Employers across Australia‘s charity, not-for-profit, and medical and healthcare research sectors should be aware of an important compliance deadline regarding Australian fixed-term contract exemptions – which is fast approaching on 1st November 2026.
For the past two years, these sectors have benefited from temporary exemptions to Australian fixed-term contract exemptions. Unless a further extension is introduced, any fixed-term contracts entered into on or after 1st November 2026 will need to comply with the standard requirements under Australia’s Fair Work framework.
What’s Changing with Australian Fixed-Term Contract Exemptions?
The temporary exemptions currently available to eligible charities, not-for-profit organisations, and medical and healthcare research employers will no longer apply to new fixed-term contracts entered into from 1st November 2026. Organisations that have relied on these arrangements will need to ensure future agreements meet the standard fixed-term contract rules unless another legislative exception applies.
These exemptions were introduced to support organisations that regularly depend on grant funding, project-based work and time-limited research activities. Although the exemption period has previously been extended, it is currently scheduled to end on 1st November 2026 – which is when the Fair Work Amendment (Fixed Term Contracts) Regulations for 2026 will come into effect.
A Reminder of Australia’s Fixed-Term Contract Reforms
Australia’s fixed-term contract reforms took effect on 6th December 2023, introducing restrictions on the use of contracts with predetermined end dates.
The reforms were designed to reduce the ongoing use of rolling fixed-term arrangements where a permanent employment relationship may be more appropriate, while also strengthening job security for employees. Employers must also provide eligible workers with a Fixed Term Contract Information Statement when entering into a new fixed-term contract.
Why Does Scrapping Australian Fixed-Term Contract Exemptions Matter?
The expiry of these exemptions could have a significant impact on organisations that routinely engage employees on fixed-term arrangements linked to:
- Grant-funded projects
- Research programmes with defined completion dates
- Charitable initiatives
- Community-based programmes
- Externally funded medical or healthcare research positions.
It may also affect organisations planning to extend or renew fixed-term contracts beyond November 2026. Organisations that do not comply with the applicable fixed-term contract requirements may face increased employment and compliance risks. As a result, it is sensible to review workforce arrangements and future hiring plans well ahead of the deadline.
Leap29’s Recommendations for Employers
With the exemption period drawing to a close, employers should begin reviewing fixed-term contracts scheduled to commence from November 2026 onwards and identify any existing arrangements that may require renewal or extension after the exemption ends.
It is also worth assessing whether any alternative exceptions under the Fair Work framework may apply, while ensuring recruitment and workforce planning processes remain aligned with future requirements. Where there is uncertainty, seeking legal or professional advice may help minimise potential compliance risks.
Leap29’s Perspective:
“This development highlights the ongoing challenge of balancing workforce flexibility with employee job security. Charities, not-for-profits and research organisations often operate within fixed funding cycles and project-based environments where flexibility is essential. However, the direction of travel within Australian employment law continues to focus on ensuring fixed-term contracts are used appropriately and that employees performing ongoing work have access to greater long-term security.” ~ Simon Duff, Director at Leap29.
