Fixed-term contracts

Fixed-term contracts are subject to legislative requirements and may only be used where permitted under the Fair Work Act and the Enterprise Agreement.

Before requesting a fixed-term contract extension, refer to the Fixed-Term Contract frequently asked questions below and the Fair Work Fixed-Term Contract Information Statement for information on legislative requirements, contract limitations, and permitted exceptions relating to fixed-term employment.

Employment arrangements must not commence until all required approvals have been obtained and the contract has been issued to and signed by the employee.

Frequently asked questions

  • What is fixed-term contract?

    A fixed-term contract is an employment contract that ends on a specified date, after a specified period, or upon completion of a particular task or project.

  • What is the maximum length of a fixed-term contract?

    Generally, a fixed-term contract to fill a position cannot be renewed more than once and cannot be longer than 2 years. This 2-year period includes any extensions or renewals agreed to under the contract.

    Example:

    • 12-month contract + 12-month extension = permitted (total 2 years).
    • 2-year contract + 12-month extension = not permitted.

  • Can I include an option to extend or renew a fixed-term contract?

    Yes, but only within the legislative limits.

    A fixed-term contract cannot have an option to:

    • extend or renew the contract so that the total period of employment exceeds 2 years, or
    • extend or renew the contract more than once.

    Example:

    • 1-year contract with one 1-year extension option = generally permitted.
    • 1-year contract with two separate extension options = not permitted.

  • Do the rules apply to all employees

    No. There are several exceptions under the Fair Work Act where the limitations may not apply. These must only be considered in consultation with People Services.

  • Can a fixed-term employee be offered an ongoing position?

    Yes. The legislation does not prevent an employer from offering a fixed-term employee an ongoing position however operational requirements (including budget and workforce considerations) will still apply and need to be addressed before the University approves an ongoing position.

  • What should People leaders do before requesting a fixed-term appointment?

    Leaders should consider:

    1. Whether the role is genuinely fixed term.
    2. Whether the total employment period will exceed 2 years.
    3. Whether more than one extension would be required.
    4. Whether there have been previous contracts for the same employee and role.
    5. Whether other employees are performing the same or substantially similar duties on a continuing contract.
    6. Whether a legislative exception applies. (advice from People Services will be required)
    7. Whether an ongoing appointment may be more appropriate.

  • What are Anti-Avoidance measures?

    Pursuant to s333H, employers cannot engage in behaviour that is designed or intended to avoid the fixed-term contract limitations contained in section 333E.

    Avoidance behaviour can include:

    • terminating an employee’s employment for a period;
    • delaying re-engaging an employee for a period;
    • engaging another person to perform the same, or substantially similar work for the person as the employee had performed;
    • changing the nature of work or task the employee is required to perform for the person; or
    • otherwise altering the employment relationship.

    Always consult People Services through the P&C portal where there is uncertainty about whether a fixed-term appointment meets the legislative requirements.