We recommend recording the actual reason why the employment is temporary. Where section 198B of the Labour Relations Act applies, employment for longer than three months, including successive fixed-term contracts, must be for work of limited or definite duration or have another justifiable reason. The written offer or renewal must state that reason.
Section 198B contains exclusions, including:
- Employees earning above the applicable BCEA earnings threshold.
- Employers with fewer than 10 employees, or fewer than 50 employees where the business has operated for less than two years. These small-business exclusions are subject to exceptions where the employer operates more than one business or the business resulted from the division or dissolution of an existing business.
- Fixed-term employment permitted by a statute, sectoral determination or collective agreement.
Possible reasons, depending on the facts, include temporarily replacing an absent employee, a temporary workload increase not expected to last beyond 12 months, a specific limited-duration project, or a student or recent graduate gaining training or work experience to enter a job or profession. Probation alone is not a justification.
Select Yes to include a reason. You may leave the explanation blank to receive writing lines, which must be completed before signing. Select No only if a reason is not required in your circumstances; the reason section will be omitted. Selecting No does not establish an exemption or make a fixed term lawful. If you leave this choice unanswered, writing lines will be included.
