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ARTICLE · 14 SEPTEMBER 2017

Do Outer Limits employment contracts have a future?

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There should be cogent business reasons for the use of these contracts (other than to avoid unfair dismissal claims).

AustraliaEmployment and HR
Richard Ottley
Richard Ottley
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INTRODUCTION

The offering of a series of "fixed term" contracts to employees (often by the use of "outer limit" or "maximum term" contracts), has been seen as an attractive strategy for employing persons and then having their employment terminate without attracting the unfair dismissal provisions of industrial relations legislation. An "outer limit" or "maximum term" contract is a contract for a specified period which may be terminated before the end of that period upon the giving of notice.

This method of engaging employees is particularly popular with those employers whose ability to employ their staff may depend upon external factors. It is often a mode of employment used by universities whose ability to maintain their workforce may depend upon external funding.

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