The Fair Work Act has been amended and includes new laws regarding job security, notably fixed-term contracts. Under certain conditions, employers can no longer enter certain fixed-term contracts with an employee.

Here’s what you need to know.

In December 2022, the Australian Government passed the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 which includes new laws regarding job security, notably fixed-term contracts.

Employers can now only enter into a fixed-term contract with an employee under certain conditions including:

• Contract periods can be no longer than 2 years (including extensions)
• Contracts may not be extended more than once, or if entering a new contract, it can’t be for the same or a substantially similar role as previous contracts over the last 2 years.

Additionally, it is now prohibited for employers to take any action that would circumvent these limitations.

For example, they can t:

• delay re-engaging an employee for a period
• re-engage the employee and engage someone else instead to do the same or substantially similar role.

However, there are a number of exceptions to this legislation, such as:

• when an employee has specialised skills that the employer needs for a specific task;
• when the employee is part of a training program;
• during peak periods or emergencies.
• the employee is covered by an award that allows fixed-term contracts in the above circumstances

What does this mean for your organisation?

Employers with fixed-term contracts should audit and review contracts to ensure compliance with the new legislation and consider any exceptions that may apply.

They should also consider any modern awards that may affect the terms of the contracts and tailor them to the needs of their organisation.

The components of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 start on different dates.

A timeline showing key start dates for all changes in the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 can be found below, or download the pdf here: Secure Jobs, Better Pay timeline

The Fair Work website also contains all the information:
https://www.fairwork.gov.au/newsroom/news/secure-jobs-better-pay-changes-to-australian-workplace-laws

Source:

To read the full Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022: https://www.legislation.gov.au/Details/C2022A00079

© Fair Work Ombudsman www.fairwork.gov.au

Licenced under the Creative Commons Attribution 3.0 Australia