Fixed term employment contract | Practical Law

Fixed term employment contract | Practical Law

Fixed term employment contract

Fixed term employment contract

Practical Law ANZ Glossary w-001-8216 (Approx. 3 pages)

Glossary

Fixed term employment contract

At its highest level, a "fixed term employment contract" is a contract for a specified term that automatically ends when the term expires. The term of a fixed term employment contract can be defined by reference to:
  • A specific start and end date.
  • A specific period of time.
  • An event happening.
  • A set project.
At the federal level, there are different types of fixed term employment contracts depending on:
  • The existence, and scope, of a contractual provision allowing for the termination of the contract before the specified term automatically expires. A:
    • "true" fixed term employment contract does not contain a broad or unconditional right of either party to terminate the contract during the specified term;
    • maximum term employment contract (also sometimes known as maximum duration or outer time limit employment contract) does contain a provision providing one party, or both parties, with a broad or unconditional right to terminate the contract during the specified term.
  • The regulatory framework being applied to the relevant contract, with the Fair Work Act 2009 (Cth) expressly referring to:
    • contracts for a specified period, task or season in various sections. This statutory language has generally been interpreted to refer to "true" fixed term employment contracts; and
    • contracts that terminate at the end of an identifiable period, for the purpose of imposing requirements and limitations on the use of such contracts.
For detailed guidance on: