Fixed-term employment contract template

Free Docusign Fixed Term Employment Agreement

Use this free fixed term employment agreement to ensure you legally and professionally engage employees for temporary or project-based roles in Australia. 

Docusign's fixed term employment contract template is easily customisable to specify the reason for the fixed term, the set end date, and the specific duties. Once the contract is completed with the required details, you can securely share the document via a Docusign envelope to the prospective employee for their electronic signature. After the employee signs, the executed agreement is securely stored in your Docusign account for record-keeping, downloading, or printing.

Overview

In Australia, a fixed term contract is defined by its pre-determined end date (the "End Date"), at which point the contract automatically terminates without the need for notice, unless the contract specifies otherwise. Unlike a permanent employee, the employee and employer are generally committed to the entire period specified in the contract.

The use of fixed term employment contracts is governed by the Fair Work Act 2009, which includes duration and renewal limits:

• Duration Limit: A contract generally cannot be for longer than two years, including any extensions or renewals.

• Renewal Limit: An employer generally cannot offer a contract for the same or substantially similar work if it results in the employee being on a fixed term contract for more than two consecutive terms.

The contract must clearly state the genuine reason for being a fixed term (e.g., project-based work, parental leave cover). Even as a fixed-term employee, the individual is entitled to the same minimum entitlements as comparable permanent employees under the National Employment Standards (NES), including annual leave and personal leave accrued pro rata.

Who It's For

This fixed term employment agreement is designed for Australian employers who need to engage staff for time-limited roles.

The template is highly suitable for employment in roles such as:

• Temporary Replacement: Hiring an employee to cover a staff member taking temporary leave, such as parental leave or long service leave.

• Specific Project Work: Engaging an employee for a distinct and identifiable task that requires specialised skills or has a clear project timeline.

• Temporary Funding: Roles that are wholly or partially government-funded for a limited duration, where there is no reasonable prospect of the funding being renewed.

• Seasonal or Peak Demand: Essential work during a genuine peak demand period.

Purpose of the Agreement

The primary purpose of the fixed term employment contract is to create certainty for both parties by establishing a clear relationship with a defined end. The agreement ensures:

• Clarity of Purpose: It forces the employer to state a specific reason for the fixed term.

• Clear Termination: It formalises that the employment will automatically conclude on the End Date without notice, helping to prevent an expectation of ongoing employment or potential unfair dismissal claims relating to the non-renewal of the contract.

• Mandatory Entitlements: It documents the employee's minimum entitlements, such as leave accruals and superannuation contributions, in compliance with the NES.

Key Clauses and Information

The fixed term contract must contain specific clauses that adhere to Australian employment law:

• Commencement and Term: Clearly states the Commencement Date and the specific End Date. It includes a required field to explicitly state the reason for the fixed term.

• Position and Duties: Outlines the Job Title, reporting structure, and confirms that duties are set out in an attached Position Description.

• Remuneration and Superannuation: Specifies the Annual Salary, pay frequency, and confirms the employer will deduct PAYG tax and make superannuation contributions in accordance with the Superannuation Guarantee (Administration) Act 1992.

• Leave Entitlements: Confirms entitlements align with the National Employment Standards (NES), including four weeks of paid annual leave and ten days of paid personal/carer's leave, accrued on a pro-rata basis for the contract duration.

• Confidentiality and IP: Includes ongoing obligations not to disclose the employer’s confidential information and confirms that all intellectual property created during the employment will be the sole property of the Employer.

• Termination: States that the agreement automatically terminates on the End Date. It also includes clauses for early termination by either party with notice, or immediate termination by the employer for serious misconduct (e.g., theft, fraud, or bullying).

• Governing Law: Specifies that the agreement is governed by the laws of the relevant Australian State or Territory.