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Termination of Fixed Term Contracts: How does it work

by , 26 February 2015
Both employers and employees can use the fixed term contracts, as long as the agreement is are fair. After all, a fixed-term contract may be necessary ifyou need employees on a project for a specific time period or a position is only available for a time.


But what happens if you need to terminate the contract early?

Read on to find out.

The rules for fixed term contract workers are different


You have to pay attention to the fact that a fixed-term contract may follow diffferent rules depending on the field of activity. For instance, as advocate Estelle Botha explains for labourquide.co.za, in the building industry, fixed term contracts could be terminated at the arrival of a specific event.For instance a plasterer's contract will terminate if that portion of the project is finished.

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In case you want to know whether a fixed term contract may be terminated before the specified date of termination in the contract, according to the law, a contract like this may not be terminated for any other reason than material breach or repudiation of the contract by the employee.  

In essence this means, the employee may resign before the date of termination, or if the employee is found guilty of serious misconduct and dismissed, which will mean the employee was in breach of the contract.

Also, you should know that the fixed-term contract ends at the time stipulated in the contract or at the arrival of a specific event..

However, the employer may not terminate the contract before the time and the commitment have to be honoured unless the parties agree upon it.

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