Limited Term Employment Contract for South Africa

Limited Term Employment Contract Template for South Africa

A comprehensive employment agreement governed by South African law that establishes a fixed-term employment relationship between an employer and employee. The contract complies with the Labour Relations Act, Basic Conditions of Employment Act, and other relevant South African employment legislation. It details the specific duration of employment, terms and conditions, remuneration, benefits, and termination provisions while incorporating necessary protections for both parties. The document includes specific provisions required by South African law for fixed-term contracts, particularly regarding justifiable reasons for the fixed term and protections for employees earning below the earnings threshold.

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What is a Limited Term Employment Contract?

The Limited Term Employment Contract is designed for use in South Africa when establishing temporary or project-based employment relationships with a defined end date. This document is essential for companies hiring employees for specific projects, seasonal work, or other time-bound positions. It must comply with South African labour legislation, particularly the Labour Relations Act's provisions regarding fixed-term contracts, which require justifiable reasons for fixed-term employment and provide specific protections for employees earning below the earnings threshold. The contract includes all statutorily required information such as working conditions, remuneration, leave entitlements, and termination provisions, while also addressing specific requirements of fixed-term employment such as renewal terms and early termination conditions.

What sections should be included in a Limited Term Employment Contract?

1. Parties: Identification of the employer and employee with full legal names and details

2. Background: Context of the employment relationship and reason for fixed-term nature of the contract

3. Definitions: Key terms used throughout the agreement

4. Duration of Employment: Specific start and end dates of the fixed-term contract and any renewal provisions

5. Position and Duties: Job title, role description, reporting lines, and key responsibilities

6. Place of Work: Primary workplace location and any mobility requirements

7. Working Hours: Standard working hours, overtime provisions, and break periods

8. Remuneration: Salary, payment frequency, deductions, and benefits

9. Leave Entitlements: Annual, sick, family responsibility, and other statutory leave provisions

10. Probation Period: Length and terms of probation period if applicable

11. Termination: Notice periods, grounds for termination, and early termination provisions

12. Confidentiality: Protection of company information and trade secrets

13. Company Policies: Adherence to company policies and procedures

14. Signatures: Execution clause and signature blocks for both parties

What sections are optional to include in a Limited Term Employment Contract?

1. Commission Structure: Include when role includes sales or performance-based compensation

2. Restraint of Trade: Include for senior positions or roles with access to sensitive information

3. Intellectual Property: Include for creative, technical, or development roles

4. Remote Work Provisions: Include if employee will work remotely full-time or partially

5. Travel Requirements: Include if position requires regular travel

6. Performance Incentives: Include if role includes bonus or performance-based rewards

7. Training Obligations: Include if specific training requirements or commitments exist

8. Tools and Equipment: Include if employer provides specific tools or equipment

What schedules should be included in a Limited Term Employment Contract?

1. Schedule A - Job Description: Detailed description of role, responsibilities, and performance expectations

2. Schedule B - Remuneration Structure: Detailed breakdown of salary, benefits, and any variable compensation

3. Schedule C - Company Policies: List of applicable company policies the employee must adhere to

4. Schedule D - Specific Targets: Performance targets or KPIs if applicable to the role

5. Appendix 1 - Code of Conduct: Company's code of conduct and ethical standards

6. Appendix 2 - Benefits Summary: Detailed description of all employee benefits and eligibility criteria

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

South Africa

Publisher

Genie AI

Document Type

Employment Contract

Cost

Free to use
Clauses
Relevant Industries

Information Technology

Manufacturing

Construction

Retail

Healthcare

Education

Financial Services

Mining

Agriculture

Tourism and Hospitality

Professional Services

Media and Entertainment

Non-Profit

Government and Public Sector

Relevant Teams

Human Resources

Legal

Finance

Operations

Project Management Office

Research and Development

Sales

Marketing

Information Technology

Administration

Production

Quality Assurance

Relevant Roles

Project Manager

Contract Developer

Seasonal Worker

Temporary Administrator

Interim Executive

Contract Consultant

Fixed-term Lecturer

Project Engineer

Campaign Coordinator

Research Assistant

Acting Department Head

Temporary Site Supervisor

Contract Accountant

Seasonal Sales Representative

Interim HR Manager

Industries
Labour Relations Act 66 of 1995: Primary legislation governing labor relations in South Africa, including specific provisions for fixed-term contracts under Section 198B, which provides protections for employees earning below the earnings threshold and stipulates justifiable reasons for fixed-term employment
Basic Conditions of Employment Act 75 of 1997: Sets out the fundamental conditions of employment including working hours, leave, remuneration, and termination of employment that must be reflected in the contract
Employment Equity Act 55 of 1998: Ensures equal opportunity and fair treatment in employment through the elimination of unfair discrimination and implementation of affirmative action measures
Skills Development Act 97 of 1998: Provides for workplace strategies to improve the skills of the South African workforce, relevant for training provisions in the contract
Protection of Personal Information Act 4 of 2013: Regulates the processing of personal information, affecting how employee data must be handled and stored
Occupational Health and Safety Act 85 of 1993: Provides for the health and safety of persons at work, which must be referenced in employment contracts regarding workplace safety obligations
Unemployment Insurance Act 63 of 2001: Establishes the Unemployment Insurance Fund and affects mandatory deductions that need to be mentioned in the employment contract
Income Tax Act 58 of 1962: Governs taxation of employment income and mandatory deductions that must be reflected in the employment contract
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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