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ARTICLE · 16 JANUARY 2018

Room for uncertainty: a new approach to fixed term contracts?

Bartier Perry Solicitors
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The uncertainty after this decision points to a need for more administration and better contract management by employers.

AustraliaEmployment and HR
James Mattson
James Mattson
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Since 2006, employers had significant comfort in the Federal Commission's view that they "are entitled to structure their affairs, including the contracts they offer to employees, in the way that they think best suits their interests" (Department of Justice v Lunn [2006] AIRC 756).

As such, employers could chose to offer employees outer-limit contracts (contracts with an agreed end date unless terminated earlier on notice). When the contract ended at the agreed end date, it would not be a dismissal. No unfair dismissal claim could successfully be made against the employer.

Well, following the Full Bench decision in Khayam v Navitas English Pty Ltd t/a Navitas English [2017] FWCFB 5162 (8 December 2017) there is no longer that comfort and certainty for business. There is more room for challenge.

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