As one of the final changes of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022, there are incoming changes to how an employee can be engaged on a fixed-term contract.

A fixed-term contract refers to an employment contract wherein an employee is engaged for a set period with a specified end date to their employment. Under the new provisions, any new fixed-term contracts can’t be for a period of more than two years, including contract renewals or extensions. While pre-existing contracts will still endure, any contract renewals or extensions of an existing contract will fall under the new provisions.

As part of these changes, from 6 December 2023, all employers must provide new employees on a fixed-term contract with a copy of the newly released Fixed Term Contract Information Statement prior to or as soon as possible after they commence employment. This must be provided along with the Fair Work Information Statement. This statement will provide a new employee with essential information about the terms and conditions of their fixed-term employment, including the maximum duration of employment on this basis, how it may be extended, what exceptions exist to the new provisions and any conditions associated with the conclusion of the contract. 

This information statement is now accessible on the Fair Work Ombudsman’s website at the following link: https://www.fairwork.gov.au/employment-conditions/information-statements/fixed-term-contract-information-statement

Advice for Members

There are significant changes to how employees on a fixed-term contract can be engaged. It is strongly recommended to review how employees are employed on these contracts to maintain compliance.
If new fixed-term contract employees are engaged from 6 December, their employer must provide the new Fixed Term Contract Information Statement. Failure to do so will result in a breach of the National Employment Standards under the Fair Work Act 2009, and, therefore may incur financial penalties.

For more information, call 1300 143 602 or email hrhotline@osteopathy.org.au

Disclaimer

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