Document ID: chunk:federal_register_of_legislation:C2024C00351:section:32
Version: federal_register_of_legislation:C2024C00351
Segment Type: section
Provision Reference: s 32
Character Range: 26827–29049

32  Continuation contracts and related continuation contracts

Continuation contracts
 (1) A services contract (the later contract) is a continuation contract in relation to a pre‑reform commencement contract if:
 (a) the parties to the later contract are the same as the parties to the pre‑reform commencement contract; and
 (b) one or more of the following subparagraphs is satisfied in relation to the later contract:
 (i) the later contract is entered into pursuant to an option or similar right contained in the pre‑reform commencement contract, or contained in another contract that is a continuation contract in relation to the pre‑reform commencement contract;
 (ii) the contract period of the later contract immediately follows the contract period of the pre‑reform commencement contract;
 (iii) the contract period of the later contract immediately follows the contract period of another contract that is a continuation contract in relation to the pre‑reform commencement contract; and
 (c) the later contract relates to the performance of the same kind of work as the pre‑reform commencement contract.
Note 1: See also subsection 35(7), under which a contract may be taken to be a continuation contract.
Note 2: For how this section applies in a transfer of business situation, see section 36.
 (2) For the purposes of subparagraphs (1)(b)(ii) and (iii), the contract period of a services contract is taken to immediately follow the contract period of another services contract even if those periods are interrupted by an interval, but only if that interval:
 (a) is consistent with a regular pattern of contracting between the parties to the contracts; or
 (b) is covered by regulations made for the purposes of this paragraph.

Related continuation contracts
 (3) A services contract is a related continuation contract in relation to another services contract if:
 (a) the following subparagraphs are satisfied:
 (i) the other services contract is a pre‑reform commencement contract;
 (ii) the first‑mentioned services contract is a continuation contract in relation to the other contract; or
 (b) the 2 services contracts are continuation contracts in relation to the same pre‑reform commencement contract.