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Changes to Fixed-Term Employment Contracts: maximum 2 Years

Changes to Fixed-Term Employment Contracts: maximum 2 Years

Discover the latest changes to fixed-term employment contracts with a maximum limit of 2 years. Stay informed with insights from Bates Cosgrave experts.

Effective December 6, 2023, employers are no longer permitted to engage an employee under a fixed-term contract that:

  • exceeds a duration of 2 years (including extensions)
  • may be extended more than once, or
  • constitutes a new contract that:
    • is for the same or substantially similar role as previous contracts.
    • exhibits substantial continuity in the employment relationship between the end of the prior contract and the commencement of the new contract, and satisfies any of the following conditions:
      • the cumulative period of the contracts spans 2 or more years
      • the new contract has the potential for renewal or extension
      • a previous contract underwent extension.


These modifications have been implemented as part of the Pay Secrecy, Job Ads, and Flexible Work amendments. Additional details can be found on the Fair Work Ombudsman’s website.