S’boko and Gatedi have been working for Matswaiing-a-matsho (Pty) Ltd
(MM) on six months contracts which were renewed twice for further six
months. They are earning R10 000.00 a month each. They are now left
with a month to complete tenures of their contracts with MM. S’boko is
worried that in the next two months they will be without jobs, but Gatedi
does not seem to be worried. Instead, Gatedi tells S’boko that she must
stop being worried because they became permanent employees of MM
by operation of law.
ANSWER THE FOLLOWING QUESTION WITH RELEVANT
AUTHORITY:
Discuss the correctness of Gatedi’s view of their position with MM. Include
in your discussion the possible defences which MM may raise to rebut
Gatedi’s view.
Forms of termination
(a) Completion of the contract
This method is only applicable to a fixed-term contract of employment,
concluded for a specific period or until completion of a specific project.
The contract ends once the period agreed to has expired or the project
which the employee had taken into service has been completed. This type
of employment contract may be renewed expressly or tacitly.
Section 186(1)(b) of the LRA expressly aims to address the circumvention
of protection
against unfair dismissal through the use of fixed-term contracts. This
section (which is discussed in detail in chapter five below) provides that
where a fixed-term employee has a reasonable expectation of a renewal
of their fixed-term contract, or even of permanent employment, and the
contract is not renewed, or permanent employment is not offered, this is
deemed to be a ’dismissal*. This opens the door to an enquiry into the
fairness of the employer’s conduct
• Section 198B of the LRA. which only applies to fixed-term employees
earning below the BCEA