Over the past 12 months, the Federal Labor Government has initiated a series of workplace reforms aimed improving pay and job security for working people.
The first tranche of these new laws, known as the Secure Jobs Better Pay Amendment, passed Parliament in 2022.
The changes include new rules designed to restrict the use of fixed-term contracts, and these came into effect on 6 December 2023.
What is a fixed-term contract?
Fixed-term contracts are contracts of employment covering a set time period with a specific end date. At the expiry date of the contract, the employment comes to an end.
In the education sector, fixed-term contracts are used when engaging temporary employees or temporary teachers.
What are the new rules?
Many IEU enterprise agreements typically impose restrictions on the use of temporary or fixed-term contracts for teachers. However, the introduction of the new laws mean these limitations are expanded to all employees, both in teaching and non-teaching roles, and across all sectors.
The amendments apply only in relation to new fixed-term contracts issued after 6 December 2023. The new rules prohibit ongoing use of fixed-term contracts when engaging employees by specifying certain conditions that must be met, including:
• the total period of employment under a fixed-term contract cannot be longer two years
• any fixed-term contract cannot have a term that offers an extension or renewal that is longer than two years
• the fixed-term contract cannot be extended or renewed for more than once
• if entering a new contract, it cannot be for the same or substantially similar role as previous contracts over the past two years
• when issuing fixed-term contracts, the employer must provide a Fixed Term Contract Information Statement.
Exceptions to the new rules
The newly enacted laws recognise the potential necessity of genuine fixed-term contracts under certain circumstances. Consequently, there are exceptions to the new rules. Restrictions on fixed-term contracts do not apply in the following situations:
• the employee earns above the high-income threshold (currently, the high income threshold is set at $167,500);
•positions that are subject to specific government funding that exceeds more than two years but is unlikely to continue
•the employee is employed to replace another employee on leave or secondment
•the employee is employed for a specific task that requires specialised skills
•the employee is engaged under training arrangements
•the employee is employed for essential work during a peak demand period or emergency circumstances.
Based on these exceptions, the new rules on fixed-term contracts will not apply to school principals.
It is unlikely these rules will apply to promotion positions, as there is an underlying ongoing teaching contract in such cases.
Effect of the new rules
If an employer breaches the new rules and an exception does not apply to the fixed-term contract, the expiry date of the contract will have no effect. The contract does not terminate.
Workers are the clear winners from these new provisions introduced by the Secure Job, Better Pay Amendment. However, since these provisions are relatively new, it will take some time to see how they are implemented in practice.
If you have any concerns about how these provisions apply to your employment, please contact your Union Organiser.