ARTICLE · 03 NOVEMBER 2023

The Pitfalls To Avoid During The Implementation Of Fixed-Term Contracts

Consolidated Employers Organisation

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In terms of Section 198B(1) of the Labour Relations Act (LRA), a fixed-term contract is defined as "a contract of employment that terminates on the occurrence of a specified event...

South AfricaEmployment and HR

In terms of Section 198B(1) of the Labour Relations Act (LRA), a fixed-term contract is defined as "a contract of employment that terminates on the occurrence of a specified event, the completion of a specified task or project or which terminates on a fixed date as set out in the contract". These types of contracts can be used in various industries and for several reasons ranging from seasonal work requirements to completion of specific project timelines.

According to Section 198B (3)(a) and (b) of the LRA, an Employer may employ an Employee on a fixed-term contract or successive fixed-term contracts for longer than three (3) months only if –

The nature of the work for which the Employee is employed is of a limited or definite; or

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