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Maximum Term Employment Agreement

This Maximum Term Employment Agreement, structured as an offer letter, establishes an employment relationship that will last, at a maximum, for a specific period or until a specific date.


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Document Overview

An Employment Agreement is a great way to lay out the terms, expectations, and responsibilities of a new employee.

The difference between a Fixed Term Employment Agreement and a Maximum Term Employment Agreement is that the latter includes a probation period and/or any provision allowing early termination for reasons other than serious misconduct or breach of contract. Unlike Fixed Term Employment Agreements, Maximum Term Employment Agreements give employees right to claim unfair dismissal. You can also use Lawpath's Fixed Term Employment Agreement document.

WARNING: there is legal uncertainty as to whether, under the Fair Work Act, maximum term agreements can terminate on the set date without triggering an unfair dismissal claim. We highly recommend speaking to a lawyer when entering such an agreement.

Additionally, it is important that at no point during the employment the employer gives the employee any representation or expectation that the agreement will continue beyond the end date. If this happens, a court might consider the agreement to not fall under the section 386(2)(a) exception, and give the employee unfair dismissal rights that may apply even if employment is terminated on the set date.

What is the difference between maximum term employment and casual employment?

Maximum term employees are different to casual contracts. Firstly, maximum term employees are either full-time or part-time employees as opposed to casual employees who work irregular hours. Furthermore, besides being employed for a maximum amount of time, these employees have the same rights for work conditions as permanent employees. A maximum term employment agreement is an appropriate solution when hiring someone for a specific amount of time, or to replace someone for a specific period. 

Use this Maximum Term Employment Agreement if:

  • You are hiring a part-time or full-time employee for a maximum period of time or until a specific event occurs. 

  • You want to clearly establish an employee’s rights and responsibilities. 

What's included in this Maximum Term Employment Agreement:

  • Starting work

  • Probationary Period

  • Role and place of work

  • Hours of work

  • Duties and responsibilities

  • Conflicts of interest 

  • Remuneration and benefits

  • Superannuation

  • Expenses

  • Leave

  • Use of our property 

  • Confidentiality

  • Intellectual Property

  • Privacy in our workplace

  • Medical examinations

  • Monitoring and surveillance

  • Ending employment

  • Deductions

  • General Clauses

Other documents you may need:

Further Information

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