Posted by: Fanie | 2018/10/22


Good afternoon. I am currently employed by Company A, on a 6 month contract, and as part of a team we are outsourced to perform duties at Company B. Obviously I can not disclose info about the companies... I have some questions, please if you would be so kind as to enlighten me on these: 1. The end date as stipulated on my contract is 31 Oct 2018. At time of writing, none of us have been informed as to what will happen after 31 Oct 2018. Should I assume that come that date, that my employment is automatically terminated or carry on work as per normal until more info is given by Company A? Is a letter of termination of employment required? 2. Company A's contract with Company B also ended on 31 Oct 2018 but was extended by 6 months due to operational and administrative requirements. Do I as an contract worker, can I assume that my contract will / has to be extended for that period as well? 3. Is there any law / rule that dictates how many times a contract like mine can be renewed / extended before being employed permanently by either Co A or Co B? 4. Is there any pitfalls that I should watch out for in this scenario? What rights would I have re UIF claims?

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Our expert says:
Expert ImageLabour lawyer
- 2018/10/23

If you are earning less than R17,200 per month then you fall under the threshold as set by the Department of Labour.  This threshold deems ;you to be a permanent employee of company B if in fact there is no true ending to the work (regardless of the contract).  If in fact there is a specific end to the work that has to be done then one can understand the nature of a contract coming to an end.  if however the work is ongoing then you can challenge the end of that contract.

You do have cover from UIF and you should be permanent.

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