A recent court case before the Labour Court revisited whether an employer may end a fixed-term contract (FTC) before its expiry by giving contractual notice.
According to experts in Cliffe Dekker Hofmeyr’s (CDH) Employment Law Practice, many employers assume that simple notice is sufficient, regardless of the underlying reason for dismissal. “This judgment clarifies the distinction between contractual lawfulness and fairness under the Labour Relations Act and offers practical guidance for those engaging employees on FTCs”, says CDH.
In this case, the court was asked to determine the lawfulness (distinct from fairness) of terminating a FTC on one month’s notice – the stipulated notice period in the employee's contract. The employee alleged that the early termination was unlawful and sued for breach of contract.
“The court found in favour of the employer – confirming the general rule that an FTC may only be ended before its expiry date if there is repudiation/material breach or the contract expressly permits early termination. In this case, the contract stipulated 1 months’ notice for early termination,” says CDH.
Experts from CDH are available to discuss:
- Which instances allow for the early termination of a FTC?
- What is the distinction between lawfulness and fairness in this case, and why does it matter?
- How can employers and contractors ensure their contracts are both lawful and fair?
ENDS
About Cliffe Dekker Hofmeyr
With a track record spanning over 164 years, Cliffe Dekker Hofmeyr (CDH) is one of the largest law firms in South Africa. CDH has over 350 lawyers nationwide to provide effective legal service for clients looking to do business in key jurisdictions across Africa. CDH focuses on a number of key sectors which are active and thriving in Africa, including mining and minerals, telecommunications, energy, oil and gas, banking and finance, projects and infrastructure, hospitality and leisure and dispute resolution.
