Fixed Term contracts
As part of the Government’s “Secure Jobs, Better Pay” changes, new rules about fixed term contracts come into operation on 6 December 2023. The changes do not outlaw or invalidate contracts that were entered into before the rules commence, so there is a window for employers to sign new contracts with their employees before 6 December 2023.
Under the new rules:
- a fixed term contract can’t be for longer than 2 years;
- a fixed term contract can’t have an option to:
- extend or renew the contract so the employment period (including the extension or renewal period) is longer than 2 years, or
- extend or renew the contract more than once.
- an employer can’t employ someone on a new fixed term contract if:
- the contract is for mainly the same work as a previous fixed term contract;
- there isn’t a substantial break in the employment relationship between the previous and new contracts; and
- any of the following apply:
- the total period of employment for the previous contract and the new fixed term contract is more than 2 years, or
- the new fixed term contract can be renewed or extended, or
- the previous fixed term contract was extended, or
- there was an initial fixed term contract in place (before the previous contract) that:
- was for mainly the same work, and
- there was continuity of the employment relationship from the period of time (if any) between the initial contract and the previous contract.
There are a number of exceptions that apply, including for government-funded contracts and for workers with specialised skills. Further details can be found on the Fair Work Ombudsman’s website.
Once the new rules commence, employers who enter into a fixed term contract must provide workers who are on a fixed term contract a Fixed Term Contract Information Statement. The statement is not yet released but will be available for download from the Ombudsman’s website on 6 December 2023.
Changes to Salary Deductions
These rules commence on 30 December 2023 and allow employees to authorise salary deductions that are recurring and are for amounts that vary from time to time. Under the existing rules, any variation in the amount of a deduction needs to be specifically authorised in writing.
However, variable deductions are prohibited if the deduction directly or indirectly benefits the employer or a party related to the employer, with limited exceptions. Employees can also specify an upper limit when authorising a deduction that may vary from time to time.
Download the fact sheet from the Department of Employment and Workplace Relations for more information.
Adding superannuation to the National Employment Standards
From 1 January 2024, the right to superannuation will be added to the National Employment Standards.
This change will not alter the amount of superannuation to which an employee is entitled but will mean that more employees have the ability to apply to a court to enforce payment of superannuation contributions. This change won’t affect most employees (who already have rights to enforce superannuation under modern awards) but will assist employees who are employed outside the award framework.
