Fixed term contract update for employers

The Fair Work Ombudsman released a new version of the Fixed Term Contract Information Statement (FTCIS). Employers must start using this updated version from 1 November 2025.

If you engage someone on a fixed term contract, for example for maternity cover, grant-funded work, short projects or seasonal demand, you must give them the FTCIS when they start. It is provided alongside:

• the Fair Work Information Statement
• the Casual Employment Information Statement (if the employee is casual)

For small businesses without a dedicated HR team, this statement plays an important role in clearly setting expectations and protecting against compliance risks.

Since 6 December 2023, limits have applied to:

• how long fixed term contracts can run
• how many times they can be renewed

These changes were introduced to stop businesses relying on back-to-back temporary contracts instead of offering secure ongoing roles.

Some industries were given temporary exceptions, including charities and not-for-profit organisations. These have now been reviewed, and the FTCIS has been updated to reflect which exceptions remain, change or end.

For small businesses that regularly use fixed term contracts to manage cashflow or workload fluctuations, this update directly affects how contracts should be issued and renewed.

The updated FTCIS reflects changes to industry exceptions, including:

• some temporary exceptions ending from 1 November 2025

• some being extended until 1 November 2026 with stricter conditions

• some becoming ongoing

For example, higher education and some public hospital roles will no longer be covered by temporary exceptions. Other sectors, like charities, not-for-profits and medical or health research, may still access exceptions, but only for a limited time and only if they meet the new requirements.

From 1 November 2025, small businesses must ensure they are issuing the current FTCIS for all new fixed term contracts. We recommend giving staff the link to the Fixed Term Contract Information Statement on the Fair Work Ombudsman website so they always have the most up-to-date version.

Practical steps that can be completed in under an hour include:

• downloading the latest FTCIS from Fair Work
• replacing any old versions saved in templates or onboarding packs
• checking existing fixed term contracts for risky renewal patterns
• assigning responsibility to one person (owner, manager or bookkeeper)
• flagging the change with anyone involved in hiring or payroll

These small changes help protect your business from avoidable compliance issues.

Continuing to use an old FTCIS may expose your business to:

• Fair Work compliance action
• disputes over contract validity
• unintended permanent employment obligations
• damage to employee trust and workplace relationships

For small businesses, even minor compliance issues can quickly become costly.

If you regularly hire staff for short-term or project-based roles, now is the time to review your process.