Fixed-Term Employment Agreement (Australia)
Fair Work Act 2009 (Cth) s333E — Maximum 2-Year Term Restrictions
This Fixed-Term Employment Agreement (the “Agreement”) is made and entered into between:
[Employer Name] (ABN/ACN: [Employer ABN]), of [Employer Address], [Employer City] [Employer State] [Employer Postcode] (the “Employer”); and
[Employee Name], of [Employee Address], [Employee City] [Employee State] [Employee Postcode] (the “Employee”).
Together referred to as the “Parties”.
1. FIXED TERM AND COMMENCEMENT
1.1 The Employee is engaged on a fixed-term basis commencing on [Start Date] and ending on [End Date] (the “Fixed Term”), unless terminated earlier in accordance with the terms of this Agreement.
1.2 Employment under this Agreement automatically ceases on [End Date] without the need for either party to give notice of termination. No notice of termination is required at the expiry of the Fixed Term.
1.3 This Agreement is subject to the restrictions on fixed-term contracts set out in Part 2-5A of the Fair Work Act 2009 (Cth) (as inserted by the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, effective 6 December 2023), including the prohibition on contracts of employment of more than 2 years (s333E).
1.4 The Employer will provide the Employee with a copy of the Fair Work Information Statement (FWIS) and the Fixed Term Contract Information Statement (FTCIS) before or as soon as practicable after the Employee commences employment, as required by the Fair Work Act 2009 (Cth).
1.5 This Agreement is subject to the Fair Work Act 2009 (Cth), the National Employment Standards (NES), and the applicable Modern Award: [Modern Award]. To the extent of any inconsistency, the NES and applicable Modern Award prevail.
2. POSITION, DUTIES AND PLACE OF WORK
2.1 The Employee is engaged in the position of [Job Title] for the duration of the Fixed Term.
2.2 The Employee’s primary place of work is [Place Of Work]. The Employer may, on reasonable notice, require the Employee to perform work at other locations.
2.3 The Employee’s key duties and responsibilities during the Fixed Term include:
[Duties Summary]
2.4 The Employer may, from time to time, reasonably vary the Employee’s duties provided such variation does not amount to a fundamental change to the nature of the role.
3. HOURS OF WORK
3.1 The Employee’s ordinary hours of work are [Hours Per Week], in accordance with section 62 of the Fair Work Act 2009 (Cth).
3.2 The Employee’s usual working pattern is [Working Days].
3.3 The Employee may be required to work reasonable additional hours in excess of ordinary hours where this is reasonable in all the circumstances.
4. REMUNERATION
4.1 The Employer will pay the Employee a base salary of [Salary] per annum (gross, before tax), payable [Pay Frequency] in arrears by direct bank transfer.
4.2 This salary meets or exceeds the applicable Modern Award minimum rate and the National Minimum Wage for the duration of the Fixed Term.
4.3 The Employer will deduct income tax and required statutory deductions in accordance with applicable Commonwealth taxation law.
5. SUPERANNUATION
5.1 The Employer will make superannuation contributions for the Employee in accordance with the Superannuation Guarantee (Administration) Act 1992 (Cth) and the NES right to superannuation (effective 1 January 2024).
5.2 The current Superannuation Guarantee contribution rate is 11.5% of the Employee’s ordinary time earnings (from 1 July 2024), increasing to 12% from 1 July 2025.
5.3 Contributions will be directed to: [Super Fund], or the Employee’s nominated complying superannuation fund or stapled fund.
6. LEAVE ENTITLEMENTS
6.1 The Employee is entitled to all NES leave entitlements during the Fixed Term on the same basis as a permanent employee, accruing progressively from the commencement date. These include:
- Annual Leave: 4 weeks per year of service, accruing progressively (s87 Fair Work Act 2009 (Cth)). Unused annual leave is paid out on termination or expiry of the Fixed Term.
- Personal/Carer’s Leave: 10 days per year of service, accruing progressively (s96 Fair Work Act 2009 (Cth)).
- Compassionate Leave: 2 days paid leave per occasion (s104 Fair Work Act 2009 (Cth)).
- Parental Leave: Up to 12 months unpaid parental leave, subject to the 12-month qualifying period of continuous service (Part 2-2 Division 5 Fair Work Act 2009 (Cth)).
- Community Service Leave: Unpaid leave for jury duty and emergency management activities.
- Public Holidays: Paid day off on applicable public holidays in [Employer State] (s114 Fair Work Act 2009 (Cth)).
