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Fixed-Term Contract Dispute

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0% found this document useful (0 votes)
38 views4 pages

Fixed-Term Contract Dispute

Uploaded by

lihlegoloza20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1.

lIntroduction
Mr Bean was employed as a Sales Consultant at the Umvuzo Sales Company. He was employed on
a fixed term contract with renewal expectations subjected to performance with other two candidates
which their period duration starts on 01 March 2022 to 28 February 2023.

On the beginning of May 2022, Mr Bean saw three consultants’ contract being renewed which raised
expectation for him that his contract would be renewed when such time arrived. Towards the end of
November, the supervisor complained to her superiors about Mr Bean not meeting the expected
performance standards of the organisation, of which Mr Bean was unaware about the unsatisfactory
of his superiors regarding his performance and no one has informed him.

The supervisor informed the Sales General Manager that Mr Beans’ contract will not be renewed, and
they will be no need to get him trained. In the meantime, the Chief Executive Officer of the company
continued sending Mr Bean the 2023 planning and even informed Mr Bean to submit his 2023-year
plans and schedules like other employees normally does towards the end of each year.

That raised his high hopes. When the time came for the renewal of Mr Beans’ contract, he was
informed on the same day his contract ends, that it was his last day at work and reminded of the end
date of his contract. His position was already being advertised for other candidates to apply. Although
the two consultants he was employed with their contracts were renewed.

Mr Bean viewed the process as unfair and took the matter to the CCMA for arbitration. He claimed to
be unfairly dismissed from his position and he never received any communication or emails informing
him of his ending contract, instead he has emails about the 2023 planning that he was instructed to
comply with and submit.

2. He was on a fixed-term contract.


 A fixed-term contract is a contract in which an enterprise hires an employee for a specific period.
 In most cases it is for a year but can be renewed after the term expired depending on the
requirement.
 In a fixed term contract, the employee is part of a payroll of the organisation but excluded on some
benefits of the organisation.
 Based on Mr Beans case study it stated that it was a fixed contract with expectation based on his
performance standard.
 And, on Mr Beans Contract it states that the duration starts on the 1 st of March 2022 up to 28th
February 2023.

3.
 An employer may require a newly hired employee to serve a period of probation before the
appointment of the employee is confirmed.
On Mr Beans case he was not offered the probation period of at least a month before employing
him, so that they can be able to evaluate Mr Bean’s performance to see if he is competent enough
and if he will need a training to improve his performance standard.
 After Probation, an employee should not be dismissed for unsatisfactory performance unless the
employer has given the employee appropriate evaluation, instruction, training, guidance, or
counselling and after a reasonable period for improvement, the employee continues to perform
unsatisfactory.
According to Mr Beans case the supervisor complaint that Mr Bean was not meeting the targets,
which are regarded as the expected standards of performance of the organisation. But they did not
provide any training or instructions for him to improve, let alone informing him about his poor work
performance.
 The procedure leading to dismissal should include an investigation to establish the reasons for the
unsatisfactory performance and the employer should consider other way.
They should had investigated the matter of poor performance, before dismissing Mr Bean and they
should have given Mr Bean a chance to improve his performance.

4. No, he was not dismissed unfairly.


 Mr Bean’s employment contract had a start and end date.
 The was no need of informing Mr Bean, because it is specified clearly on the contract that the end
date was 28 February 2023
 He was dismissed on the same day of his end date of employment contract.
 According to the law, to be able to lodge a complaint Mr Bean should at list work for 2 years in the
organisation.
 The employer is not forced by the law to give the employee a notice when the fixed term contract is
not going to be renewed.

5.
 The employer should investigate to determine whether there are grounds for dismissal.
 the employer should notify the employee of allegations using a form and language that the
employee can reasonably understand.
 The employee should be allowed the opportunity to state a case in response to the allegations.
 The employee should be entitled to a reasonable time to prepare the response and to the
assistance of a trade union representative or fellow employee.
 After the enquiry, the employer should communicate the decision taken, and preferably furnish the
employee with written notification of the decision.
 If the employee is dismissed, the employee should be given the reason for dismissal and reminded
of any rights to refer the matter to a council with jurisdiction or to the CCMA or to any dispute
resolution procedures established in terms of a collective agreement.
 If dismissal is due to unfair procedure, remuneration must be continued from date of dismissal until
the date of the arbitration.
6.
 The employers should have a disciplinary code that establish the standard of conduct required of
their employees.
 The employer should regard the purpose of discipline as a means for employees to know and
understand what standards are required of them.
 Formal procedures do not have to be invoked every time a rule is broken, or a standard is not met.
 It is not appropriate to dismiss an employee for a first offence, except if the misconduct is serious.
 When deciding whether to impose the penalty of dismissal the employer should in addition to gravity
of the misconduct consider the factors such as the employee’s circumstances.
 The employer should apply the penalty of dismissal consistently with the way in which it has been
applied to the same and other employees in the past and consistently as between two or more
employees who participate in the misconduct under consideration.
 According to the case study the is nothing that states that Mr Bean had misconduct that he has
done.

7. Section 186(1)(b) of the Labour Relations Act states that an employee employed in terms of a fixed-
term contract of employment reasonably expected the employer:
i) To renew a fixed-term contract of employment on the same or similar terms but the employer
offered to renew it on less favourable terms or did not renew it; or
ii) To retain the employee in employment on an indefinite basis, but otherwise on the same or
similar terms as the fixed-term contract, but the employer offered to retain the employee on
less favourable terms or did not offer to retain the employee.

7.1
 On section 186(1) (b) An employee employed on terms of a fixed-term contract of employment
reasonably expected the employer to renew a fixed-term contract of employment on the same or
similar terms. In Mr Bean case he was appointed with the two candidates on the same day on the
same or similar terms on a fixed term contract with expectation for renewal subject to performance
and their duration was the same.
 At the beginning of May Mr Bean saw the three consultants that were doing the same job as him
their contracts being renewed which raised expectation for him that his contract would be renewed
someday.
 The CEO of the company keeps raising hopes on Mr Bean by continuing sending the 2023 planning
and even asked Mr Bean to submit his 2023-year work plans and schedules like other employees
does towards the end of each year, so that raised high hopes for Mr Bean that his contract will be
renewed.
 Although the CEO new that he will not renew Mr Beans’ contract, but he keeps giving him false
hopes instead of informing him about his unsatisfactory of Mr Bean’s work performance.
 Mr Bean was informed on the same day of his contract end date that its his last day of work and
reminded of the end date of his contract. While other candidates he was employed with their
contracts were renewed.

8.

 Mr Bean saw his dismissal unfairly were as it wasn’t, based on legislation law the employer has a
right to dismiss the employee because Mr Bean was on a fixed term contract.
 Mr Bean was dismissed on an end date of his employment contract.
 It is recommended that the organisation should not give false hope on employees.
 The employer should not give the employee a year plan schedule if they are not going to renew the
employment contract.
 The should be no lack of communication between the employer and employee, the employer should
inform the employee if he/she is not satisfied with the work performance of an employee.
 The enterprise should provide training to its employees, so that they can be competent at work.

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