Fixed Term Employment Contract

This Fixed-Term Employment Contract can be used for employees engaged on a fixed-term basis in Australia.  This contract is not suitable for permanent part time/full-time employees, casual employees or individuals engaged as independent contractors.  

Fixed term employees are typically engaged for a set period (or season) and the contract will come to an end at the cessation of the identifiable period without either party needing to give notice to terminate as the contract simply concludes through the passage of time. 

Fixed term employees can be engaged on a full-time or part-time basis and have similar conditions and entitlements as permanent (ongoing) employees, including leave entitlements.  

It is important to be aware of the differences between ‘fixed term’ and ‘maximum term’ contracts. 

Maximum-term contracts contain a termination clause which allows either party to end the agreement upon the provision of notice, whereas a fixed-term contract doesn’t permit early termination: it for a guaranteed period. An attempt by a party to terminate a fixed-term contract could result in the other party being able to bring a claim against them for the full value of the remainder of the contract: for an employee, this could mean that they are entitled to their full salary until the specified end date.  

If you do not want a true fixed term arrangement, then you should use the template Maximum Term Employment Contract (available in our Online Shop) as this will include a probation clause and notice of termination provision.  

*NEW FAIR WORK RULES* From 6 December 2023 - Employers can’t employ someone on a fixed term contract: 

• that is for longer than 2 years (including extensions and renewals); 

• that has more than one extension option; and/or 

• where the employee will be employed under consecutive contracts.  

There are exceptions to these new rules that mean they don’t apply to all fixed term contracts.  Refer here for more details on this latest update. 

Note. If the employee is covered by an Enterprise Agreement or Modern Award, refer to the relevant instrument to ensure this template is suitable and to check whether any further amendments to this Contract are required. You can also book a call with our workchapters Experts should you want quick, tailored advice. 

The Contract is comprehensive in nature and includes all necessary detail to provide the framework for a fixed term employment relationship including the nature of employment, commencement and expiry dates, location of employment, ordinary hours of work, payment (and compensation for all legal entitlements), leave entitlements, superannuation, job title/position and reporting lines, return of property, confidential information, policies and procedures, medical assessments; personal information and privacy, and termination.  

The Agreement also includes a number of “Optional Clauses” for you to select/delete where applicable to your specific business such as vaccinations, discretionary bonus/incentive payments, resignation from offices held, uniform and drivers licence requirements and more. 

BONUS GUIDANCE NOTE + TEMPLATE COVER LETTER | Included with the Contract is a *BONUS* 8-page Employment Contracts Guidance Note and a Template Cover Letter (in Microsoft Word) to help guide your business through the engagement of a fixed-term employee. 

Our Shop Documents are:

• Prepared by Lawyers + Tailored by HR Experts.

• Legally compliant.

• Instant downloads.

• Ready to implement in your Business.

Who’s it for? 

Australian businesses (employers and persons controlling a business or undertaking) looking to engage an employee on a fixed-term basis for a set period or season. 

What’s included? 

A 24 page, legally compliant Fixed Term Employment Contract along with a BONUS Employment Contracts Guidance Note and Template Cover Letter.  

The Fixed-Term Employment Contract will be provided to you in a template (Microsoft Word) format for you to input basic details specific to your business (e.g. business name, key contacts/contact details, company logo, pay rates). There are clear prompts to input data and is intuitive in its nature, allowing you the ability to make small tweaks here or there in the future on an as-needs basis without having the cost and hassle of re-purchasing another document. 

How it works  

• Upon purchase, you will also automatically receive (1) a standard “Order #X Confirmed” email, followed by (2) an email (“Order #X is Ready”) containing a link to the file(s). Note the LINK WILL BE ACTIVE FOR 24 HOURS so download the document upon receipt. Please also check you Junk Email folder if it doesn’t appear in your inbox. 

• Your file will contain a Template Fixed Term Employment Contract, Employment Contracts Guidance Note and Template Cover Letter. 

• If you need further support on implementation of the Fixed Term Employment Contract or perhaps have questions as to how to bring in a new agreement for an existing employee given the new rules as of 6 December 2023 - we can help! Simply contact the Team at hello@workchapters.co.

Not sure if this document is for you? Book a free 15 minute consultation with our Team here. 

Note - All purchases are subject to our Online Shop Disclaimer and Terms + Conditions.