New Fixed Term Contract Information Statement Published – What Employers Need to Know

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The Fair Work Ombudsman has published an updated Fixed Term Contract Information Statement (FTCIS), which must be given to all new employees engaged on a fixed term basis. This change reflects recent updates to the rules and exceptions around fixed term contracts. (Fair Work Ombudsman)

You can access the latest FTCIS directly from the Fair Work Ombudsman:

Download the Fixed Term Contract Information Statement (Fair Work Ombudsman)

 

Who Needs to Receive the FTCIS?
From 6 December 2023, employers must give every employee engaged under a new fixed term contract a copy of the FTCIS when they enter into the contract or as soon as possible after. (Fair Work Ombudsman)
This is required even if an exception to the fixed term contract limitations applies. (Employment Plus)

Key Limits on Fixed Term Contracts
As a reminder, for most employees:
  • A fixed term contract cannot exceed two years in total (including extensions or renewals). (Fair Work Ombudsman)
  • A fixed term contract can only be renewed once.
  • There are restrictions on using back-to-back fixed term contracts for the same or similar role with substantial continuity.
If these limits are exceeded and no exception applies, the employee may effectively be treated as ongoing/permanent at law.

Important Exceptions
The general rules are subject to a range of exceptions, including situations where:
  • the employee earns above the high-income threshold,
  • the role is for a specific task requiring specialised skills, or
  • the position is funded by time-limited government or external funding that is not likely to be renewed. (Fair Work Ombudsman)
In these circumstances, it may be possible to engage an employee on more than two fixed term contracts, or for a period longer than two years, provided the relevant criteria are met.
A summary of the exceptions is outlined on page 2 of the FTCIS itself, which is why it’s essential that employers download and review the most current version.
 
Don’t Forget the Other Information Statements
In addition to the FTCIS, employers must also provide: (Fair Work Ombudsman)
These statements explain core rights, entitlements and conditions under the National Employment Standards (NES) and must be incorporated into your onboarding process.
 
What Employers Should Do Now
To remain compliant and reduce risk, employers should:
  1. Update onboarding checklists to ensure the correct Information Statements (FWIS, CEIS, FTCIS) are issued at the right time.
  2. Review fixed term contract templates to check they align with the two-year limit, renewal restrictions and consecutive contract rules.
  3. Identify any roles relying on exceptions (e.g. funding-based or specialist projects) and confirm they genuinely meet the criteria.
  4. Train hiring managers and HR staff on when and how to use fixed term contracts appropriately.
Need Help with Fixed Term Contracts?
If you need support:
  • clarifying whether a role should be fixed term or ongoing
  • reviewing your contract templates and onboarding documents
  • or implementing a compliant process for issuing Information Statements
Explore Potential can help you navigate the changes with confidence.
Get in touch with our HR advisory team to discuss your specific situation.

Email: info@explorepotential.com.au
Phone: 7095 1830