Fixed Term Employment Agreements
A Fixed Term Employment Agreement is an employment contract for a set term – that is, it specifies a particular end date to the employment. They are used to employ staff where the period of employment is for a specified time frame or for work relating to a specific task or project. They are ideal for use if funding is available for a limited time or if a project has a finite duration.
They are also an ideal way to employ new staff to replace employees who are absent for a period, such as long service or parental leave.
Fixed term employees are entitled to the same wages and conditions of employment as full-time or part-time employees. However, their entitlements to holidays, superannuation and the like are issued on a pro-rata basis .
The length of the fixed term employment agreement cannot be ambiguous. It must state when the term begins and ends. When the agreed end date is reached, it will automatically expire, without either party needing to terminate it.
- The duration of the employment;
- An exit strategy. This is especially important for fixed term agreements for longer terms. It is not feasible for a fixed term contract to run for 5 years, which cannot be terminated by either party with 30 days notice. The best way to approach a lengthy fixed term agreement is to ensure the agreement can be terminated before the expiry date by one party giving the other a specified period of notice;
- A description of the specific task or project required of the employee;
- Pay rates and reviews;
- The rights and obligations of the parties;
- Confidentiality provisions;
- Dispute resolution processes.
Having these terms and conditions set out in a clearly drafted agreement, helps ensure that both parties know what is expected of them and thus reduces any misunderstandings or conflict. It is a handy reference for both to refer to and clarify issues. They also offer greater protection for employers, for example, by including clauses to protect confidential information such as client data bases and work created in the course of employment.
When hiring a new employee for a specific length of time a fairwork compliant fixed term employment agreement is essential.
Make sure your agreements comply with the National Employment Standards and Fair Work Act. These are part of the national framework that governs employment in Australia. They work in conjunction with employment awards, by setting out employment standards and issues such as minimum rights, responsibilities and employer obligations.
Fixed Term Employment Agreement Available for Immediate DownloadThe kit includes a comprehensive users manual and instructions. So easy to use, just edit and print. Use repeatedly, at no extra cost.