6.2 Long Service Leave: The Employee may be entitled to long service leave under the applicable legislation of [Governing State] if the Fixed Term reaches the qualifying period (which varies by state and territory).
6.3 On expiry of the Fixed Term (or earlier termination), the Employer will pay out any accrued and untaken annual leave at the Employee’s base rate of pay at the time of termination or expiry.
7. RENEWAL RESTRICTIONS
7.1 This Agreement may not be extended or renewed (either as a further fixed-term contract or a maximum-term contract) if doing so would result in the total period of the Employee’s employment under this Agreement and any previous fixed-term or maximum-term contracts for the same or a substantially similar role with the Employer exceeding 2 years, unless an exception under section 333E(3) of the Fair Work Act 2009 (Cth) applies (s333F Fair Work Act 2009 (Cth)).
7.2 If the prohibited term provisions in Part 2-5A of the Fair Work Act 2009 (Cth) apply and the end date of this Agreement is prohibited, the end date will have no effect and the employment will be treated as ongoing employment (s333G Fair Work Act 2009 (Cth)).
7.3 The Parties acknowledge that prior fixed-term or maximum-term contracts for the same or a substantially similar role between the Parties have been taken into account in determining that this Agreement complies with section 333E of the Fair Work Act 2009 (Cth).
8. EARLY TERMINATION
8.1 Notwithstanding the Fixed Term, this Agreement may be terminated before [End Date] in the following circumstances:
[Early Termination Reason]
8.2 Except in the case of termination for serious misconduct, the Employer will provide the Employee with [Early Termination Notice Period] written notice of early termination, or payment of the Employee’s salary and entitlements in lieu of notice up to the date of termination only. The Employer is not liable for the balance of salary that would have been earned for the remainder of the Fixed Term.
8.3 The Employee may terminate this Agreement early by providing [Early Termination Notice Period] written notice to the Employer. Early termination by the Employee does not give rise to any claim against the Employee for the balance of the Fixed Term.
8.4 Upon any early termination or expiry of the Fixed Term, the Employer will pay the Employee all accrued salary, superannuation, and annual leave entitlements to the date of termination or expiry.
9. GENERAL PROVISIONS
9.1 Policies and Procedures: The Employee must comply with all reasonable workplace policies, procedures, and codes of conduct of the Employer in force from time to time during the Fixed Term.
9.2 Confidentiality: The Employee must not disclose any confidential information of the Employer to any third party without the Employer’s consent, during or after the Fixed Term.
9.3 Intellectual Property: All intellectual property created by the Employee in the course of their employment under this Agreement vests in the Employer from the date of creation in accordance with section 35(6) of the Copyright Act 1968 (Cth) and general principles of employment law.
9.4 NES Compliance: This Agreement is subject to and does not exclude, restrict, or modify any entitlement under the NES. Any term purporting to exclude or reduce an NES entitlement is of no effect to the extent of that inconsistency (s55 Fair Work Act 2009 (Cth)).
9.5 Governing Law: This Agreement is governed by the laws of [Governing State] and the Commonwealth of Australia. The Parties submit to the jurisdiction of the courts of [Governing State] and the Federal Court of Australia.
9.6 Variation: Any variation to this Agreement must be agreed in writing and signed by both Parties.
9.7 Entire Agreement: This Agreement constitutes the entire agreement between the Parties with respect to the fixed-term employment relationship and supersedes all prior representations and agreements.
IN WITNESS WHEREOF, the Parties have executed this Fixed-Term Employment Agreement on the date last signed below.
SIGNED for and on behalf of the EMPLOYER:
Employer: [Employer Name]
ABN/ACN: [Employer ABN]
Address: [Employer Address], [Employer City] [Employer State] [Employer Postcode]
SIGNED by the EMPLOYEE:
Employee: [Employee Name]
Address: [Employee Address], [Employee City] [Employee State] [Employee Postcode]
Employer / Authorised Signatory
________________
Signature
Date: ________________
Employee
________________
Signature
Date: ________________
What Is a Fixed-Term Employment Agreement (Australia)?
A Fixed-Term Employment Agreement in Australia sets out the duties, hours, pay, leave, and termination terms between employer and employee, consistent with the minimum entitlements guaranteed by the Fair Work Act 2009 (Cth). It defines duties, remuneration, working hours, leave, and termination procedures binding employer and employee.
