Lesson 1, Topic 1
In Progress

4.2. The Fixed Term Contract of Employment

ryanrori January 11, 2021

[responsivevoice_button rate=”0.9″ voice=”UK English Female” buttontext=”Listen to Post”]

The fixed term contract of employment is in fact almost identical to the contract of permanent employment.

The only real difference is that the fixed term contract of employment will stipulate a starting date and an ending date.

The contract will state that “Upon the attainment of (state ending date) this contract of employment will terminate, and the employment relationship between the employee and the employer will cease.

The employee will no longer be employed by the employer as from (state ending date.)

Apart from this clause, the contract will be the same as the permanent contract of employment, except that in the fixed term contract the employer will stipulate where the benefits such as pension, medical aid, provident fund, any group life assurance facility, etc is applicable or not applicable to the fixed term contract.

A further important paragraph to be included would be as follows:

“This contract of employment may be terminated by either party to the contract providing to the other party to the contract, 1 month written notice of intention to terminate, for any reason recognised in law as being sufficient. The employer may terminate this contract of employment at any time during the duration of the contract, for reasons of the incapacity or misconduct of the employee, or the operational requirements of the employer.”

Should this contract be terminated for any of the above reasons, the employee agrees that he shall have no claim against the employer for any outstanding benefit, including remuneration, to the end of the contract.”

Annual leave and sick leave

An employee on fixed term contract is entitled to paid annual leave and paid sick leave (from the first day of employment ) , as well as family responsibility leave (only after 4 months employment), in terms of the Basic Conditions of Employment Act.

Should this contract be terminated for any of the above reasons, the employee agrees that he shall have no claim against the employer for any outstanding benefit, including remuneration, to the end of the contract.”

The project contract of employment.

Here again, the project contract of employment is also in fact a fixed term or temporary contract of employment.

The difference is that instead of stipulating a starting date and an ending date (a contract which runs according to time,) the project contract of employment is a contract where an employee is employed by the employer to complete a certain project.

In other words, the date of completion of the project is unknown – it may be six months, it may be 12 months or even longer.

Thus, the contract will stipulate wording something like:

“ the employment shall commence on (stipulate starting date) and shall end upon completion of the project.”

A further important paragraph to be included would be as follows:

“This contract of employment may be terminated by either party to the contract providing to the other party to the contract 1 month written notice of intention to terminate, for any reason recognised in law as being sufficient. The employer may terminate this contract of employment at any time during the duration of the contract, for reasons of the incapacity or misconduct of the employee, or the operational requirements of the employer. Should  this contract be terminated for any of the above reasons, the employee agrees that he shall have no claim against the employer for any outstanding benefit, including remuneration, to the end of the contract.”