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Labour Relations Act, 1995 (Act No. 66 of 1995)


Motor Industry Bargaining Council  (MIBCO)

Main Collective Agreement

Division A : Provisions Applicable to all Establishments in the Industry

Clause 3 : Particulars of Employment and Remuneration

3.6 Fixed Term Contract



An employer and an employee may enter into a written fixed term contract; subject to the following conditions:


(1) the parties shall clearly specify the duration of the contract;


(2) the contract shall specify the conditions under which it will be terminated, and shall include provisions allowing for the early termination thereof by Agreement and/or whether it may be terminated owing to a fundamental breach thereof;


(3) unless the contract is time-based in accordance with subclause (i) above the contract may be terminated upon the completion of a clearly defined task or project, in which case the onus shall rest upon the employer to prove that the task or project has been completed in every respect;


(4) during the entire term of the contract the employee shall be deemed to be an ordinary employee of the employer, and shall enjoy all social security and other benefits available to employees on indefinite period contracts in the employ of the same employer;


(5) the fact that an employee has entered into a fixed term contract shall not deprive him/her of any rights entrenched either in law or in accordance with the provisions of this Agreement, including the payment of remuneration which is not less than the minimum prescribed wages for the class of employee concerned; and


(6) no employee shall be placed on a fixed term contract as a substitute for a probationary period.