The legal framework for fixed-term employment in Australia was significantly reformed from 6 December 2023 when Part 2-5A of the Fair Work Act 2009 (Cth) — inserted by the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 — came into effect. These reforms introduced a maximum 2-year term restriction under section 333E, renewal and re-engagement restrictions under section 333F, and anti-avoidance provisions under section 333H. These provisions apply to fixed-term contracts entered into on or after 6 December 2023. Importantly, prior fixed-term contracts for the same or a substantially similar role must be counted when calculating whether the 2-year limit is reached on a new contract.
If a fixed-term contract contravenes Part 2-5A, the end date is unenforceable and the employment is treated as ongoing under section 333G. This means the employer would need to go through a full termination process — including notice and potentially redundancy pay — to end the employment. The consequences of non-compliance are therefore significant.
Several exceptions to the 2-year limit exist under section 333E(3), including for high-income earners, specific task or project engagements, specialist or expert roles, small business employers, and training arrangements. Employers should carefully assess whether an exception applies before relying on a fixed-term contract that would otherwise exceed the 2-year limit.
The legal framework governing the Fixed-Term Employment Agreement (Australia) in Australia draws on several key statutes and regulatory bodies. Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. The Fair Work Ombudsman (FWO) enforces compliance with the National Employment Standards (NES). The Privacy Act 1988 (Cth) and Australian Privacy Principles (APPs) govern personal data handling. The Australian Taxation Office (ATO) administers PAYG withholding and superannuation guarantee obligations under the Superannuation Guarantee (Administration) Act 1992. Parties executing a Fixed-Term Employment Agreement (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Fair Work Act 2009 (Cth) sets the foundational requirements.
When Do You Need a Fixed-Term Employment Agreement (Australia)?
A Fixed-Term Employment Agreement is needed whenever an employer in Australia intends to engage an employee for a defined period that has a natural end date — rather than on an ongoing permanent basis. Common situations in which a fixed-term contract is appropriate include the following.
Project-based engagements: Where the employer is undertaking a specific project — such as a construction project, a technology implementation, a research grant, or a product launch — and requires staff only for the duration of that project. The specific task or project exception (s333E(3)(b) Fair Work Act 2009 (Cth)) may apply to allow a contract exceeding 2 years in these circumstances.
Temporary replacement: Where an employee is on long-term leave (such as parental leave, long service leave, or extended personal leave) and the employer needs to engage a replacement for the duration of that leave.
Externally funded roles: Where a position is funded by a government grant, research grant, or other external funding source that has a defined end date. The external funding exception under section 333E(3) may allow the contract to match the funding period even if it exceeds 2 years.
Specialist engagements: Where the employer requires a specialist or expert for a defined period to perform a specific, highly skilled function — such as an IT systems architect, a clinical trial specialist, or an expert in a particular technology.
Seasonal work: Where the nature of the business involves seasonal demand peaks — such as in tourism, agriculture, retail, or events — that create a defined period of increased staffing need. Employers should note that engaging the same seasonal worker on successive fixed-term contracts may trigger the renewal restrictions under section 333F.
Parties in Australia should prepare a Fixed-Term Employment Agreement (Australia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. The Fair Work Ombudsman (FWO) enforces compliance with the National Employment Standards (NES). The Privacy Act 1988 (Cth) and Australian Privacy Principles (APPs) govern personal data handling. The Australian Taxation Office (ATO) administers PAYG withholding and superannuation guarantee obligations under the Superannuation Guarantee (Administration) Act 1992. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Fixed-Term Employment Agreement (Australia)
A legally compliant Fixed-Term Employment Agreement for Australia under the post-December 2023 framework must address several specific provisions.
The fixed term and commencement clause must clearly state the start date and end date of the employment. The end date should be precise (a calendar date is preferable to a relative term such as 'until the completion of the project') and must not result in a total period of employment — across this contract and any prior fixed-term contracts for the same or a substantially similar role — exceeding 2 years, unless an applicable exception exists.
If an exception to the 2-year limit applies, the agreement should expressly identify which exception under section 333E(3) of the Fair Work Act 2009 (Cth) applies and describe the factual basis for the exception. Documenting the exception in the agreement provides important evidence if the contract is later challenged. Employers should seek legal advice before relying on an exception.
The renewal restrictions clause should acknowledge the prohibitions in section 333F and confirm that the parties understand the contract cannot be renewed or extended in a way that would breach Part 2-5A. This prevents disputes at the end of the fixed term about whether an extension is permissible.
The early termination clause is critical. Without it, the employer may be liable for the full remaining salary for the fixed term if the contract is ended early. The clause should specify the notice period required for early termination other than for serious misconduct, and clearly limit the employer's liability on early termination to the notice period and accrued entitlements.
