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ARTICLE · 14 DECEMBER 2022

Secure Jobs, Better Pay - Fixed-term employment contract reform

Explains changes, the exceptions that apply, potential consequences for getting it wrong & gives some general tips to employers.

AustraliaEmployment and HR

Another significant change to the Fair Work Act 2009 (Cth) (FW Act) made by the Federal Government's Fair Work Legislation Amendment (Secure Jobs, Better Pay) Bill 2022 relates to the (in)ability of employers to over utilise fixed-term employment contracts.

These amendments stem from the belief that ongoing or repeated fixed term contracts do not provide for secure jobs.

In summary, the Secure Jobs, Better Pay legislation:

  • heavily regulates and restricts the use of fixed term contracts, with the new laws set to limit the maximum duration of these contracts to two (2) years;
  • contains limited exceptions to the restrictions on fixed term contracts;
  • makes a breach of the prohibition on misuse of fixed term contracts an offence and introduces anti-avoidance provisions; and

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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