commission. If both parties agree, the Fair Work Commission can arbitrate (make a decision) on the dispute.?

If you would like to discuss if these changes affect you or your business, and how they may affect any current or future fixed-term contracts, then please do not hesitate to contact Catriona Macleod .?At Cullen Macleod we have a specialist team of consultants and in-house people to assist you with your employment disputes.