A recent decision of a Full Bench of the Fair Work Commission
(FWC) has opened the door to employees on maximum
term contracts bringing unfair dismissal claims by overturning the
principle that the expiry of a term contract is not a termination
at the initiative of the employer.
What are maximum term contracts?
Maximum term or outer limits contracts are commonly used by
employers in Australia because they allow for the employment of an
employee for a particular period of time, with the flexibility to
terminate the contract prior to the expiry of the term by the
giving of notice. The use of maximum term contracts is particularly
popular for project-based work or situations where external factors
may impact on an employer's ability to employ staff (for
example, if employment is contingent on the employer securing
government funding or successfully retendering for work).
