New rules will come into effect from 6 December 2023 when engaging employees in Australia on fixed-term contracts.

The new rules require employers to give any employees they're engaging on a new fixed-term contract a Fixed Term Contract Information Statement (FTCIS). They also include some limitations on how fixed-term contracts can be used.

There are some exceptions to who these limitations apply, which means they don't apply to all fixed-term contracts. The limitations also do not apply to casual employees. These limitations apply for fixed-term contracts made on or after 6 December 2023 if no exceptions apply.

A fixed-term contract terminates at the end of a set period (for example, the contract ends after a specified date, period or season). This includes contracts where the employee is employed for a specific period. A fixed-term contract can't be for longer than two years. This includes any extensions or renewals.

As for renewal limitations, a fixed-term contract can't have an option to extend or renew the contract so the period of employment lasts for longer than two years or extend or renew the contract more than once.

The Fair Work Ombudsman also published new guidelines on consecutive contract limitations and further limitations for using fixed-term contracts.