Employment and workplace instruments · 02
Fixed-term contract
Employs someone for a defined period or task — lawfully, which is narrower than most employers think.
Employs someone for a defined period or task — lawfully, which is narrower than most employers think.
The justifiable reason for the fixed term, stated on the face of the contract; an objectively ascertainable end date or event; and equal-treatment provisions for employees below the earnings threshold.
Section 198B of the Labour Relations Act. For employees earning below the Minister’s earnings threshold, a fixed term longer than three months is lawful only on one of the listed justifications; without one the employee is deemed to be employed indefinitely, and an expectation of renewal becomes a dismissal at the CCMA. Confirm the current threshold before drafting — it is adjusted annually.
The law it sits under
What governs this instrument.
Section 198B of the Labour Relations Act 66 of 1995 restricts fixed-term contracts for employees earning below the statutory threshold: beyond three months the employer must be able to justify the fixed term on one of the listed grounds, failing which the employee is deemed to be employed indefinitely. Renewing a fixed term repeatedly without that justification creates a permanent employee by operation of law.
Related pages, tools and documents
Where this instrument sits in the wider set, and the engagement that produces it.
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