The fixed term contract vs probation.

FIXED TERM CONTRACTS (PART 1)

Fixed-Term Contracts vs. Probation

General

The purpose of a fixed-term contract is to provide an opportunity to the employer to employ a person to do a specific position within a specific time period in return for remuneration, leave, sick leave etc.

The fixed-term contract is widely used by employers to execute projects which has a short lifespan, for instance a company employs a person to do the back log on their filing. The manager decides that the project should not take longer than a month and therefore a fixed-term contract for the duration of one month is offered. This practice is acceptable by law.

Fixed term contracts as an assessment tool

Some employers use the fixed-term contract to ascertain whether or not a person is suitable for a position. If the person is then found not to be suitable for the position, the employer will then either terminate the contract immediately before the contract period has expired (and pay out the remainder of the contract) or let the contractor work for the remainder of the period.(and put up with sub standard work). To terminate a fixed contract prematurely you still need to follow procedures and have a good reason.

There is  a better way  make use of the probation clause. By making sure that the probation clause is included in the letter of appointment you are ensuring that the termination of service on behavioural or performance grounds is just a matter of following the right procedures and making sound I>R Decisions

The fixed-term contract is not designed to act as a method to determine whether or not a person is suitable for a position. The Indefinite Period contract (permanent employment) is designed to do just that. The employer may include a section namely “the probation period” in the Indefinite Period contract. This will allow the employer to make use of the process as set out in Schedule 8 to determine whether or not a person is suitable for a position. The Code of Good Practice, schedule 8, Item 9 of the Labour Relations Act is very clear on the process and it is advisable for employers to follow this process when dealing with non performance.

Next week we will have a look at the newly proposed Amendment Bills with regards to Fixed-term contracts.

If you have any questions on the above-mentioned information you may contact us at the contact information as supplied below.

NJ Consult

Labour & HR Consulting

Cell: 082 3791185

Tel: 021-9754385

Published: 20-April-2011

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