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Always remember the expiry date of a fixed-term contract! Otherwise you can sit with a problem on your hands

by , 15 October 2015
Fixed-term contracts are contracts that are set for a specific period of time between you and the employee.

They require correct implementation and management, as failing to do so could lead to unfair labour practices.

This is especially relevant with all the recent changes to Labour Relations Amendment Act.

Having said that, it's important to keep in mind that you don't have to extend a fixed-term contract after it expires, but failing to do so, after which the employee is still working for you, can cause problems.

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If you forget to renew a fixed-term contract and the employee continues to work for you, then she'll be deemed to work for you for an indefinite period of time.

She might even be able to claim permanent employment.

So, first of all, remember the expiration date on a calendar and ensure that you give the fixed-term employee adequate notice.

If you wish to renew the contract, you must state clear and concise reasons as to why the renewal is justifiable – especially if you do so after the employee has been working for you for more than three months.
 
To find out more on fixed-term contracts, subscribe to Labour Law for Managers.

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