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ARTICLE · 22 FEBRUARY 2018

Has The "Outer Limit" Contract Reached Its Expiry Date?

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It is common for employers to bring on employees for limited term employment, where work may not be ongoing.

United StatesEmployment and HR
Rachel Bernasconi
Rachel Bernasconi
Erin Hawthorne
Erin Hawthorne
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It is common for employers to bring on employees for limited term employment, where work may not be ongoing. Traditionally, "outer limit" contracts have allowed for the employment to end on an agreed date without a resignation or dismissal. A recent decision of the Full Bench of the Fair Work Commission may have pushed "outer limit" contracts closer to their own expiry date.

The key takeout is that if the employee does not voluntarily leave employment and the driving force causing the employment to end is a decision or act of the employer, it could be a "dismissal", even if the employment ends on the agreed expiry date. In addition to unfair dismissal, this change could also have broader impacts, for example:

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