Fixed-term contracts are contracts that are set for a specific period of time between you and the employee.
Fixed-term contracts require correct implementation and management. Failure to do so could see you sitting on a case of unfair labour practices.
This is especially relevant with all the recent changes to Labour Relations Amendment Act.
With regard to it, there are only two legal reasons for a fixed-term contract to be more than three months.
Here they are:
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?
Two reasons your fixed-term contracts can be more than three months
1. You can only hire a fixed-term employee for more than three months if his work is for a very specific period of time.
2. You can hire a fixed term employee if you can present any other justifiable reason as to why you need a fixed-term contract.
Justifiable reasons include:
• Replacing another employee who is temporarily away from work;
• An unexpected increase in workload that will not last more than 12 months;
• You hiring a student or recent graduate in order for him to gain work experience; and
• You wish to hire a fixed-term employee for a specific project that will last for a specific duration; etc.
So there you have it! There are two reasons for a fixed-term contract to be more than three months.
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!