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Fixed Term Agreement Template for Australia

An Australian Fixed Term Employment Agreement is a legally binding contract that establishes a temporary employment relationship with a defined start and end date. This agreement complies with the Fair Work Act 2009 and related Australian employment legislation, setting out the terms and conditions of employment including remuneration, duties, hours of work, and entitlements. The document incorporates mandatory provisions required by Australian law while allowing flexibility to address specific role requirements and industry standards. It serves as a comprehensive framework for temporary employment arrangements, ensuring both employer and employee rights and obligations are clearly defined within the Australian legal context.

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What is a Fixed Term Agreement?

The Fixed Term Employment Agreement is designed for situations where an employer needs to engage staff for a specific period or project in Australia. This document type is commonly used for project-based work, parental leave coverage, seasonal work, or funding-dependent positions. The agreement must comply with the Fair Work Act 2009 and related Australian employment legislation, including the National Employment Standards. It includes essential provisions such as term duration, role responsibilities, remuneration, benefits, and termination conditions. The agreement is particularly important in protecting both parties' interests by clearly defining the temporary nature of the employment relationship and ensuring all statutory requirements are met. Use of this Fixed Term Agreement is recommended whenever engaging employees for a pre-determined period in Australia, whether for short-term contracts or longer fixed-duration projects.

What sections should be included in a Fixed Term Agreement?

1. Parties: Identifies the employer and employee with their full legal names and relevant details

2. Background: Brief context of the employment arrangement and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Term of Employment: Specifies the fixed term duration, start date, end date, and any possibility of extension

5. Role and Duties: Details the position title, key responsibilities, and reporting relationships

6. Place of Work: Specifies primary work location and any flexibility arrangements

7. Hours of Work: Details standard working hours, breaks, and overtime arrangements

8. Remuneration: Outlines salary, payment frequency, and superannuation arrangements

9. Leave Entitlements: Covers annual leave, personal/carer's leave, and other statutory leave types

10. Confidentiality: Obligations regarding confidential information and intellectual property

11. Policies and Procedures: Reference to workplace policies and obligation to comply

12. Termination: Grounds for termination, notice periods, and end of fixed term arrangements

13. Post-Employment Obligations: Return of company property and ongoing confidentiality obligations

14. General Provisions: Standard boilerplate clauses including governing law and entire agreement

What sections are optional to include in a Fixed Term Agreement?

1. Probation Period: Include when the employer wants to implement an initial probation period

2. Bonus and Incentives: Include when offering performance-based bonuses or other incentive schemes

3. Relocation: Include when the role involves relocation or travel requirements

4. Professional Development: Include when offering specific training or development opportunities

5. Equipment and Tools: Include when providing specific company equipment or tools

6. Non-Compete Clause: Include when requiring post-employment restrictions on working for competitors

7. Flexible Working Arrangements: Include when offering specific flexible work arrangements

8. Additional Benefits: Include when offering benefits above statutory requirements

9. KPIs and Performance Measures: Include when specifying detailed performance expectations

10. Gardening Leave: Include when requiring the option to place employee on paid leave during notice period

What schedules should be included in a Fixed Term Agreement?

1. Schedule 1 - Position Description: Detailed description of role, responsibilities, and requirements

2. Schedule 2 - Remuneration Details: Breakdown of salary package, allowances, and benefits

3. Schedule 3 - Company Policies: List of applicable workplace policies

4. Schedule 4 - Performance Criteria: Specific KPIs or performance measures if applicable

5. Appendix A - Statutory Statement: Fair Work Information Statement and other required notices

6. Appendix B - Confidential Information: Detailed description of what constitutes confidential information

7. Appendix C - Approved Secondary Employment: If applicable, details of approved outside work activities

Authors

Alex Denne

Advisor @ 蜜桃传媒AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Document Type

Sector

Cost

Free to use

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