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ARTICLE · 29 JULY 2021

Best practice tips for managing maximum term employment contracts

Employers should remind employees of expiration of employment contract and confirm no further offers of employment.

AustraliaEmployment and HR
Rohan Burn
Rohan Burn

The Fair Work Commission ("FWC") has highlighted some best practice tips for managing employee expectations and legal risks when using a series of maximum term employment contracts.

Appropriately drafted maximum term employment contracts

The FWC found that the terms of the eight (8) contracts were clear, unambiguous and expressly articulated the respective maximum terms of employment. In particular, the maximum term employment contracts provided that:

  • the employment was "temporary for the maximum period";
  • the employment would terminate at the end of the specified period; and
  • the employment was offered "on the basis that there can be no guarantee of further employment beyond that period".

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