Fixed-term vs permanent risk checker
Answer a few quick questions to see whether a fixed-term contract could be challenged under section 198B of the Labour Relations Act.
Will the employee earn less than R261 748,45 a year?
Has this person already had previous fixed-term contracts for the same job?
Get the right contract
Our fixed-term employment contract records the justifiable reason and end date that s198B requires — or choose a permanent contract if that fits better.
Create a fixed-term contractQuestions people ask
- What does section 198B of the LRA say?
- For employees earning below the BCEA earnings threshold, a fixed-term contract longer than three months is only allowed if the nature of the work is limited in time or there is another justifiable reason. Otherwise the employee is deemed permanent.
- What counts as a justifiable reason?
- Examples include replacing an employee on leave, a temporary increase in work of under 12 months, seasonal work, a specific project with a defined end, or a student or recent graduate gaining work experience.
- Does it apply to high earners?
- No. Section 198B protections apply to employees earning at or below the earnings threshold. Above that, normal unfair dismissal principles still apply, including reasonable expectation of renewal.
General guidance, not legal advice.