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 $190,100 (2026-27) 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, or covering another employee's absence (such as parental leave); (6) a governance position held for a limited time under the organisation's governing rules; (7) where a modern award expressly permits longer arrangements; (8) government or research grant-funded roles. Casual employees aren't covered by the cap at all, because they aren't fixed-term employees. Many employers misapply these — the 'specialised skills' exception in particular is narrower than employers typically claim.

Do the charity and medical research fixed-term exceptions end on 1 November 2026?

No — they have been extended. The Fair Work Ombudsman's guidance (updated 30 September 2026) says these exceptions only apply to contracts entered into before 1 November 2026 'unless those exceptions are extended'. The Fair Work Amendment (Fixed Term Contracts) Regulations 2026 (F2026L01352, made 1 October 2026, commencing 1 November 2026) removed that end date from regulations 2.15(7) and 2.15(9) of the Fair Work Regulations 2009, so both exceptions continue. For contracts entered into on or after 1 November 2026, the position must be more than 50% funded by government, philanthropic or testamentary sources (previously 'in whole or in part'). The revenue test still applies: under $10 million for charities and under $100 million for medical or health research employers. Last verified 8 October 2026.

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?

The limits apply to fixed-term contracts entered into on or after 6 December 2023. Contracts made before that date weren't themselves capped, but the Fair Work Ombudsman says earlier contracts can be counted when working out whether a new contract (made on or after 6 December 2023) breaches the consecutive-contract or 2-year limit.

Fixed-Term Contract Cap Checker

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

Last verified: 2 August 2026Jump to calculator ↓

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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