Do you know what a Fixed Term Contract Information Statement is?
The Fixed Term Contract Information Statement (the FTCIS) provides employees that are on a fixed term contract with information about their conditions of employment in relation to the rules about fixed terms of employment.
From 6 December 2023, new rules apply to employees on fixed term contracts.
The new rules include a requirement for employers to give any employees being employed on a new fixed term contract a Fixed Term Contract Information Statement (FTCIS).
They also include some limitations on how fixed term contracts can be used. There are some exceptions to who these limitations apply to which means they don’t apply to all fixed term contracts. The limitations also don’t apply to casual employees as they are not employed for a fixed term.
A fixed term employee is an employee who has a contract that terminates at the end of a set period.
As an employer, you must also provide new employees with:
- the Fair Work Information Statement; and
- the Casual Employment Information Statement, if the employee is casual. (an employee on a fixed term contract isn’t a casual)
So, an employee on a fixed term contract must receive a copy of the Fair Work Information Statement and a copy of the Fixed Term Contract Information Statement.
The FTCIS is a statement that provides information about fixed term employment, including the rules about when fixed term contracts can be made.
It has information about:
- what a fixed term contract is
- limitations on the use of fixed term contracts
- exceptions to the limitations
- how to resolve disputes about fixed term contract limitations and exceptions.
The FTCIS can be given to employees:
- in person
- by mail to their residential address, or
- if the employee agrees, it can be given electronically, such as:
- by email
- by emailing a link to the page of the Fair Work website that has the information about fixed term contracts and the FTCIS
- by emailing a link to a copy of the FTCIS available on the employer’s intranet.
Employers need to give fixed term employees the version of the FTCIS that’s in place when the employer enters into a fixed term contract with the employee. Employers should check back here regularly to make sure they’re using the latest version.
There are rules about when fixed term contracts can be used. These are also called limitations.
These limitations apply for fixed term contracts made on or after 6 December 2023, if no exceptions apply.
A fixed term contract can’t be for longer than 2 years. This includes any extensions or renewals.
A fixed term contract can’t have an option to:
- extend or renew the contract so the period of employment lasts for longer than 2 years, or
- extend or renew the contract more than once.
An employee can’t be offered a new fixed term contract if:
- Their previous contract was also for a fixed term.
- Their previous contract and the new contract are for mainly the same work.
- There is substantial continuity in the employment relationship between the previous and new contracts, and
- the previous contract contained an option to extend that was used
- the total period of employment for both the previous and new fixed term contract is more than 2 years
- the new fixed term contract contains an option to renew or extend, or
- there was an initial contract in place (before the previous contract):
- that was for a fixed term,
- that was for the same or similar work, and
- where there was substantial continuity in the employment relationship.
There are some exceptions to these rules that mean the limitations don’t apply to all fixed term contracts. They also don’t apply to casual employees.
For further expert advice on human resources or if you have any questions about anything HR related, get in touch.
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