What is changing?
Nearly two years ago, the government introduced changes to workplace laws to limit the use of fixed term employment contracts, with narrow exceptions available for certain government funded roles. New temporary exemptions were introduced from 1 November 2024, including one for registered charities, but these will be expiring on 31 October 2025.
As a reminder, a fixed term employment contract is one that terminates automatically at the end of a set period such as 12 months (as opposed to a permanent employment contract which continues until it is terminated by the employee or employer).
Is my charity affected?
Your charity may be affected if it has been relying on the following exemption to use fixed term contracts. The exemption applies if:
- the employer is a registered charity
- the role is funded (wholly or partly) by government grants, another registered charity, or through a testamentary gift or contribution
- the work is to be performed for a specific program or project that the funding relates to
- if the employee is employed or was previously employed by the registered charity, the contract can't result in an employment term over seven years
- the funded project or program runs for five years or less
- the term of the contract is substantially the same as the project
- the employee is not covered by the Higher Education Staff Award or Higher Education General Staff Award
- the funding was granted on or after 1 November 2024, and
- the contract starts after 1 November 2024 and before 1 November 2025.
Any fixed-term contracts your charity has already entered into in accordance with this exemption will not be affected. However, after 31 October 2025 your charity won’t be able to use this exemption for new fixed term contracts.
Is my charity affected?
These exemptions will expire on 31 October 2025, so it’s a good time to review your arrangements and get some advice if you think you’ll be affected. Advocacy is underway to push for an extension, and we’ll post updates in future newsletters. For more information, check out our recently updated factsheet on fixed term contracts and the guidance from the Fair Work Ombudsman.
