Fixed-term or contract employment

Entitlements for people employed on a fixed term or contract basis

Fixed term employees may also be called contract employees. Fixed term employees are hired for a fixed period of time to work on a specific task or project.

Fixed term employment may be an appropriate option to replace employees who are absent for a set period of time such as for long service leave or parental leave, or to work on a particular finite project.

Fixed term employees are generally entitled to the same wages and conditions of employment as full-time or part-time employees, depending on the hours worked, but on a proportionate basis for the period of their employment. That is, if employees are full-time for six months, they are entitled to two weeks annual leave and one week sick leave.

It is important that when fixed term employees are hired, the length of employment is agreed in advance and formalised in writing. If at the end of the contract the employees are needed for a further finite period then a new contract must be formalised. If ongoing work is available employers should consider offering employees this employment. Should employers provide continuous contracts over an extended period of time, employees may be deemed to be ongoing employees if the situation is tested in court.