Contract Types and Arrangements

When can fixed-term contracts be offered?

The Enterprise Agreement provides limitations on the use of fixed-term contracts and rules regarding further employment. At the University, fixed-term employment can only be offered where one of the following contract types listed in the Enterprise Agreement applies to the role:

 

New legislative limitations commencing Nov 2025

From 1 November 2025, the Fair Work Act 2009 places additional limitations on fixed-term employment (legislative limitations):

  • Maximum 2-year total duration: A staff member may not be employed on fixed-term contracts for the same or similar work for more than 2 years, including previous extensions and renewals (exemptions may apply).
  • Maximum 1 renewal: A fixed-term contract for the same or similar work may only be renewed once.

Note: Many contract types are exempt from these limitations – see further details below.

The following flow chart has been developed to assist you in determining when the legislative limitations apply:

fixed-term-contract-categories-information-sheet-flow-chart
  • Exempt contract types

    The following contract types are not subject to the 2-year maximum or 1 renewal limit. To be exempt, the contract must be issued in line with the terms of the Enterprise Agreement:

    Please view the summary table for further information on when these contract types can be used.

  • Non-exempt contract types

    The following contract types are not exempt from legislative limitations and must comply with 2-year maximum or 1 renewal limit for the same/similar work:

    Please view the summary table for further information on when these contract types can be used.

  • What is the high-income threshold?

    Staff member earning above the high-income threshold of $183,100 (pro rata) in the first year of their contract are not subject to the 2-year maximum or 1 renewal limit. High-income calculator here.

    Note: The high-income threshold is adjusted on the 1 July each year. For further details on how it is calculated, please visit the Fair Work Commission website . For historical rates please visit the Fair Work Ombudsman website .

  • Calculating the 2-year limit

    If a contract is not exempt, any previous fixed-term employment a staff member has had in the same or a similar role will count toward the legislative limitations. This includes fixed-term employment before the new laws take effect on 1 November 2025, even if their earlier contracts were exempt.

    The following service can be disregarded when determining whether the 2-year maximum term has been reached:

    1. Previous continuing employment
    2. Casual service
    3. Fixed term contracts for different work

    Need Help?

    If you're unsure whether a fixed-term is for the same or similar role, contact the HR Advisory team for guidance.

  • What are the consequences if the University issues a contract that breaches the new laws?

    Where a contract breaches these new restrictions, the Fair Work Act 2009 specifies that the person will automatically convert to continuing and the staff member will be entitled to claim unfair dismissal if their contract is terminated. They will also be entitled to a redundancy under the University’s Enterprise Agreement if the work they are performing ceases to be required.

    Additionally, issuing a contract inconsistent with these new restrictions will constitute a breach of the Fair Work Act, which may result in the University being required to pay a civil penalty of up to $198,000

  • Can I hire someone else to avoid breaching the 2-year limit?

    No, deliberate attempts to get around the legislative limitations, such as hiring a replacement, switching to casual employment, changing job titles, or creating an artificial break in service are not allowed and may lead to legal penalties.

    If challenged, the University would need to demonstrate that it was not attempting to avoid the legislative limitations by changing the employment relationship.

  • Can I conduct a merit-based process, or am I required to offer the staff member a continuing role when their fixed-term contract comes to an end (i.e. the incumbent)?

    If a situation arises in which a staff member is on a fixed-term contract which cannot be renewed without breaching the new laws, this does not necessarily mean the position has to be offered to the incumbent on a continuing basis. Where a merit-based process is required by the University’s Recruitment Procedure, it may be conducted, as long as it is for a continuing role only (not a fixed-term role). If we were challenged, the University would need to be able to demonstrate that it was not attempting to avoid the legislative limitations by conducting the merit-based process.

  • What if the staff member doesn’t want to renew their contract or resigns? Can we offer the contract on a fixed-term basis to another staff member?

    The anti-avoidance provisions restrict the University from offering work to another staff member with the purpose of avoiding the limitations. If a position is vacant, or if the incumbent confirms they are not interested in further employment in the position, the University is able to offer a contract on a fixed-term basis to another person. That is, the limitations apply to the contractual arrangement with a particular staff member rather than a position.

  • What are the exemptions for English Language Teachers?

    English Language Teachers are covered by a different Modern Award which means the exemptions are slightly different. Please seek support from the HR Advisory team regarding how the legislative limitations apply to English Language Teachers.

    Need Help?

    Please contact the HR Advisory team for guidance on the exemptions that apply for English Language Teachers.

  • Convertible contract types

    Staff employed on one of the following contract types have a right to convert to continuing employment at the end of their fixed-term contract if they meet the criteria in the Enterprise Agreement: 

  • Continuing Contingent Contracts

    Staff who are employed in an externally funded position may be eligible to apply for a Continuing Contingent Funded Appointment if they meet the criteria at clause 2.1.4 of the Enterprise Agreement. 

    • Application Form: Continuing Contingent Funded Appointment (PDF/Word)

    For further detail please read the Information Sheet here.

  • Scholarly Teaching Fellows

    The Enterprise Agreement provides that the University will appoint 35 or more academic staff into this category of continuing positions to undertake teaching that would otherwise have been performed by casual academic staff.

    For further details please read the Information Sheet here.

  • Education Specialists

    Need Help?

    Please contact the HR Advisory team for further assistance on fixed-term employment.