HR Tips Q1 2021 - Managing Fixed-Term Contracts – Renewal/Termination/Resignation

Managing Fixed-term Contracts – Renewal / Termination / Resignation

This quarter’s HR Tip provides advice on the process you should follow when a fixed term contract is ending or if the staff member chooses not to accept a contract extension.

What do I do when a fixed term contract is ending?

If you have determined that you no longer need the position, advise your staff member that their employment will end when their fixed term contract ends.

For staff specifically engaged on a ‘specific task or project’ or ‘research-only’ fixed term contract, there are minimum notice periods set out in the Enterprise Agreement.  The notice period ranges from two to five weeks, depending on the staff member’s length of continuous service and their age. With these contract types, if you don’t provide sufficient notice to your staff member, they will be paid in lieu of part or all of the notice period and the cost will be borne by your local area. See clause 2.3.14 of the Enterprise Agreement for the required notice period.

CRAFT (Contract Review & Administration for Fixed Term) is our online system supporting the process to manage existing fixed term employment contracts. CRAFT will prompt you as the fixed term contract nears its end date  and you can use CRAFT to terminate the contract as at the contract end date. By recording through CRAFT no later than two weeks prior to the staff member’s final payday that the contract is to be terminated at the contract end date, you will ensure that their final pay is accurate. Late termination submissions through CRAFT will result in overpayments, which are difficult to recover once a staff member has left the University and could result in additional costs being charged to the School/Branch.

This will be reported as a termination relating to end of temporary employment and the associated position will be inactivated.

What do I do when a fixed term contract needs to be renewed?

If the work is not ending and you have an ongoing need for the position, the Enterprise Agreement requires you to offer your staff member further employment in that position (i.e. instead of someone else) provided they have met the following conditions:

• They were employed in the position through a competitive and merit based selection process, and
• They have performed satisfactorily in the position, that is, you have not been actively managing their unsatisfactory performance.

You can use CRAFT to initiate a contract renewal, and once approved this will in turn generate a further offer of employment to the staff member.

What if the staff member does not want a contract renewal?

If the staff member decides they do not want to accept a contract renewal, they are required to decline the offer of employment that is generated through (CRAFT).  It is not appropriate that they submit an online resignation advice form.

This will be reported as a termination relating to a declined offer, the position will remain active and can be filled in accordance with the University’s recruitment procedures.

When does a staff member use the online resignation advice form?

The online resignation advice form is used when a staff member wants to leave the University prior to the end date of their existing employment contract. Staff covered by the Enterprise Agreement are required to give 2 to 12 weeks’ notice, as set out in clause 6.1.3 of the Enterprise Agreement.

This will be reported as a termination relating to a resignation, the position will remain active and can be filled in accordance with the University’s recruitment procedures.

The online resignation advice form should not be used by a staff member when a fixed term contract is coming to a natural end or when a staff member is declining contract renewal.

When is severance payable?

Clause 6.4 of the Enterprise Agreement sets out the circumstances in which a staff member who has been working under more than one consecutive fixed term contract is entitled to severance pay. The entitlement is linked to ‘specific task or project’ and ‘research only’ work. The applicable amount of severance pay varies from four to eight weeks’ pay, depending on your staff member’s length of continuous service.

No severance is payable where the University offers acceptable alternative employment and the staff member accepts. If the University offers comparable alternative employment and the staff member doesn’t accept, severance won’t be paid. If you have a reasonable expectation that the staff member might be re-employed by the University within 8 weeks of their contract ending, you can defer the severance payment for that period.

Who can I contact if I need help?

Your HR Advisor is here to assist you if have any questions or concerns when you are prompted by CRAFT to review a contract that is due to end or when your staff member resigns. For help with general HR enquiries, the HR Service Centre is available to assist you on 831 31111 or email hrservicecentre@adelaide.edu.au.

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