Amendments to the Fair Work Act 2009 (FWA) which took effect on 7 December 2023 introduce new rules in relation to fixed term contracts.  These rules mean that a contract of employment must not include a term that provides that the contract will end at the end of a particular period (fixed term) if the period is greater than two years or the contract can be renewed so that the employee is employed for a fixed term of more than two years.  The rules also include consecutive contracts if a previous contract was for a fixed term, the previous contract was for the employee to perform the same or substantially similar work as the current contract, there is substantial continuity of the employment relationship during the period between the previous contract terminating and the current contract coming into effect and the other conditions are met (including that the sum of the period for which the previous and current contracts have effect is greater than two years).   The prohibition against fixed term contracts which apply for more than two years is a civil remedy provision, meaning that an employer who enters into such a contract may be found by a Court to have contravened the FWA and be the subject of a substantial monetary penalty.  The prohibition also renders void any contractual provision that breaches it. Exceptions to the new rules include where: the employee’s earnings in the year the contract is entered into exceed the high income threshold (currently $167,500); the employee’s employment is covered by a Modern Award with a term permitting a fixed term contract; the employee is engaged under the contract to only perform a distinct and identifiable task involving specialised skills or a training arrangement or to undertake work in an emergency circumstance or during the temporary absence of another employee; and, the contract relates to a position which is funded by government, the funding is for more than two years and there are no reasonable prospects that the funding will be renewed.  If an employer seeks to rely on an exception in any proceedings for a civil penalty order, the employer bears the onus of proof.  Employers are prohibited from engaging in anti-avoidance measures (e.g. terminating employment for a period, delaying re-engaging of the employee for a period, changing the nature of the work the employee is required to perform).  Employers who enter into a fixed term contract must provide the employee with a Fixed Term Contract Information Statement (which has been prepared by the Fair Work Ombudsman) as soon as practicable after the contract has been entered into.  If there is a dispute between the employer and employee about the operation of the FWA in relation to fixed term contracts, the parties must in the first instance attempt to resolve the matter.  If they are unable to resolve the dispute, it may be referred to the Fair Work Commission (FWC).  The FWC can deal with the matter by mediation, conciliation, making a recommendation or expressing an opinion.  Subject to the consent of the parties, the FWC may deal with the matter by arbitration hearing.  The new rules apply to fixed term contracts which are entered into from 7 December 2023 onwards, including consecutive contracts where the previous contract was made before 7 December 2023 but the new contract is entered into on or after 7 December 2023.  If you are unsure about how the new rules apply to you, please seek legal advice.