Introduction to New Regulations

Starting December 6, 2023, significant changes will be implemented regarding the engagement of employees on fixed term contracts. This article provides a detailed guide on what these changes entail and how they will impact both employers and employees.

Fixed Term Contract Basics

Fixed term contracts are those that terminate at the end of a specified period. From the specified date, employers must adhere to new regulations when engaging employees under these contracts.

Mandatory Fixed Term Contract Information Statement (FTCIS)

A key change is the introduction of the FTCIS. Employers are required to provide this statement to employees before they commence employment or as soon as possible thereafter. The FTCIS will be available for download from our website starting December 6, 2023.

New Limitations on Fixed Term Contracts

These limitations, effective from December 6, 2023, include:

Time Limitation: A fixed term contract, including extensions and renewals, cannot exceed a duration of 2 years.
Renewal Limitations: Contracts cannot be extended or renewed more than once, nor can they be structured to extend the total employment period beyond 2 years.
Consecutive Contract Limitations: Employers are restricted from employing someone on a new fixed term contract for mainly the same work without a substantial break, especially if the total employment period exceeds 2 years or if the contract includes options for extension or renewal.

Exceptions to the New Rules

Certain situations exempt employers from these limitations, such as contracts requiring specialized skills, training arrangements under state or territory laws, essential work during peak demand periods, emergency circumstances, high-income employees, government-funded contracts, governance positions, and specific award provisions.

Consequences of Non-Compliance

Contracts that fail to comply with these new regulations will no longer have a valid end date, although other terms and conditions, including entitlements from any relevant legislation, award, or agreement, will still apply.

About the Author

Tracy Angwin

Tracy has a background working with payroll vendors and payroll professionals and has spent the last 25 years trying to get one to make sense of the other.

Originally a dairy farmer’s daughter, Tracy is a full-time CEO and one-time dinner date of Boy George. Tracy leads the team at Australian Payroll Association, who prefer her out of the office where she can’t cause havoc and that’s just how she likes it.

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Highly recommend Tracy and team. They continue to keep us up to speed with all legislative changes. Webinars and presentation documents are very useful. Thank you for your professional service.

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The class was very flexible to follow the attendance needs even we have a text Book to follow. Some people were excited to discuss own problems. But some times caused run out the planned work time. In total impression was very good. Friendly and easy to rise the questions.

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The End of Year Webinar was really helpful. It was a great opportunity to just refresh ourselves on those 'once a year' tasks and be sure that we were up to date with any changes to the payroll landscape throughout the year. The webinar format was perfect. It's a busy time of year for all and being able to remote in meant that the whole team could easily attend. Thanks for the invitation!!

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Maria is fantastic! Very informative and runs an engaging seminar or class. The Australian Payroll Association are a great support to have.

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absolutely worth every minute spent , this was an experience that I didn't think I needed after many years in payroll, but the networks built since the day were an added bonus. The day was informative and well set out.

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It was a very useful and interesting training. Not borning at all, you can learn a lot in such a short time from the easily understandable material & listen opinions from experienced payroll staff from other companies.Definitely will attend next year. Hope the food will be better:)

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APA are great to deal! A fantastic resource for any Payroll Department. I have also completed my Certificate IV in Payroll Administration with them and now looking to do the Diploma. If you ever get a chance to attend one of their conferences, I highly recommend - the likes of Tracey and Maria are very engaging and knowledgeable speakers.

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Australian Payroll Association (APA) has been very instrumental in my career, specifically Andy Thompson. Andy has helped me get into the position that I'm currently in at one of the most reputable firms in Australia. He has always been very encouraging and supportive of me, and values my experience and skill set. He is one of my biggest advocates and helped steer me in the right direction with my career. I also use APA to assist with any ongoing payroll related advice that I need. Tracy and Maria are knowledge experts when it comes to all matters relating to Payroll. Whether it's advice about payroll vendors, or legislative and statutory obligations, they are always more than happy to assist and go above and beyond.

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Understanding the new fixed term contract regulations

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