HomeHome SearchSearch MenuMenu Our productsOur products

4 Instances when an employment contract automatically ends... And 3 when it doesn't

by , 14 January 2016
An employment relationship isn't only over when your employee resigns or you dismiss him. There are the different ways a contract can terminate. Just make sure you follow the rules of each type of termination.

There's termination in 'common law' or 'by operation of law'. Now, I know it sounds like a lot of legalese, but you need to know the differences because there are different legal implications for you. If you don't know them, you could land up fighting a case of unfair dismissal!

Find out more below...

***Author recommends***
 
 
You CAN fire that problem employee!

How do you get rid of that bad apple?

You know the one – that employee who's dragging your whole team down. The one everyone is fed up with for having to pick up extra work because he clearly still has no clue how to do his job.

You've spent hours and hours going through the necessary performance management steps. But now comes the tricky part.

How do you fire him?

What reason do you give for firing him?

We'll show you how...
 
***

4 Reasons for employment to end automatically by operation of law

'By operation of law' terminations happen when the law kicks in automatically to end employment. This is through:

1. Death
The contract will automatically be over when your employee dies. You don't have to do anything to end the relationship.
 
2. Sequestration or liquidation
The equivalent of 'death' for the employer. When the entity goes under.
 
3. Expiry date
When a fixed term contract reaches expiry date it automatically ends without you or the worker having to take any other steps. For example, giving notice. This is unless the contract includes options for renewal or permanent employment.

4. Impossibility of performance
Circumstances that make it impossible for you or your employee to meet your obligations to each other. For example, a foreign national's work permit is revoked.

***Advert***
 
Warning: 1 out of 3 dismissals are deemed as 'unfair' by the CCMA!
Here's how to chair a legally compliant disciplinary enquiry in just 5 easy steps

Chairing a disciplinary hearing isn't easy.
 
With all the disciplinary codes and procedures you have to remember...
 
The roles and rules you need to adhere to...
 
The different questions you need to ask...
 
The different types of evidence that can legally be presented...
 
There are dozens of things you need to keep in mind to give each employee a fair hearing.
 
But what if I told you that chairing a hearing that follows the right disciplinary process is as easy as 5 simple steps? Find them here…
 
***

3 Reasons for employment to end under common law

Common law means a body of law not neatly set out in only one piece of legislation. It comes from court decisions from over the years and their interpretation of legislation. It moves and changes with the times, and includes commentary by prominent academics, etc.

The real difference between common law and operation of law is that either you or your employee need to do something to action the termination. Both of you must still follow legal procedures to end the relationship.

You do this for the following 3 reasons:

1. Misconduct. The employee conducts himself in a way against your policies and procedures.

2. Incapacity. The employee no longer has the capacity to meet his obligations.

3. Operational reasons. You can't carry on with the contract for operational reasons. For example, redundancy/retrenchment.

So now you know the difference, don't get caught on the losing end of a CCMA case!

 


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>