Jonathan Goldberg

Temporary employment contracts are common. Often employers have successive temporary employment contracts with their employees, which has the effect that the employee is not considered a permanent employee and, as such, is not afforded all the rights they would be entitled to in terms of legislation.

Employers have been accused of using this to purposefully circumvent their obligations towards their employees.

With these type of temporary contracts, the applicable clause usually states that the contract will come to an end on a specified date, for example, “On August 4, 2011 the contract of employment will end” or “When the construction of 4 Atholl Road is completed, the employment contract will come to an end”.

This type of clause is viewed by the courts as acceptable and legal as the termination is not viewed as a dismissal, but that the contract of employment simply ended and the employee’s rights are not being denied. The employee has some sort of predictable future in front of them and can plan accordingly.

Other types of automatic termination clauses have neither defined a specific date, nor event. This clause might simply state that the employment contract will come to an end when the employee’s services are no longer required or when the employer simply does no longer want the employee.

The Labour Courts find these type of clauses repugnant as they do not allow any form or predictability or security. They are not compliant with the law and the purpose is more often than not an attempt to circumvent the applicable labour legislation. These employees may be then regarded as unfairly dismissed.

Employers should consider the wording of the termination clauses and the purpose for which they are drafted. The courts are stamping out abusive versions.

l Jonathan Goldberg is CEO of Global Business Solutions. For more information, visit www.globalbusiness.co.za