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4 Changes to fixed-term contracts you have to know

by , 03 May 2016
If you deal with fixed-term contracts, then you have to know how they work. And the chances are that you probably do, right?

Well, with the Labour Relations Amendment Act (LRAA), things have changed a little regarding fixed-term contracts. And if you fail to keep up-to-date with these changes, you'll be held liable for unfair labour practices!

So to help you stay on top of fixed-term contracts, here are the 4 changes you have to know...


Be warned! The Labour Relations Amendment Act changes the way you treat fixed-term and temporary employees!

Click here to learn more...

If you decide to terminate a fixed-term contract early or without a valid reason, it's considered a dismissal.
You need to understand that a 'temporary service' refers to an employee who works for you for less than three months.
She will either work for a temporarily absent employee or as a temporary service if a bargaining council, collective agreement or notice from the Minister says so.
A fixed-term employee will be considered permanent if she works for you for more than three months. And if you don't comply with the Labour Relations Act (LRA) procedures, she will then be an employee for an indefinite period.


If a fixed-term employee is deemed an employee, she can't be treated less favourably than another permanent employee doing the same, or a similar, job.

CAUTION: It's not really clear if these 3 months need to be consecutive. And seeing that there hasn't been any ruling or interpretation on this matter yet, it's advised that you stay aware of its possible implications.

IMPORTANT NOTE: These changes apply to fixed-term employees who earn less than the minimum threshold (R205 433.33).
*Those were the 4 important changes the LRAA has made regarding how fixed-term contracts work.

To learn more on fixed-term contracts, page over to Chapter F 04 in your Labour Law for Managers handbook, or click here to order your copy today.

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