New Rules for Fixed Term Contracts: What Do They Mean for Australian Businesses?
Sally Dillon • December 18, 2023
New Rules for Fixed Term Contracts: What Do They Mean for Australian Businesses?
As 2023 draws to a close, it's essential for Australian employers and employees to be well-informed about the major changes to fixed-term and maximum-term contracts that took effect on 6 December 6, 2023. These modifications, integral to the "Secure Jobs, Better Pay" initiative, aim to enhance transparency and fairness in employment contracts. Let’s explore these updates and understand their impact.
Introduction of Fixed Term Contract Information Statement (FTCIS)
From 6 December 2023, a new obligation falls on employers to provide a Fixed Term Contract Information Statement to employees entering new fixed-term contracts. This statement is designed to elucidate the specifics of fixed-term employment, including the new rules on their permissible use.
Dual Compliance: FTCIS and Fair Work Information Statement
Employers now face a dual responsibility: along with the FTCIS, they must also provide the Fair Work Information Statement (FWIS) to all new employees. This statement details the fundamental workplace rights and entitlements.
Understanding the Limitations on Fixed-Term Contracts
The recent updates introduce specific limitations concerning the duration, renewal, and consecutive use of fixed-term contracts. These include a maximum duration of two years for contracts (including extensions), restrictions on renewals, and stringent criteria for consecutive contracts.
Protections Against Contract Manipulation
To prevent circumvention of these rules, the new regulations include protections against actions such as early termination of employment or job role modifications solely to avoid compliance with the law.
Exceptions to the Limitations
Notably, there are exceptions to these limitations, catering to specialised skills, training arrangements, high-income employees, appointments linked to funding and other specific scenarios. It’s crucial to understand these exceptions for correct application of the rules.
Pre-December 2023 Contracts
Contracts entered before 6 December 2023, are exempt from these new limitations but are relevant when applying consecutive contract limitations to new contracts made after this date.
Dispute Resolution and Enforcement
In case of disagreements, the Fair Work Commission offers a platform for resolving disputes, and the Fair Work Ombudsman holds the power to initiate legal proceedings for any breaches of these provisions.
Other Entitlements and Considerations
Fixed-term employees generally enjoy the same entitlements as permanent staff. However, the terms of termination and the distinction from independent contracting are critical aspects to consider.
Key Takeaways
Prompt Provision of FTCIS and FWIS:
Employers must ensure timely delivery of both the Fixed Term Contract Information Statement and the Fair Work Information Statement to new employees.
Adherence to Contract Limitations:
Careful review and structuring of fixed and maximum term contracts are necessary to comply with the new duration, renewal, and consecutive contract limitations.
Good Faith Employment Practices:
Employers are expected to act in good faith and not manipulate contract terms to circumvent the new regulations.
Understanding Exceptions:
A thorough understanding of the exceptions to these limitations is crucial for proper application of the rules to avoid mistakes and potential costly payouts, fines and penalties.
Historical Contract Review:
Contracts entered into before 6 December 2023 should be reviewed for their impact on new agreements post this date.
Awareness of Dispute Resolution Avenues:
Both parties should be aware of their rights and the available platforms for resolving disputes.
Equitable Entitlements:
Employers should ensure that fixed-term employees receive their rightful entitlements and understand the termination conditions applicable to these contracts.
Final Thoughts: These changes signify an important evolution in the management of maximum and fixed term contracts in Australia. Awareness and compliance with these rules are essential for fair and legal employment practices.
