Understanding temporary employment in Australia
Temporary employment covers various arrangements where workers are hired for a limited time. In Australia, temporary workers are protected by Fair Work legislation, with entitlements depending on how they are engaged.
Fixed-term temporary
- Set end date or project
- Pro-rata leave accrual
- Defined working hours
- Notice period applies
Casual temporary
- No set end date
- 25% casual loading
- No guaranteed hours
- No notice required
The Fair Work Act 2009 and relevant Modern Awards set minimum conditions for all temporary workers.
When temporary employment is used
Businesses hire temporary employees for:
- Project work: Specific tasks with defined completion dates
- Leave cover: Replacing staff on parental leave, long service leave, or extended absence
- Workload peaks: Managing busy periods without permanent headcount
- Skills gaps: Accessing specialist skills for limited engagements
- Trial arrangements: Assessing fit before offering permanent roles
Temporary employee entitlements
Entitlements under the National Employment Standards (NES) vary by contract type:
Fixed-term temporary entitlements
Fixed-term contract limitations
Recent Fair Work changes limit the use of fixed-term contracts:
- Maximum duration: 2 years for the same or substantially similar role
- Renewal limit: Maximum of 2 consecutive contracts
- Exceptions: Specialist skills, training arrangements, peak demand, government funding
- Written notice: Employers must provide a Fixed Term Contract Information Statement
Australian compliance tip
Using repeated fixed-term contracts to avoid permanent employment obligations can expose businesses to claims. If the work is genuinely ongoing, the employee may be entitled to permanent status. The Fair Work Commission can assess whether arrangements are genuine.
Benefits of temporary employment
For employers
- Flexibility: Adjust workforce for project needs
- Cost control: Defined employment period
- Specialist access: Bring in specific skills
- Trial period: Assess before permanent offer
For employees
- Experience: Varied roles and industries
- Networking: Build professional connections
- Flexibility: Choose engagements to suit
- Pathway: May convert to permanent
Managing temporary employees
Effective management of temporary workers includes:
- Clear contracts: Specify duration, duties, and end conditions
- Proper onboarding: Integrate temps into teams quickly
- Award compliance: Apply correct Modern Award rates
- Time tracking: Record hours using time and attendance systems
- Leave management: Track accruals for fixed-term staff via leave management software
- End-of-contract: Pay out unused leave and provide required notice
Common mistakes with temporary employment
Rolling fixed-term contracts
Repeatedly renewing contracts beyond the 2-year/2-contract limit without genuine reason.
Missing leave accruals
Not tracking or paying leave entitlements for fixed-term temporary employees.
No information statement
Failing to provide the Fixed Term Contract Information Statement as required.
Unclear end conditions
Vague contract terms about when and how the engagement ends.
Key takeaways
Temporary employment in Australia covers workers hired for limited periods, whether as casual or fixed-term employees. Recent Fair Work changes have introduced limits on fixed-term contracts to prevent misuse of temporary arrangements.
Employers must provide clear contracts, track entitlements correctly, and comply with new fixed-term limitations. Using workforce management software helps manage temporary staff alongside permanent employees while supporting compliance with Fair Work requirements.
