From 1 November 2025, Fair Work has quietly made another round of changes to the rules governing fixed-term contracts, and if you use contractors, project staff, or short-term hires, this one matters. A new version of the Fixed Term Contract Information Statement (FTCIS) has been released to reflect updates to the additional exceptions that determine when fixed-term contracts can be used. Let’s take a look at what’s changed, who’s affected, and what you need to do next. Quick Refresher: What Are the Current Rules? Since 6 December 2023, employers can’t employ someone on a fixed-term contract that: ✅ runs for longer than two years (including extensions) ✅ allows more than one renewal ✅ is used consecutively for similar work These limits were introduced to stop employers from using rolling short-term contracts instead of offering ongoing employment. Fixed-Term vs Maximum-Term Contracts - What’s the Difference? These changes apply only to fixed-term contracts , not maximum-term contracts . A fixed-term contract automatically ends on a specific date, with no notice required. A maximum-term contract , on the other hand, runs up to a certain date but can end earlier under standard termination clauses. Because of this difference, maximum-term contracts aren’t subject to the same FTCIS limitations. However, employers should be careful not to use them as a workaround. Fair Work can still view repetitive or misused maximum-term contracts as avoidance behaviour . What’s New from 1 November 2025 Here’s what’s been updated in the latest version of the FTCIS: 1️⃣ Temporary exceptions have ended for: Higher education Public hospitals These sectors now fall under the standard fixed-term contract limits unless another exception applies under their Award. 2️⃣ Temporary exceptions have been extended to 1 November 2026 for: Charities and not-for-profits (NFPs) with annual revenue under $10 million Medical and health research organisations with annual revenue under $100 million 3️⃣ Some exceptions have been made ongoing: Organised sport High-performance sport So for these sectors, the exemption continues without an end date. Why It Matters (Even If You’re Not in These Sectors) If your business uses fixed-term contracts for project work, seasonal roles, or grant-funded positions, you now need to: Issue the new FTCIS to every fixed-term employee hired from 1 November 2025 onward Check whether your contracts still meet the two-year or one-renewal rule Keep evidence if you rely on an exception, such as grant funding agreements or financial statements Avoid anti-avoidance behaviour such as rotating employees or re-labelling contracts just to extend them Failure to comply means the contract may not automatically end, leaving you exposed to unfair dismissal or redundancy claims. Action Steps for Employers Download the new FTCIS from fairwork.gov.au/ftcis Audit your current fixed-term contracts , including any renewals or casual conversions Review your onboarding process to ensure the correct information statement is issued every time Seek HR advice before offering or renewing any fixed-term arrangement beyond two years Final Word This update might sound minor, but it’s another reminder that Fair Work is tightening its grip on contract compliance. If you’re unsure whether your contracts meet the new rules or want to make sure you’re issuing the right version of the FTCIS, now’s the time for a quick check before the holiday break.
Over the past year, I’ve reviewed more than 50 employment and contractor agreements - all originally prepared by so-called experts. Some were drafted by lawyers. Others came from accountants. Many were supplied by industry bodies or pulled from ‘trusted’ HR platforms. Not one was truly compliant. In nearly every case, I found 10 to 20 issues - from outdated clauses to high-risk gaps that could leave the business wide open if something went wrong. It’s a blunt reality check: not all experts are created equal . Employment law moves fast, and generalist advice often misses the mark. If your contracts haven’t been reviewed recently - or were created by someone who doesn’t live and breathe workplace compliance - there’s a good chance they’re already outdated. Why SME Employment Conracts and Contractor Agreements Are So Often Wrong Small and medium business owners usually have good intentions — they want to do the right thing. But they also wear a lot of hats. Legal, HR, compliance... it’s a lot. So, they rely on: A law firm they used a few years back Their accountant (who probably shouldn’t be drafting employment contracts) Templates from industry bodies or HR software These options feel “safe” - but too often, they’re not. The problem is employment law isn’t static . It evolves constantly - and so do the risks. What was compliant two years ago may now be outdated or unlawful.. The Most Common Mistakes I see (Over and Over Again) Here’s what shows up in contract after contract: ❌ Outdated or unlawful clauses Flat hourly rates that ignore overtime, penalty rates or Award obligations. Standard clauses that haven’t been touched since before the last Fair Work overhaul. ❌ The wrong Award or classification Roles misclassified as Award-free. The same template used for casual, part-time and full-time staff. Missteps like these can lead straight to underpayment claims. ❌ Embedded policies inside contracts Leave policies, social media rules or performance management processes that should live outside the contract — making them impossible to update without reissuing the agreement. ❌ Missing or vague protections No privacy clauses for staff working in clients' homes. No expectations for behaviour around animals or in childcare settings. No provisions for travel, installations or factory-to-site staff movement. ❌ Misused contract types Fixed-term used where maximum-term is safer. Apprentices left on outdated agreements after qualification. Small oversights that become big problems later. ❌ Contractor agreements that blur the lines Contracts that look and read like employment agreements — exposing businesses to superannuation obligations, sham contracting claims and compliance headaches. Why This Should Worry You These aren’t small oversights - they’re high-risk compliance failures. And they can lead to: ⚠️ Underpayment or overpayment claims ⚠️ Entire contracts being ruled invalid ⚠️ Fines for unlawful terms ⚠️ Loss of legal protections if a claim arises ⚠️ Reputational damage and regulatory scrutiny For a small or growing business, even one mistake can spiral into a costly distraction. Prevention is always cheaper — and smarter — than damage control. What You Can Do Right Now Here are three practical steps every SME owner or manager can take today: Sense-check your contract types Are you using distinct templates for casuals, part-timers, full-timers and contractors? If you’re reusing one-size-fits-all documents, stop. Each role needs its own structure and legal footing. Pull policies out of contracts If you’ve got leave, conduct, or social media policies embedded in the employment contract — extract them. These should sit in your handbook or internal policy library so they can evolve without renegotiating contracts. Confirm Award coverage and classifications Go back and check whether each role in your business is: Covered by an Award (and if so, which one) Classified at the correct level Being paid according to the applicable minimums and entitlements If you don’t know how to do that - or aren’t confident in your current setup — that’s your sign to get help. Step 4 (If You’re Still Unsure): Get a Professional Contract Review If it’s been a while since you reviewed your employment or contractor agreements, or if you’ve had changes in staff, structure or Awards, it’s time. A professional contract review will identify hidden risks, explain where you stand, and show you what needs fixing - before it costs you money, time or reputation. You don’t need to have all the answers, you just need to know when to ask the right questions. Book a consultation with us now - we’ll help you revuew your contracts and ensure your business stays protected.
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