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Section 198B Check

Fixed-Term Employment Contract Template (South Africa)

A fixed-term employment contract appoints an employee for a set period or until a defined project ends. In South Africa it is one of the easiest contracts to get wrong: if the appointment runs longer than three months without a justifiable reason, section 198B of the Labour Relations Act deems the employee to be employed indefinitely.

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This generator asks you the questions a labour lawyer would, records the justifiable reason in the contract itself, and calculates pro-rata annual and sick leave from the actual term you enter.

What the document includes

  • Justifiable reason recorded in the contract
  • Automatic termination date and renewal terms
  • Equal treatment clause for comparable employees

Who needs this document?

  • Employers filling a role for a defined project, season or peak period
  • Businesses covering maternity, sabbatical or long-term sick leave
  • Start-ups hiring for funded contracts with a known end date
  • Anyone replacing a verbal fixed-term arrangement with written particulars

The South African law behind it

  • Basic Conditions of Employment Act 75 of 1997 — section 29 written particulars, working time, leave and notice
  • Labour Relations Act 66 of 1995 — section 198B fixed-term protections and the earnings threshold
  • National Minimum Wage Act 9 of 2018 — the contract checks the rate you enter
  • Employment Equity Act 55 of 1998 — equal treatment for comparable employees

How it works

  1. 01. Choose

    Pick this document and open the guided generator.

  2. 02. Personalise

    Answer plain-English questions and watch the draft build.

  3. 03. Use

    Pay, download the PDF and send secure signing links to each party.

Frequently asked questions

How long can a fixed-term contract run in South Africa?

There is no absolute limit, but for employees earning below the BCEA earnings threshold a fixed-term appointment longer than three months must be supported by a justifiable reason under section 198B, otherwise the employee is treated as permanent.

How much annual leave does a fixed-term employee get?

The BCEA default is one day of paid annual leave for every 17 days worked. The generator calculates this from your start and end dates, and lets you override it with a more generous figure.

Does the contract end automatically on the end date?

Yes — a properly drafted fixed-term contract terminates by effluxion of time on the end date, without notice or a dismissal, provided no reasonable expectation of renewal has been created.

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LekkerContracts provides automated document drafting, not legal advice. Read the legal disclaimer.