The use of fixed-term employment contracts has been the subject
of contention for many years. Opponents to their use have argued
that because these contracts terminate automatically after the
period of time for which they have been entered into, they can be
used to avoid liability for unfair dismissal. Added to this is the
argument that it is not unknown for employees to have their
fixed-term contracts renewed on several occasions, which leads to
the situation where these employees are used in the same way as
permanent employees, but often with lesser terms and conditions of
employment.
The legislature has responded to these concerns in two ways. The
first is found in section 186(1)(b) of the Labour
Relations Act, 1995 ("LRA"). This
section provides that if an employee who is employed on a
fixed-term contract has a reasonable expectation that his or her
contract will be renewed on the same or similar terms and the
employer fails to renew it, or offers to renew it on
