Fixed-term employment contracts limited to 2 years

New rules in place from 6 December 2023

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)
• may be extended more than once, or
• is a new contract:
• that is for the same or a substantially similar role as previous contracts
• with substantial continuity of the employment relationship between the end of the previous contract and the new contract, and either:
• the total period of the contracts is 2 or more years,
• the new contract can be renewed or extended, or
• a previous contract was extended.

The changes were introduced as part of the Pay secrecy, job ads and flexible work amendments. See the Fair Work Ombudsman's website for more details.