ARTICLE · 08 DECEMBER 2016

Is There Still Place For Fixed-Term Contracts In The Construction Industry?

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Can a construction contractor automatically terminate its employees' contracts when skills are no longer required for a construction project?

South AfricaReal Estate and Construction

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Can a construction contractor automatically terminate its employees' contracts when skills are no longer required for a construction project? This question was at the centre of the Labour Court case of National Union of Mineworkers obo Milisa and Others v WBHO Construction (Pty) Ltd.

In this matter, WBHO (the "contractor") employed concrete and general workers on fixed-term contracts in 2012. The employees contended that, on signing their employment contracts, they were told that they would stop working once the construction project was complete. The project was scheduled for completion in July 2013, however, in December 2012 some of these employees were issued with letters terminating their employment contracts on 19 December 2012.

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