Fixed Term Employment Agreement

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

Fixed term agreements are excluded from unfair dismissal remedies under section 386(2)(a) of the Fair Work Act 2009 (Cth), however, an employer who terminates a fixed term agreement prior to the expiration of the term, for reasons other than, for example, serious breach or accepting a repudiatory breach of the contract by the employee, may be liable for damages for breach of contract and, under certain circumstances, may be subject to a claim for unfair dismissal before a court.

When the contract provides for notice during the term (ie, other than for serious misconduct), or the employer treats the employment as if there is a notice requirement, the agreement will be a maximum term contract (ie, not a fixed term contract). This contract does not have a notice requirement.

In the case of a maximum term contract, when the employment is terminated by the employer during the term, the employee may be able to seek remedies under the unfair dismissal laws in the Fair Work Act 2009 (Cth). However, when the employment ceases on the agreed end date as set out under this fixed term contract, the employee is unlikely to be eligible to seek relief under unfair dismissal laws because the termination of employment will not be at the initiative of the employer. This is how this contract will end according to its provisions.

If a probation period is included, the contract will be considered to be for a maximum term. This contract does not have a probation period provision.

For a maximum term agreement with a probation period and notice provisions included, see Lawpath's Maximum Term Employment Agreement.

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 fixed term employment and casual employment?

Fixed term employees are different to casual contracts. Firstly, fixed 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 fixed amount of time and having no right to claim unfair dismissal, these employees have the same rights for work conditions as permanent employees. A fixed term employment agreement is an appropriate solution when hiring someone for a specific amount of time, or to replace someone for a specific period.