What does the Labour law say about fixed-term contracts?
The LRA defines a fixed-term contract that terminates on the occurrence of a specified event; the completion of a specified task or project; or a fixed date other than an employee’s normal or agreed retirement age; and. Importantly, the contract must specify or indicate a justifiable reason for fixing the term.
Are fixed term employment contracts legal?
Fixed-term contract employee rights are largely the same as those of permanent staff. However, fixed-term employees are sometimes exempt from unfair dismissal laws, provided the right type of contract template is used.
What are the implications of a fixed-term contract?
Unfair dismissal and redundancy The expiry of a fixed term contract still counts in law as a dismissal. Therefore an employer can still be required to give a legally fair reason for their dismissal to an employee on a FTC, even if that FTC contains a specified end date.
When can fixed-term contracts be used?
This means many workers are employed on contracts or in casual employment arrangements. In schools, many teachers are appointed on fixed-term contracts. However, there are restrictions on when fixed-term contracts can be used. Fixed-term contracts can only be used where there is an “identifiable short-term need”.
Do fixed term contracts have a probationary period?
The length of your fixed-term contract probation period will depend on your employer and the length of your contract (e.g. If you only have a three month contract, your probation period won’t last three months).
What is Labour Relations Act No 66 of 1995?
This Act regulates the organisational rights of trade unions and promotes and facilitates collective bargaining at the workplace and at sectoral level. It also deals with strikes and lockouts, workplace forums and alternative dispute resolution.
Can you have a probationary period in a fixed-term contract?
Does a fixed-term contract need an end date?
overview of the law A fixed-term contract will usually expire automatically, at the end of the term or project, without the need for notice (although some fixed-term contracts also provide for early termination on notice before the expiry of the fixed term).
What is the advantage of fixed contract?
Advantages of fixed price contracts. This sort of contract provides a predictable scenario for the seller and buyer, as well as stability for both sides over the contract’s duration. Buyers may be concerned that the price of a service or commodity will rise unexpectedly, disrupting their business objectives.
Can a fixed-term contract be ended early?
Although it may seem confusing an employee can still be a fixed-term employee if there is a provision for notice in the contract. Therefore early termination of a fixed-term contract will be a breach of contract, unless the contract contains an early termination clause allowing either party to give notice.
Does a fixed-term contract have to have an end date?
What is FTC 6month?
A fixed-term contract (often referred to as FTC) is an employment contract that has a defined end date. Terms can vary from company to company, but employees on a FTC, will usually be paid on a PAYE salary basis and enjoy the full permanent benefits package offered by the employer.
