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Compliance Update December 2023

Dec 29, 2023 | FairWork Updates

Know the Rules HR latest information on FairWork

BULLETIN – LATEST AWARD AND FAIR WORK CHANGES. 
December 2023:

 

  1. Fixed Term Contract Information Statement (FTCIS):
    • Employers must provide a current employee who engages in a new fixed-term contract with a Fixed Term Contract Information Statement (FTCIS).
    • Employers must ensure that the FTCIS is given to new employees before they commence employment or as soon as possible afterwards.
      Your HR team will provide a Fixed Term Contract Information Statement to the employee when issuing a Fixed Term contract.
    • Additionally, the Fair Work Information Statement (FWIS) must be provided to new fixed-term employees.
      HR is already supplying this statement to new employees.

Example:

A new employee, Ben, engaged on a 12-month contract, should receive both the FWIS and the FTCIS.

2. Limitations on Using Fixed Term Contracts:

    • Fixed-term contracts cannot exceed two years, including extensions and renewals.
    • Renewal limitations: A contract cannot be renewed or extended more than once, even if the total period is less than 2 years.
    • Consecutive contract limitations: An employer cannot engage someone on a new fixed-term contract for mainly the same work without a substantial break in the employment relationship.

Examples:

    • A fixed term contract for 3 years would breach the time limitation.
    • Lara’s contract breached the renewal limitations by being extended more than once
  1. Exceptions to the New Rules:
    • Specialised skills, training arrangements, essential work, emergency circumstances, high-income employees, government-funded contracts, governance positions, and award provisions are exceptions to the new rules.

Example:

    • Vivian, a coach engaged on a 5-year contract, is an exception due to specialised skills.
    • Esther has just been hired on a 4-year contract as a project manager earning $240,000 per annum and is an exception because she is a high-income earner.

    If you would like more information please contact your HR Consultant or visit the Fair Work

    Website:https://www.fairwork.gov.au/newsroom/news/new-rules-for-fixed-term-contracts