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Introduction HR is one of the most misunderstood roles in business. Some believe HR exists to protect employees. Others think HR’s sole job is to defend the company. Both are wrong. And this misunderstanding is costing businesses money, trust, and talent. For over two decades, I’ve seen organisations sideline HR - treating them as a policy enforcer or an afterthought. The result? 🚨 Employees don’t trust HR. 🚨 Leaders fail to leverage HR strategically. 🚨 Businesses struggle with culture, retention, and performance. But here’s the truth: HR isn’t about sides. It’s about solutions. Great HR drives business outcomes by balancing people and performance. The question is: Are you using HR to its full potential? HR as a Strategic Powerhouse, Not Just a Policy Enforcer The best businesses don’t just "have" an HR department. They embed HR into leadership decisions. HR isn’t just about hiring, firing, and compliance - it’s about: ✅ Shaping culture and engagement (which directly impacts performance). ✅ Developing leadership capabilities (to create stronger teams). ✅ Driving strategic workforce planning (so you have the right people, in the right roles, at the right time). ✅ Maximising financial impact - because people are both your biggest cost and your greatest asset. If your HR function isn’t influencing leadership, growth, and profitability , you're leaving money on the table. HR as a Key Voice on Your Leadership Team Many leadership teams still treat HR as a support function rather than a core business driver. That’s a mistake. Your Chief People Officer (CPO) or HR Director should have the same level of influence as your CFO, COO, or Head of Sales. Why? Because your people strategy IS your business strategy. 🔹 You wouldn’t make financial decisions without consulting your CFO. 🔹 You wouldn’t make operational changes without your COO’s input. 🔹 So why make leadership and talent decisions without HR at the table ? And yet, in many businesses, HR reports to finance, operations, or admin - departments that have their own agenda when it comes to assessing people needs, budgets, and workforce requirements. HR should report directly to the CEO, or Business Owner to ensure people strategy is aligned with business strategy - not just budget constraints or operational efficiency. Because when HR is filtered through another department’s lens, critical workforce decisions become secondary to financial targets, logistical priorities, or admin processes. If your HR leader doesn’t report directly to the top, you may be unknowingly limiting their ability to drive real business outcomes. Are You Using HR to Its Full Potential? Take a moment and ask yourself: ❓ If you have an in-house HR team, are you using their skills and expertise across all areas of your business? Or are they stuck in admin-heavy tasks, when they could be driving strategic initiatives? ❓ If you’re a small or medium business and don’t have in-house HR, why haven’t you partnered with an external consultant? What’s stopping you from leveraging the expertise that could transform your business? In larger businesses, HR should go beyond just ‘HR.’ Under an expanded People & Culture framework, HR should oversee: ✔ Training & Development – ensuring leaders and employees are constantly upskilling. ✔ Work Health & Safety – making compliance, risk management, and employee wellbeing a priority. ✔ Recruitment & Talent Strategy – not just filling roles but attracting and retaining top performers. ✔ Major Projects & Change Management – ensuring workforce alignment with organisational shifts. In smaller businesses , these functions can be outsourced or strategically managed by an external HR consultant working directly with the business owner. This ensures a strong, aligned people strategy, while certain operational roles (finance, admin, or operations) may take on specific HR tasks - as long as they receive the right training, support, and strategic direction. HR isn’t just a department - it’s an investment in your business’s future. Whether in-house or external, make sure your HR function is working at a strategic level, not just buried in paperwork. HR’s Impact on the Bottom Line People aren’t just a cost centre - they are a profit driver. 📊 Labour is often one of the largest expenses in a business - so managing it strategically impacts profitability. 📊 Engaged employees are 23% more profitable , according to Gallup. 📊 Turnover costs 50-200% of an employee’s salary - losing top talent is expensive. When HR has a strategic voice in leadership , businesses see: ✔ Stronger alignment between business goals and people strategy. ✔ Faster, smarter hiring that supports growth. ✔ Better leadership development , reducing costly turnover. ✔ More effective workforce planning , so salaries, training, and hiring are investments—not wasted costs. Final Thought: HR is Not a Department - It’s a Business Growth Lever If your HR function feels like a compliance department , you’re doing it wrong. HR should be a leadership asset , helping your business make smarter, people-focused decisions. So, here’s my challenge to you: 📌 If you’re a CEO or MD - bring HR into the strategy conversation early and often. 📌 If you’re a leader - use HR as a coaching and development resource, not just a policy checker or problem fixer. 📌 If you’re in HR - push for a strategic role in leadership, not just operational support. Because when HR and leadership align , businesses don’t just succeed. They thrive. Want to Develop Stronger, More Strategic Leaders? If you’re serious about building leadership capability in your business, let’s talk. My Leadership Dynamics Accellerator Program helps CEOs, Business Owners, Leaders and HR teams create high-performing leaders who know how to balance people and performance. 📅 Book a free leadership triage call to see how we can help here . 🚀 Save your spot in our next Leadership Dynamics Accelerator Program here . 📩 Send us an email for more information here . Let’s build something stronger - together.
