What is the fixed-term contract cap in Australia?

Section 333E of the Fair Work Act 2009 (inserted by the Secure Jobs, Better Pay Act 2022, in effect 6 December 2023) caps fixed-term contracts at: (a) two consecutive contracts, or (b) two years combined duration — whichever comes first. Once breached, the fixed-term termination date 'is of no effect' — meaning the worker is treated as a permanent employee from that point. Several exceptions apply under s333F.

What happens if my employer breaches the fixed-term cap?

Two consequences. First, you become a permanent employee — entitled to all NES protections including paid annual leave (4 weeks/year), paid personal leave (10 days/year), parental leave, redundancy pay where applicable, and unfair dismissal protection (after minimum employment period). Second, if the employer relied on the fixed-term termination date to end your employment, the termination is invalid — you may have grounds for an unfair dismissal claim. Lodge within 21 days at the FWC.

What are the exceptions to the fixed-term cap?

Section 333F lists exceptions: (1) high-income threshold — workers earning above $175,000 (2025-26) are exempt; (2) specialised skills — work the employer doesn't normally need ongoing; (3) training arrangement — apprenticeships, traineeships, cadetships; (4) essential work meeting temporary peak demand; (5) emergency circumstances; (6) casual engagements (which aren't fixed-term anyway); (7) where a modern award expressly permits longer arrangements; (8) government or research grant-funded roles. Many employers misapply these — the 'specialised skills' exception in particular is narrower than employers typically claim.

Does the cap apply to academics, teachers, and government workers?

Generally yes, but several exceptions are relevant. Government / research grant-funded roles are expressly excluded under s333F, as are some academic roles in modern awards. Teachers on rolling fixed-term contracts at independent schools are usually NOT excluded — those engagements should comply with the 2-year / 2-renewal cap. The cap applies regardless of whether you're full-time, part-time, or on a 0.6 FTE arrangement.

Do contracts before 6 December 2023 count toward the cap?

Only contracts entered into on or after 6 December 2023 count toward the 2-renewal / 2-year cap. Contracts existing before that date are 'grandfathered' for cap purposes (though they may still be relevant for other entitlements like long service leave). If your first cap-relevant contract started in 2024 and you've had 3 contracts since, the cap is breached.

Fixed-Term Contract Cap Checker

Brand-new 2023 reform: fixed-term contracts max out at 2 renewals OR 2 years combined. Past that, you're automatically permanent — and any non-renewal "termination" may be invalid. Check your contracts.

Last verified: 1 July 2025

Your fixed-term contracts (with this employer, since Dec 2023)

Add each consecutive fixed-term contract you've had with the same employer. Renewals and extensions count as separate contracts under s333E.

Contract 1

Start date

End date

Does an exception apply?

Section 333F lists exceptions to the cap. Most don't apply to most workers. If unsure, leave on "none".

My most recent contract has ended (employer didn't renew, or said the fixed-term "expired")

Sources

• Fair Work Act 2009 (Cth) ss333E, 333F (inserted by Secure Jobs, Better Pay Act 2022, in effect 6 December 2023)
• Fair Work Information Statement — Fixed Term Contracts (FWO)
• High income threshold $175,000 for 2025-26 (FWC)
• Last verified 2026-05-02.

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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.

Fixed-Term Contract Cap Checker

Your fixed-term contracts (with this employer, since Dec 2023)

Does an exception apply?

Sources

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