Fixed Term Employment Contract

Fixed Term Employment Contract South Africa Template

Summary

A business employing a staff member on a temporary basis, but for an agreed, pre-determined period of time, should use a written employment contract to appoint the employee.

Who Should Use a Fixed Term Employment Contract?

If your business employs staff on a temporary. fixed-term basis, then a written contract of temporary employment should be considered.

See also: Temporary Employment Contract – project-based

What Does The Fixed Term Contract Say?

The Fixed-Term Employment Agreement consists of: the employer and employee’s details; commencement of employment and duration; remuneration; pension and medical aid; employee’s duties; working hours; leave; termination.

What Does The Fixed Term Employment Contract Look Like?

We created a seven-page Fixed-Term Employment Contract Template specifically for the South African market. You can easily edit and print it in Microsoft Word format.

Legal Requirements For A Temporary or Fixed Term Contract of Employment:

Employers should note that in terms of the Labour Relations Amendment Act, 2014 on fixed-term employment, as of 01 January 2015 an employee cannot be appointed on a temporary employment basis for longer than 3 months. There are limited exceptions to this rule, where justifiable reasons exist. If the employer sets the duration for longer than 3 months (without justifiable reason) or continuously renews the fixed-term contract (termed as “rolling over” the temporary employment contract) then the appointment may automatically become a permanent one, which may entitle the employee to recourse for unlawful dismissal if the contract of employment is not renewed.

What Do You Need To Do to Use The South African Fixed Term Employment Contract Template?

• Read the fixed term employment contract template sample to ensure that it suits your requirements. Make changes as you may require.
• Add in the relevant details as indicated as blanks in the document. Sign the agreement. Get your temporary employee to sign.
• Note: it is also recommended that you implement Policies and Procedures in your workplace, detailing additional company procedures and policies that may not be covered in your standard contracts of employment.

For more contract of employment templates, view our Employment Contracts Pack.

If you are looking for other examples of employment contracts, then you can find them all here on Agreements Online! Feel free to browse our Employment Documents category for more contract of employment templates, HR forms and sample documents.

An in-depth look at our Fixed term employment agreement:

A fixed-term employment contract is a temporary agreement between an employer and an employee, outlining the terms and conditions of employment for a specific time period and for an intended purpose.

Here are the key elements and benefits of a fixed-term contract:

• Duration: The employee’s employment contract (known as fixed term contracts) specifies a predetermined time period for the employment, typically for the completion of a specific project or temporary basis rather than permanent employment. The employees are thus seen as part time employees of the employer’s business.
• Termination: The contract automatically ends upon completion of the agreed-upon term or fixed term basis without requiring notice from either party. Generally it will be for the duration of a specific project.
• Benefits: Employees may be entitled to benefits such as medical aid, sick leave, annual leave, and pension, depending on the terms of the contract. It is up to the company or business whether they do offer benefits such as medical aid or pension fund to an employee as well as any other contribution payment deemed by the employers.
• Working hours: The contract defines the expected working hours per working day, which the employee is obliged to fulfill. This includes things such as public holiday, annual leave, sick leave and the amount of days sick leave each employee is entitled to, amount of hours per working day, family responsibility leave following circumstances that give rise hereto.
• Notice period: Unlike permanent employment, a fixed-term contract generally does not require a notice period for termination in writing. (These fixed term employment contracts generally has a duration of a minimum of six months appointment)
• Remuneration: The employee’s salary or payment is typically based on the terms outlined in writing in the contract. Generally an employee will be entitled to full pay under fixed term contracts as a general rule. This clause also includes things such as double pay days, for example, a public holiday.
• Justifiable reason: The employer must have advised of a valid reason or justifiable reason for employing someone on a fixed-term basis (also known as a term contract of employment) instead of a permanent one within the workplace.
• Legal protection: Both the employer and the employee are protected by the law, ensuring fair treatment and preventing unfair dismissal or termination. The contracts of employment are drawn up in accordance with the law.
• Flexibility for employers: Fixed-term contracts provide flexibility for employers, allowing them to adjust their workforce based on business needs.
• Clauses: The contract may include specific clauses related to public holidays, part-time employees, and other circumstances advised as relevant to the employment.

In conclusion, a fixed-term employment contract is a temporary agreement that specifies the terms and conditions of employment for a predetermined period and is suitable for many employers and their business model. It provides flexibility for both employers and employees, offers legal protection, and may include various benefits. However, it is essential to adhere to local labor laws and consult with professionals to ensure compliance and fairness in implementing such contracts.

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