Non Fixed Term Contract Template for Australia

A non fixed term contract establishes a permanent employment relationship between you as the employer and your employee, providing ongoing employment without a predetermined end date. Unlike fixed-term contracts that expire on a specific date or casual employment arrangements, this agreement creates a continuous employment relationship governed by Australian employment law, offering both parties greater security and clarity regarding their ongoing obligations.

When do you need this document?

You need this contract when hiring employees for permanent positions in your organisation. This applies whether you're recruiting for full-time or part-time roles where you intend the employment to continue indefinitely, subject to performance and business requirements. The contract is essential when establishing roles that form part of your core workforce, such as administrative staff, managers, technical specialists, or any position where you want to provide job security and attract quality candidates. You'll also need this document when converting casual or fixed-term employees to permanent status, ensuring their employment terms reflect the change in their employment arrangement.

Key legal considerations

Your contract must comply with the National Employment Standards under the Fair Work Act 2009, which sets out 11 minimum entitlements including maximum weekly hours, annual leave, personal leave, and notice of termination. You must ensure the agreement doesn't contain terms less favourable than those in applicable modern awards or enterprise agreements that cover your industry or occupation. Include clear probationary period terms, typically 3-6 months for most positions, during which different notice periods may apply. Address intellectual property ownership, confidentiality obligations, and restraint of trade clauses carefully, ensuring they're reasonable and protect legitimate business interests. Consider superannuation guarantee obligations, requiring you to contribute at least 11% of ordinary time earnings to your employee's nominated superannuation fund.

Legal requirements in Australia

Under Australian law, you must provide written terms and conditions of employment, either through this contract or a separate statement of employment. The agreement must specify the employee's classification under the relevant modern award and ensure compliance with minimum wage requirements. Include provisions for workplace health and safety obligations under the Work Health and Safety Act 2011, requiring you to provide a safe working environment. Address privacy obligations under the Privacy Act 1988 regarding the collection, use, and storage of employee personal information. Ensure anti-discrimination compliance by avoiding terms that could constitute unlawful discrimination based on protected attributes. Your contract should also address termination procedures, including minimum notice periods, redundancy entitlements where applicable, and circumstances that may constitute serious misconduct justifying summary dismissal. Consider including dispute resolution procedures that encourage early resolution of workplace issues before formal proceedings.