A critical analysis of the rights of employees in fixed-term contracts : the right to reasonable expectation

Abstract

The aim of the study was to critically analyse developments and strides made in effecting protection to employees on fixed-term contracts. There has been an increase in the use of non-standard employment relationships, more particularly fixed-term contracts. Although there is an honest need for fixed-term contracts in relation to employers’ operational needs in certain circumstances, however, utilisation of these type of contracts has resulted in abuse by unscrupulous employers to the detriment of employees. Factors, such as a highly competitive global market, has resulted in unscrupulous employers opting for a more flexible employment relationship in an effort to avoid obligations of labour legislation to the disadvantage of employees on fixed-term contracts, such as claims for dismissal and employment security. The Labour Relations Act of 1995, together with the subsequent amendments, was then enacted to provide a solution to this problem and provides that a dismissal includes the non-renewal of a fixed-term contract, either on the same or similar terms, or indefinitely, where the employee had a reasonable expectation of renewal. The legislation does not provide a definition of what constitutes a reasonable expectation thus, creating legal uncertainty with regard to this issue. It is without doubt, that there is currently more protection afforded to employees on fixed-term contracts, especially with the inclusion of the Labour Relations Amendment Act of 2014; however, such protection does not come without consequences. Thus, the consequences of the regulation were examined in this study in order to understand whether or not the purpose of the regulation has been achieved thus far. Recommendations have been made for a more flexible approach towards regulation, taking into consideration, the purpose for the enactment of such employment relationship as same should not be equated with permanent employment and associated rights. A critical analysis of the rights of employees on fixed-term contracts was done by outlining the historical development and regulation thereof.