Chapter 5 of the Basic Conditions of Employment Act, section 37, is treacherous for employers. Notice periods cannot be applied and you will be charged with unfair dismissal. 

MCCI received the following advice: “Limited duration contracts are regulated by law and the termination thereof is strictly only for reasons justified in law and by effluxion of time and the end of the agreed period. In the matter of Buthelezi vs Municipal Demarcation Board, the  Appeal Court found that an employer does not have the right to terminate the limited duration contract before the natural expiry date. 

This approach was followed in the matter of Nkopane and Others v Independent Electoral Commission in which the Court stated as follows: 

If an employment contract is truly a fixed term contract – of the type contemplated in Tiopaizi v Bulawayo Municipality 1923 AD 317 – it is legally incapable of valid premature cancellation for any reason other than material breach. An employee 7 whose fixed-term contract has been terminated for a reason other than breach is not confined to a contractual claim for damages. The dismissal can also be challenged as being unfair and a claim for compensation may be claimed under the provisions of the LRA. (footnote omitted)” 

Business should be wary when deciding to employ a person on a limited duration contract, for work that is only conditional or for overflow work that needs temporary assistance.  Maybe you should consider hiring casual workers rather than using limited duration contracts.  If you wish to end a fixed term contract, you must adhere to the same disciplinary procedures as permanent employees. You must exercise caution and not blindly follow the BCEA.