Significant changes are coming in relation to employment contracts.
From 6 December 2023, employers can no longer employ an employee on a fixed term contract that:
- is for 2 or more years (including extensions); or
- may be extended more than once, or
- is a new contract that is for the same or a substantially similar role as previous contracts.
Where a fixed term contract is made in breach of the new provisions, the employee will be considered a permanent employee.
The term of the contract that provides for its expiry on a set date will be of no effect, but otherwise the contract would be valid.
Some exceptions will apply, including if the fixed term contract is:
- for a training arrangement, or
- the employee is covered by an award that allows fixed term contracts in the above circumstances.
Employers must not take certain actions to avoid the new restrictions from applying.
Employers who breach the contract limitations or do not provide a Fixed Term Information Statement may be subject to civil penalties.
If you have any questions about any of these changes and how it may affect you, please contact WGC.