Employers use limited duration contracts (LDCs) to create certainty and limit legal risk in respect of staffing solutions. Appointing an employee for a fixed period or defined project allows an employer to plan for the employee’s exit in advance. This is because the contract will expire on a certain date or upon reaching a defined milestone, without the limitations of only being able to terminate the contract for valid reasons, and after following a fair procedure. But what happens when the work is not completed by the end date, the employee delivers such good work that the employer wishes to retain the employee past this period, or the employee is not keen on the contract terminating? The Labour Appeal Court (LAC) in South Africa recently confirmed some of the principles inherent in fixed-term employment contracts.

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