Limit on the use of fixed term contracts:
A fixed-term employment agreement is a specific type of contract with a defined duration. From 6 December 2023, the following rules apply:
- Maximum 2-year contract period: Employers can only engage in fixed-term contracts for up to 2 years, including renewals and extensions.
- No more than 2 consecutive contracts: In certain circumstances, an employee can?t have more than 2 consecutive contracts for the same or similar work.
If the contract surpasses the specific period, the employee automatically gains permanent status, entitling them to termination notice, redundancy benefits, protection against unfair dismissal, and more.
Exceptions
- Some exceptions apply, such as for specialised skills, government-funded projects, distinct tasks, and essential work during peak demand, though these exceptions are untested.
Information Statements
- Alongside the Fair Work Information Statement (FWIS) and the Contractual Work Information Statement (CWIS), employers must provide a Fixed Term Contract Information Statement (FTCIS) to employees before or promptly after entering a new fixed term agreement for details on their minimum workplace rights and entitlements.
Termination of 'zombie agreements'
Enterprise Agreements, commonly referred to as Zombie Agreements, have automatically terminated (sunsetted) if they were established before 1 January 2010. The termination will take effect by 7 December 2023 unless a request was submitted to the Fair Work Commission to extend their validity.
After termination, the employment conditions will be determined by the relevant modern award, or by a new enterprise agreement that covers the employer and employee.
Employers should proactively assess whether they have a zombie agreement and seek guidance on notice requirements. To get more information:
- Visit sunsetting of pre-2010 agreements (?zombie agreements?) on the Fair Work Commission website; and
- What to do if you have a pre-2010 agreement that continues to operate (a ?zombie agreement?)
Can the employer direct Annual Leave over XMAS?
Instructing employees to go on leave during the Christmas period is within the rights of employers. However, starting 1 May 2023, employers should check whether they meet the updated notice requirements for exercising this right.
Notice Period
- Affected employees must receive written notice of the shutdown period at least 28 days prior. This obligation stems from recent amendments to 78 modern awards. Employers must adhere to these updated provisions when instructing employees to take leave. In cases where both the employer and the majority of relevant employees agree, a shorter notice period may be established. If new employees begin after the notice has been issued, written notice should be provided as soon as practicable.
Insufficient Leave
- For employees who have insufficient leave to cover the holiday period, employers will need to make it clear that leave requests will be refused. Employees may access rostered days off, time in lieu, unpaid leave, paid annual leave in advance, or any other entitlements to cover the period of leave.
Ignite HR & Employment Law is supporting businesses to understand their obligations, upgrade their current policies, undertake training and information sessions for businesses. If you find yourself in a situation where a staff member makes allegations in relation to any of these workplace behaviours you may need to do an investigation we can assist in addressing a sexual harassment or bullying complaint.
Talk to us to understand your obligations