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Fixed-Term Employment Contract

R449

Create a legally structured fixed-term employment contract that records the employee’s role, start date, end date or terminating event, lawful reason for the fixed term, salary, working hours, benefits, probation, renewal terms, and termination conditions.

A Fixed-Term Employment Contract is used where an employer appoints an employee for a limited period, a specific project, a defined task, a temporary replacement, seasonal work, or another objectively justifiable reason. The contract should clearly identify the start date, end date or terminating event, reason for the fixed term, remuneration, working hours, leave, benefits, reporting line, duties, confidentiality obligations, renewal terms, and termination process.

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South African legal context (2026 checklist)

Fixed-term contracts must be used carefully. Under South African labour law, employees earning below the applicable BCEA earnings threshold receive additional protection under section 198B of the Labour Relations Act. A fixed-term contract longer than three months generally requires a justifiable reason, unless a statutory exclusion applies. Repeated renewals may create a reasonable expectation of renewal or indefinite employment. The contract should therefore record the genuine temporary reason for the fixed term and should avoid using rolling fixed-term contracts for permanent operational needs.

  • Labour Relations Act 66 of 1995
  • Section 186(1)(b): Reasonable expectation of renewal or indefinite employment
  • Section 188: Fair reason and fair procedure where dismissal is alleged
  • Section 198B: Fixed-term contracts with employees earning below the prescribed earnings threshold
  • Section 198D: Disputes about non-standard employment
  • Basic Conditions of Employment Act 75 of 1997
  • Section 29: Written particulars of employment
  • Section 32: Payment of remuneration
  • Section 33: Information about remuneration
  • Section 34: Deductions and other acts concerning remuneration
  • Section 37: Notice of termination
  • Section 40: Payments on termination
  • Section 41: Severance pay, where applicable
  • Government Notice 7384 of 2026: BCEA Earnings Threshold
  • Employment Equity Act 55 of 1998
  • National Minimum Wage Act 9 of 2018
  • Protection of Personal Information Act 4 of 2013
  • Code of Good Practice: Dismissal, 2025
  • SA Rugby Players Association and Others v SA Rugby (Pty) Ltd and Others [2008] ZALAC 3
  • University of Pretoria v CCMA and Others [2011] ZALAC 25

Use this as a starting point only. Verify current gazetted amendments, tribunal rules, and SARS / DOL circulars that may apply to your matter.

Typical questions we'll walk you through

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What is the employer’s full legal name and address?
What is the employer’s full legal name and address?
What is the employee’s full name, ID/passport number, and contact details?
What is the employee’s full name, ID/passport number, and contact details?
What position will the employee hold?
What position will the employee hold?
What is the employee’s job description or main duties?
What is the employee’s job description or main duties?
What is the start date of employment?
What is the start date of employment?
What is the fixed end date, project completion date, or terminating event?
What is the fixed end date, project completion date, or terminating event?
What is the lawful reason for using a fixed-term contract?
What is the lawful reason for using a fixed-term contract?
Is the employee replacing another employee who is temporarily absent?
Is the employee replacing another employee who is temporarily absent?
Is the employee appointed for a specific project, seasonal work, temporary workload, training, funding period, or limited operational need?
Is the employee appointed for a specific project, seasonal work, temporary workload, training, funding period, or limited operational need?
What is the employee’s salary or wage?
What is the employee’s salary or wage?
Will the employee earn above or below the current BCEA earnings threshold?
Will the employee earn above or below the current BCEA earnings threshold?
What are the ordinary working hours and working days?
What are the ordinary working hours and working days?
Will overtime, Sunday work, public holiday work, standby, or shift work apply?
Will overtime, Sunday work, public holiday work, standby, or shift work apply?
What leave benefits will apply?
What leave benefits will apply?
Will the employee receive benefits such as pension, medical aid, bonus, commission, allowance, or travel reimbursement?
Will the employee receive benefits such as pension, medical aid, bonus, commission, allowance, or travel reimbursement?
Will the appointment be subject to probation?
Will the appointment be subject to probation?
Who will the employee report to?
Who will the employee report to?
Where will the employee be based?
Where will the employee be based?
Will the employee work remotely, onsite, or at multiple locations?
Will the employee work remotely, onsite, or at multiple locations?
Can the contract be renewed, and must renewal be in writing?
Can the contract be renewed, and must renewal be in writing?
Should the contract state that there is no reasonable expectation of renewal or permanent employment unless confirmed in writing?
Should the contract state that there is no reasonable expectation of renewal or permanent employment unless confirmed in writing?
What notice period will apply before the end date, if any?
What notice period will apply before the end date, if any?
Can either party terminate before the fixed end date?
Can either party terminate before the fixed end date?
What happens if the project ends earlier or funding is withdrawn?
What happens if the project ends earlier or funding is withdrawn?
Must the employee sign confidentiality, restraint, intellectual property, POPIA, or workplace policy undertakings?
Must the employee sign confidentiality, restraint, intellectual property, POPIA, or workplace policy undertakings?
What company property, equipment, data, or documents must be returned on termination?
What company property, equipment, data, or documents must be returned on termination?
Who is authorised to sign the contract on behalf of the employer?
Who is authorised to sign the contract on behalf of the employer?

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