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The Australian Government has amended the Fair Work Act to place conditions on the use of fixed term contracts when engaging employees.

The rules come into effect on 6 December 2023. They require employers to give new employees engaged on a fixed term contract a Fixed Term Contract Information Statement (FTCIS) and will limit how fixed term contracts can be used.

However, several exceptions may apply if you run a charity. They include:

  • If the position is at least partly funded by an ACNC registered charity, or if the funding has been provided a testamentary gift; and if the fixed term contract is entered into on or after the 6 December 2023 and before 1 July 2024

  • If the position is funded in whole or in part by government funding, the funding is payable for a period of more than two years and there are no reasonable prospects that the funding will be renewed after the end of that period.

  • If the position relates to a governance position where a time limit is imposed on the position by the governing rules of the corporation or association.

The Fair Work Commission have developed guidance to assist employers understand the new rules.

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