Guidance
Fixed-term contract cap (s 333E)
Cap on consecutive fixed-term contracts (2 years / 2 contracts) from 6 December 2023.
In plain English
This guidance explains limits on consecutive fixed-term contracts for employees.
The Fair Work Ombudsman (FWO) provides guidance on the fixed-term contract cap. It applies to employers using fixed-term contracts. Generally, employees cannot work on more than two consecutive fixed-term contracts, or a total of two years. This rule started on 6 December 2023. The guidance explains how to calculate consecutive contracts.
Why it matters
SMBs using fixed-term contracts need to review their employment practices. Failing to comply with this rule could mean contracts are treated as ongoing employment.
AI-assisted summary, grounded in the source link below. Generated 2026-05-23 via gemma3:12b.
Issuing regulator
FWO →Topics
Source: https://fairwork.gov.au/employee-entitlements/types-of-employees/fixed-term-contract-employees. Rules Mate indexes + summarises; always verify against the regulator's live publication.