Is The Monkey Still Relevant? In the world of modern management, the concept of "Management Time: Who’s Got the Monkey?" by William Oncken Jr. and Donald L. Wass still resonates deeply. Originally published in 1974 and revisited multiple times, this seminal article sheds light on a perennial issue: managers overwhelmed by tasks while subordinates seem to have ample time and energy. Understanding Management Time Today Managers today face a quartet of time demands: Boss-imposed time: Tasks directly mandated by superiors, non-negotiable and swiftly penalised if neglected. System-imposed time: Requests from peers for support, vital for organisational harmony and efficiency. Self-imposed time: Initiatives and tasks originating from the manager themselves, including tasks delegated by subordinates. Team member-imposed time: Requests, questions, or tasks initiated by team members that require the manager's attention or input. The challenge lies in balancing these demands to maximise discretionary time—time not governed by external pressures and crucial for strategic decision-making. The Monkey Metaphor in Today’s Workplace Imagine a manager walking down the hallway, stopped by a subordinate with an urgent issue. Initially, the problem is the subordinate's ("the monkey is on their back"). However, as the manager engages without immediately resolving, the monkey leaps to the manager's back. This shift represents how subordinates can inadvertently burden managers with their tasks and decisions. Practical Leadership Takeaways Empowerment through Initiative: Managers should foster a culture where subordinates take initiative and responsibility. This not only lightens the manager’s load but also enhances team autonomy and morale. Clear Communication: Setting clear boundaries and expectations prevents monkeys from leaping onto the manager's back. Discussions should clarify who owns the next steps and when they should be completed. Time Management: Effective time management is not just about personal efficiency but about strategically using discretionary time to focus on high-impact tasks and strategic priorities. Implementing Modern Strategies Today's managers must proactively manage their time and responsibilities: Appointment-Based Support: Engage with subordinates by appointment rather than ad-hoc interruptions to manage tasks effectively. Documentation and Follow-Up: Use technology and structured communication tools to document tasks and progress, ensuring clarity and accountability without burdening the manager. Training and Empowerment: Invest in training programs that empower subordinates to handle tasks independently and make informed decisions. Conclusion The timeless lesson from "Management Time: Who’s Got the Monkey?" remains clear: managers must reclaim control over their time by preventing subordinate tasks from becoming their own. By fostering initiative, setting clear boundaries, and leveraging technology, modern leaders can achieve greater efficiency and effectiveness in their roles. This approach not only reduces stress but also enhances organisational productivity and employee satisfaction—a win-win for managers navigating today’s complex business environments. You can read the original HBR Article here. Further Enhance Your Leadership Skills If you find yourself grappling with the challenges of balancing managerial responsibilities and empowering your team effectively, consider exploring our Leadership Dynamics Program at Revolution Consulting Group. Designed to equip leaders with modern strategies and practical tools, our program focuses on fostering a culture of accountability, enhancing team dynamics, and maximising leadership potential. Whether you're looking to refine your leadership approach or empower your team to take on greater responsibilities, our tailored coaching and training solutions can support your journey towards becoming a more effective and influential leader. Click here to book an free Triage Call to find out about how our 12 week Leadership Dynamics Program can benefit you. Click here to join our mailing list to get more tips, advice and updates on all things HR and Leadership.