The Fixed Term Contract Information Statement (FTCIS) must be provided to the employee before or as soon as practicable after commencement. The agreement should record this obligation. NES leave entitlements — including the payout of accrued annual leave on expiry or early termination — must also be addressed.
Additional compliance elements for a Fixed-Term Employment Agreement (Australia) used in Australia include: Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. The Fair Work Ombudsman (FWO) enforces compliance with the National Employment Standards (NES). The Privacy Act 1988 (Cth) and Australian Privacy Principles (APPs) govern personal data handling. The Australian Taxation Office (ATO) administers PAYG withholding and superannuation guarantee obligations under the Superannuation Guarantee (Administration) Act 1992. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
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year = {2026},
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note = {Free legal document template. Based on Fair Work Act 2009 (Cth)}
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Frequently Asked Questions
From 6 December 2023, Part 2-5A of the Fair Work Act 2009 (Cth) — inserted by the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022 — imposes three key restrictions on fixed-term contracts. First, under section 333E, a fixed-term contract must not have a period of employment (the term of the contract itself, including any extension or renewal provision) of more than 2 years in total. Second, under section 333F, an employer cannot re-engage an employee on a new fixed-term contract for the same or a substantially similar role if doing so would result in the total period of employment under consecutive fixed-term contracts exceeding 2 years. Third, anti-avoidance provisions (section 333H) prevent employers from structuring arrangements to circumvent these restrictions. If a fixed-term contract contravenes these provisions, the end date of the contract has no effect and the employment is treated as ongoing (section 333G). Employers are also required to give employees a Fixed Term Contract Information Statement (FTCIS) before or as soon as practicable after commencement.
Section 333E(3) of the Fair Work Act 2009 (Cth) provides several exceptions to the 2-year maximum term restriction. The exceptions include: (a) the employee's earnings under the contract exceed the high-income threshold set by the Fair Work Commission (approximately $175,000 in 2024–2025); (b) the contract is for a distinct task or project and the employment is for the duration of that task or project; (c) the employee performs specialist or expert work and is engaged for the performance of that specialist or expert role; (d) the employer is a small business employer as defined under the Act; (e) the employment is for a training arrangement (apprenticeship or traineeship); (f) there is a temporary absence of another employee who is on leave; and (g) certain exceptions under applicable Modern Awards. Employers should obtain specific legal advice if relying on an exception, as the Fair Work Commission may scrutinise whether the exception genuinely applies.
Yes. Under the National Employment Standards (NES) in Part 2-2 of the Fair Work Act 2009 (Cth), a fixed-term employee is entitled to the same NES leave entitlements as a permanent employee — including paid annual leave (4 weeks per year of service, accruing progressively), paid personal/carer's leave (10 days per year, accruing progressively), compassionate leave, parental leave (subject to the 12-month qualifying period of continuous service), community service leave, and public holidays. The key difference from permanent employment is that on expiry of the fixed term (or earlier termination), the employer must pay out any accrued and untaken annual leave. Long service leave entitlements depend on the applicable state or territory legislation and the qualifying period in that jurisdiction.
The Fixed Term Contract Information Statement (FTCIS) is a document prepared by the Fair Work Ombudsman that explains the new restrictions on fixed-term contracts that apply from 6 December 2023, the exceptions to those restrictions, and the consequences if a prohibited term exists. Under the Fair Work Act 2009 (Cth), as amended by the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022, employers must give a copy of the FTCIS to any employee engaged under a fixed-term or maximum-term contract — including contracts for less than 2 years — before or as soon as practicable after the employee commences employment. The FTCIS is in addition to the Fair Work Information Statement (FWIS), which must also be provided to all new employees. Under Australia law, Fair Work Act 2009 (Cth), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) adjudicates workplace disputes. Section 394 of the Fair Work Act 2009 governs unfair dismissal claims. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
If a fixed-term employment contract is terminated before its end date, the consequences depend on whether the contract contains an early termination clause. Without a valid early termination clause, an employer who ends a fixed-term contract before the agreed end date may be liable to pay the employee their salary for the entire remaining period of the contract — not merely notice pay. This is because the employer has breached the contract by failing to allow the employee to work for the agreed fixed term. To avoid this significant liability, fixed-term employment agreements in Australia should always include a clear early termination clause specifying the notice period (or payment in lieu) required for early termination other than for serious misconduct, and confirming that the employer's liability is limited to the notice period and accrued entitlements, not the balance of the fixed term. Notice periods for early termination must also meet the NES minimums under section 117 of the Fair Work Act 2009 (Cth).
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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