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The LRAA has affected fixed-term contracts! You need to know what it says

by , 30 August 2015
A fixed-term contract is a contract that hires an employee for a very specific period of time or for a specific project.

Due to the Labour Relations Amendment Act, there have been some changes to fixed-term contracts. These apply to employees who earn less than the current minimum earnings threshold of R205 433.33.

Here are three recent changes you must know if your fixed-term employees earn less than the minimum threshold:

1. You need to understand that a 'temporary service' means an employee who works for you for less than three months. He will either work for a temporarily absent employee or he will work as a temporary service if a bargaining council, collective agreement or notice form the Minister determines so.

Make sure your policies, forms and contracts are legally correct every time

Can you answer these questions?

Does your chairman cover all the necessary points when chairing a disciplinary hearing?
Are your employment contracts up-to-date and do they include the minimum law requirements?
Do you have all the relevant documentation to win your case if a dispute arises with an employee?
Have you given all your past employees a certificate of service?

2. The employee will be considered permanent if he works for you for more than three months. If you don't comply with the LRA procedures, he will then be your employee for an indefinite period. 

Note there's no real indication as to whether or not these three months need to be consecutive. And seeing that no ruling has been made on this interpretation, you should just be aware of it.

3. If you decide to terminate a fixed-term contract early or without a valid reason, it's considered a dismissal. 

So here you have it! There are three recent changes to fixed-term contracts through the Labour Relations Amendment Act. 

To learn more, click below…

The LRA amendment came into effect on 1 January 2015. Do you know what the key changes are?
You might be aware the Labour Relations Act amendment came into effect, but the real question is do you know how these changes affect you and your company? 
That's why we have the Labour Law for Managers Loose Leaf Service which provides you with updates every time a new labour law comes into effect. We keep you updated so you can comply and avoid penalties that could cripple your business!

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