A genuine contract for a specified period may terminate by the passing of time at the end of the period rather than by termination at the initiative of the employer.[1]
In order to be a contract for a specified period of time the dates of commencement and completion of the contract must be unambiguous.[2]
If the contract gives either party an unqualified right to terminate the contract on notice, or with payment in lieu of notice, it will not be a contract for a specified time.[3]
A contract giving either party the right to terminate for a breach of the contract may still be a contract for a specified period of time.[4]
A contract may still be a contract for a specified period of time if it allows for review and extension by consent after a specified period of time.[5]
Where there has been a series of fixed-term contracts and renewal is a mere formality the Fair Work Commission may look beyond the terms of the contract to the reality of the employment relationship.[6]
The mere fact that an employer has decided not to offer a new contract of employment at the end of a time-limited contract which represents a genuine agreement by the parties that the employment relationship should come to an end not later than a specified date will not by itself constitute a termination at the initiative of the employer.[7]
However where the employment contract has a defined contractual term but does not exhibit an agreement that the employment relationship will come to an end when the term expires (as in the D’Lima[8] situation of a series of short-term standard-form contracts), a decision by the employer not to offer a further contract may become a relevant consideration as to whether there has been a termination at the initiative of the employer.[9]