Fixed Term Agreements
A Fixed Term Employment Agreement is suitable for use where a staff member is being employed for a set length of time, with a specified end date for the employment.
Fixed Term Agreements are useful for situations where a staff member has come on board for a limited time: for example, to complete a specific project or to replace staff taking long service or maternity leave.
A written Employment Contract allows the employer and employee to define the scope and duration of the working arrangement, and set out exactly what is required of each party.
You should ensure your Employment Contract is in line with the Fair Work Act and the employee’s applicable Award.
The Act, including the National Employment Standards, and the Award set out the employee’s minimium rights and standards that must be adhered to.
The length of the fixed term must be clearly defined in the Agreement, with a clear start and end date. If a specific end date is not ascertainable, but rather linked to the completion of a certain task or project, you will need to specify the method upon which the end of the employment can be ascertained, for example, the completion of the set task or project.
Once the set end date has arrived, or the specified project completed, the contract will automatically expire. It is also recommended to include events that trigger an early termination of the Contract for unplanned events, such as where a certain project is abandoned or discontinued.
Early exit clauses are also recommended, especially for longer term contracts, to define the ways in which the parties may terminate the contract earlier than the end date where expectations are not being met or the parties wish to end the contract early.
RP Emery’s Fixed Term Employment Contract
RP Emery provides Employment Agreement Kits which are professionally drafted and comply with the Fair Work Act. The Kit provides employers and employees with resources that allow you to create your own Fair Work Act compliant Fixed Term Employment Agreement.