Fixed Term Employment Agreement
This Fixed Term Employment Agreement, structured as an offer letter, establishes an employment relationship that lasts for a specific period or until a specific event. This agreed-upon end date can be a calendar date or upon the completion of a specific task or role.
Last updated February 25, 2025
Suitable for Australia
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What is a fixed term employment agreement?
What is a fixed term employment agreement?
A fixed term employment agreement is a contract that employs someone for a specific period or until a task or event is complete, after which employment automatically ends.
It covers the same core terms as an ongoing role, pay, duties, leave, but with a defined end date built in. It suits project work, contract cover, or roles with a genuine, known finish point.
Does a fixed term employment agreement protect against unfair dismissal claims?
Does a fixed term employment agreement protect against unfair dismissal claims?
Generally, yes, for the employer: an employee whose fixed term employment agreement ends on its agreed date or event usually can't claim unfair dismissal, since the contract was always going to end then.
Ending it early without a valid reason is different, and can expose the employer to a breach of contract claim or, in some circumstances, unfair dismissal remedies.
How many times can a fixed term employment agreement be renewed?
How many times can a fixed term employment agreement be renewed?
Only once, and the total length of the original contract plus that renewal can't exceed two years, under Fair Work Act rules.
If a fixed term employment agreement breaches this cap, the clause setting the end date becomes void, and the employee is treated as a permanent employee instead, with full unfair dismissal and redundancy rights.
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Frequently asked questions
Are fixed term employees entitled to annual leave and redundancy pay?
keyboard_arrow_upIs there a probation period or notice requirement in a fixed term employment agreement?
keyboard_arrow_upWhat's the difference between a fixed term contract and a maximum term contract?
keyboard_arrow_upHow does a fixed term employment agreement differ from casual employment?
keyboard_arrow_upCan an employer change my role or duties during a fixed term employment agreement?
keyboard_arrow_upWhat happens if an employer ends a fixed term employment agreement early?
keyboard_arrow_upAre company policies part of a fixed term employment agreement?
keyboard_arrow_upWhat's the most common mistake employers make with fixed term contracts?
keyboard_arrow_upHow do you write a fixed term employment agreement?
keyboard_arrow_upWhat steps should I take after signing a fixed term employment agreement?
keyboard_arrow_upHow long does it take to create a fixed term employment agreement?
keyboard_arrow_upView Sample Fixed Term Employment Agreement
The Legal Risk Score of a Fixed Term Employment Agreement Template is Medium
Our legal team have marked this document as medium risk considering:
- The document allows the employer to unilaterally change the nature of the employee's role, duties, and reporting lines, which could lead to unexpected job responsibilities or a shift in career trajectory.
- The document specifies that the employer's policies are binding but clarifies that these policies do not form part of the employment contract, which might lead to confusion or misunderstandings about the enforceability of such policies.
- This role must be carefully managed so that the role ends on the set date, otherwise it could create further obligations or liabilities upon the employer.
Meet Our Users
Articles about Fixed Term Employment Agreement
Fixed Term Contracts: An Explainer
Considering hiring a fixed term employee? Or not sure whether they should be a permanent employee? Find all about fixed term contracts here.
Fixed Term Contract Termination: Legal Or Not?
Have you ever wondered whether the termination of fixed term contracts is legal? Read this article to find out.
How to Extend Your Employees’ Fixed Term Contract
Looking to employ a fixed term employee or renew their old contract? Find out here what fixed term contracts contain, and how to extend one.
What Are Maximum Term Fixed Contracts?
Employees may be engaged in a number of different ways depending on what best suits the situation. Learn more about maximum term fixed contracts here.
Upcoming Changes to Fixed Term Employment Contracts
The government has introduced changes that reduce the scope of maximum term and fixed term employment contracts and offer additional protections to workers on these contracts. These changes passed on 6 December 2022, and are coming into force on 6 December 2023.
4 Things to Know Before Preparing an Employment Agreement
An Employment Agreement sets out the terms and conditions of employment. Here's 4 important things to know about using them.
The Employment Agreement: 5 Things To Always Include
An employment agreement is important in setting out rights and responsibilities of employers and employees. Here are 5 things that should be included.
What Legal Services do I need to Hire an Employee?
Need to hire an employee? Learn about the legal documents and services you will need in place to safeguard your business and employees.
3 Steps After Completing Your Contractor Agreement
Hiring a contractor for your business? Find out what to do after completing your contractor agreement (individual) in this article.
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