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Introduction HR is one of the most misunderstood roles in business. Some believe HR exists to protect employees. Others think HR’s sole job is to defend the company. Both are wrong. And this misunderstanding is costing businesses money, trust, and talent. For over two decades, I’ve seen organisations sideline HR - treating them as a policy enforcer or an afterthought. The result? 🚨 Employees don’t trust HR. 🚨 Leaders fail to leverage HR strategically. 🚨 Businesses struggle with culture, retention, and performance. But here’s the truth: HR isn’t about sides. It’s about solutions. Great HR drives business outcomes by balancing people and performance. The question is: Are you using HR to its full potential? HR as a Strategic Powerhouse, Not Just a Policy Enforcer The best businesses don’t just "have" an HR department. They embed HR into leadership decisions. HR isn’t just about hiring, firing, and compliance - it’s about: ✅ Shaping culture and engagement (which directly impacts performance). ✅ Developing leadership capabilities (to create stronger teams). ✅ Driving strategic workforce planning (so you have the right people, in the right roles, at the right time). ✅ Maximising financial impact - because people are both your biggest cost and your greatest asset. If your HR function isn’t influencing leadership, growth, and profitability , you're leaving money on the table. HR as a Key Voice on Your Leadership Team Many leadership teams still treat HR as a support function rather than a core business driver. That’s a mistake. Your Chief People Officer (CPO) or HR Director should have the same level of influence as your CFO, COO, or Head of Sales. Why? Because your people strategy IS your business strategy. 🔹 You wouldn’t make financial decisions without consulting your CFO. 🔹 You wouldn’t make operational changes without your COO’s input. 🔹 So why make leadership and talent decisions without HR at the table ? And yet, in many businesses, HR reports to finance, operations, or admin - departments that have their own agenda when it comes to assessing people needs, budgets, and workforce requirements. HR should report directly to the CEO, or Business Owner to ensure people strategy is aligned with business strategy - not just budget constraints or operational efficiency. Because when HR is filtered through another department’s lens, critical workforce decisions become secondary to financial targets, logistical priorities, or admin processes. If your HR leader doesn’t report directly to the top, you may be unknowingly limiting their ability to drive real business outcomes. Are You Using HR to Its Full Potential? Take a moment and ask yourself: ❓ If you have an in-house HR team, are you using their skills and expertise across all areas of your business? Or are they stuck in admin-heavy tasks, when they could be driving strategic initiatives? ❓ If you’re a small or medium business and don’t have in-house HR, why haven’t you partnered with an external consultant? What’s stopping you from leveraging the expertise that could transform your business? In larger businesses, HR should go beyond just ‘HR.’ Under an expanded People & Culture framework, HR should oversee: ✔ Training & Development – ensuring leaders and employees are constantly upskilling. ✔ Work Health & Safety – making compliance, risk management, and employee wellbeing a priority. ✔ Recruitment & Talent Strategy – not just filling roles but attracting and retaining top performers. ✔ Major Projects & Change Management – ensuring workforce alignment with organisational shifts. In smaller businesses , these functions can be outsourced or strategically managed by an external HR consultant working directly with the business owner. This ensures a strong, aligned people strategy, while certain operational roles (finance, admin, or operations) may take on specific HR tasks - as long as they receive the right training, support, and strategic direction. HR isn’t just a department - it’s an investment in your business’s future. Whether in-house or external, make sure your HR function is working at a strategic level, not just buried in paperwork. HR’s Impact on the Bottom Line People aren’t just a cost centre - they are a profit driver. 📊 Labour is often one of the largest expenses in a business - so managing it strategically impacts profitability. 📊 Engaged employees are 23% more profitable , according to Gallup. 📊 Turnover costs 50-200% of an employee’s salary - losing top talent is expensive. When HR has a strategic voice in leadership , businesses see: ✔ Stronger alignment between business goals and people strategy. ✔ Faster, smarter hiring that supports growth. ✔ Better leadership development , reducing costly turnover. ✔ More effective workforce planning , so salaries, training, and hiring are investments—not wasted costs. Final Thought: HR is Not a Department - It’s a Business Growth Lever If your HR function feels like a compliance department , you’re doing it wrong. HR should be a leadership asset , helping your business make smarter, people-focused decisions. So, here’s my challenge to you: 📌 If you’re a CEO or MD - bring HR into the strategy conversation early and often. 📌 If you’re a leader - use HR as a coaching and development resource, not just a policy checker or problem fixer. 📌 If you’re in HR - push for a strategic role in leadership, not just operational support. Because when HR and leadership align , businesses don’t just succeed. They thrive. Want to Develop Stronger, More Strategic Leaders? If you’re serious about building leadership capability in your business, let’s talk. My Leadership Dynamics Accellerator Program helps CEOs, Business Owners, Leaders and HR teams create high-performing leaders who know how to balance people and performance. 📅 Book a free leadership triage call to see how we can help here . 🚀 Save your spot in our next Leadership Dynamics Accelerator Program here . 📩 Send us an email for more information here . Let’s build something stronger - together.
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