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Four situations you'll have to renew a fixed-term employee's contract

by , 08 September 2015
You don't have to extend a fixed-term employee's contract when it expires.

But if an employee has a reasonable expectation of renewal, he can take legal action against you for unfair dismissal.

Here are four situations that can create a reasonable expectation of renewal:

1. Be careful what you imply:
If you assure your fixed-term employee, or even suggest, that he will work for you on a permanent basis, then he'll have a reasonable expectation of renewal.
Also, if the wording of the employment contract implies continued employment, it could count as unfair dismissal if you don't hire him permanently.


Last year, Government implemented over 70 changes to three of SA's most crucial labour Acts. 

Among them were:

When and how to issue employees with a fixed-term contract.
Unfair discrimination and your employees' pay cheque. 
Steps you MUST take before you recruit a non-South African citizen.
Labour brokers and the only time you can use them.
And so many more. 

How sure are you your HR department's current processes aren't a lawsuit waiting to happen?

How certain are you that one small oversight won't end up costing your company R2.7 million in fines? 

How confident are you that you won't land at the CCMA defending a case for following a faulty HR process?

Don't take a chance when you don't have to. 
2. The position continues: 

If the job position continues to exist after the fixed-term contract expires, he could have a reasonable expectation to keep working for you.

3. Previous renewing:

If you have renewed the fixed-term employee's contracts before, especially if you have done so several times before, then he may have an expectation that you'll keep doing this in future. 
So, there were three situations in which a fixed-term employee may tie you up for unfair dismissal. Know them and take action before it happens!

To learn more, click below….

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