
January IR Insights
Jan 24, 2024
2 min read
Fixed Term Contract Changes (Aus)
New rules now apply to Fixed Term Employment Contracts made on or after 6 December 2023. The key changes you need to be aware of include:

If you are engaging an employee on a fixed term contract, you will be required to issue the new contract with a Fixed Term Contract Information Statement and set the contract term for a period of no greater than 2 years.
If the original contract term is less than 2 years, you can only extend the term once (providing this extension does not exceed the 2-year cap).
At the end of the term, you are not able to enter a new 2-year fixed term unless the work performed is substantially different.
Trial Periods are Back (NZ).
Legislation has been passed in NZ, bringing back 90-day trial periods for all employers. Trial periods essentially remove the ability for an employee to bring a personal grievance for unjustified dismissal in most circumstances.
If you’d like to take advantage of this change in legislation, here’s what you need to know:
To be valid, a trial period must be written in the employment agreement and agreed to by both parties before commencing work,
The trial period must be entered into willingly and in good faith (an employee cannot be forced into a trial period),
The employment agreement needs to be signed before commencing employment, and
The 90-day trial clause needs to stipulate when the 90-day trial commences.
Employees on trial periods should be treated the same way as any other employee in all other circumstances, keeping in mind that a personal grievance can still be brought by an employee on a trial period if the matter is not related to dismissal.
If you currently engage or are looking to engage a fixed term employee or would like to take advantage of trial periods, please contact the team at Streamline HR for specific advice and support.