Fixed term contract employee

Fixed-term contract employees are brought on board for a role that has a clear finish line, such as a temporary project, a seasonal peak in business, or to cover for someone on leave. Their employment is bound by the duration defined in the contract, meaning their job ends when this period expires without the need for a dismissal or resignation.

Rights of fixed term employees

Fixed term employees get the same National Employment Standards as ongoing employees while the contract runs, including paid annual leave and personal/carer's leave. They are generally not entitled to notice or redundancy pay under the National Employment Standards when the contract ends at its agreed end date, unless the arrangement was used to avoid those entitlements. A fixed term contract that breaches the 2-year limit is treated as ongoing employment. For example, an employee hired for 6 months to cover parental leave accrues annual leave, and any unused leave must be paid out when the contract ends.

See fixed term contract and our guide to ending an employment contract.