Fixed Term V Permanent Employment Assessment Guide

New laws apply to fixed term contracts made or extended on or after 6 December 2023. These laws place restrictions on the way that fixed term contracts can be used in the workplace, and include limitations on extending fixed term contracts more than once and beyond a total period of 2 years. 

The restrictions are designed to prevent the repeated use of fixed term contracts for roles that are, in substance, ongoing. There are limited exceptions to these restrictions, but it is recommended that employers seek advice before they seek to implement a fixed term contract that may breach the restrictions.

Employers should therefore ensure that any proposed fixed term engagement is evaluated against the legislative limitations prior to its implementation. This document will assist employers to assess the most appropriate engagement type for a new or replacement employee, and to confirm whether a proposed fixed term arrangement is permissible under the new laws

This Assessment Guide will assist you in determining if your employee engagement is fixed term or permanent employment