Fixed Term Contracts

The core rules for fixed term contracts

  • A fixed term contract must not last longer than two years, including any extension/renewal, and it cannot be extended/renewed more than once.
  • An employer must not offer a new fixed term contract for the same or substantially similar work if any of the following would be true:
    • the new contract includes an option to renew or extend;
    • the previous contract has already been extended;
    • the total continuous period of fixed term employment would exceed two years; or
    • there has been more than one previous fixed term contract for that work, with substantial continuity in employment.

Example — Oliver (12‑month Pharmacist role)

Oliver signs a 12‑month contract starting 1 July 2024 with an option to extend. The new rules apply. Any extension can only occur once and must not take the total beyond 24 months.

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