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Thread: Can I be dismissed after accepting new contract with same company?

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    Can I be dismissed after accepting new contract with same company?

    Good day,

    I need some advice.... my boss asked me whether I would like to terminate my contract permanently or terminate the existing contract and continue working on a new contract. I chose the latter.... after which they said sorry no we are not renewing your contract.

    Is this allowed?

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    Diamond Member HR Solutions's Avatar
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    Surely if a new contract is drawn up it refers to the old one and if they don't draw up a new contract the old one is still in effect ?


    Unless of course the old contract is finished ?
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    @ HR Solutions, is the non-renewal of a contract (other than a fixed term contract) not a de facto dismissal?

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    Diamond Member HR Solutions's Avatar
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    Well not being in the HR business as such but being in the placement of staff, I cannot really see anything wrong if a contract ends and not re-hiring the person. But if the employer is misleading the employee for some reason, then there might be something that he is hiding ... ?

    We have quite a lot of temps on our books that work for companies on a "contract" basis. After every contract ends they are either renewed with another contract or not.

    I might be reading this guy wrong, but I was reading it in the sense of a short term contract, not a permanent contract.

    I think he needs to perhaps explain a bit more
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    Junior Member Vixremento's Avatar
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    Contracts are tricky things. I believe they're meant to keep the employees on an extended trial with the option to renew and/or make permanent. As a contractor I took home more cash but I lost other benefits (paid leave, pension/medial-aid contributions, provident fund, etc.). I eventually went permanent and with that I was actually happier than when I was contracting (I just felt accepted and safer). Their contract was of that nature that if they didn't renew I'd have to find something else. I knew the risks going in though.

    I'm currently working for a smaller company (I honestly hate working for a large company that is a corporate or on the verge of getting to that size where you're just a number) and some of those benefits are sorely missed. Now though I get to work from home for at least 90% of my working hours (admittedly I do put more time in that I would have if I had to go into the office daily).

    Of course the work I do now is something I truly love and enjoy (plenty of stress but I'm always learning, experimenting and keeping out of mischief lol...man I love the smaller companies...crap ours is exploding - CURSED I AM ! ). Not sure I've helped, sorry about that.

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    Diamond Member tec0's Avatar
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    Quote Originally Posted by Dientjie View Post
    Good day,

    I need some advice.... my boss asked me whether I would like to terminate my contract permanently or terminate the existing contract and continue working on a new contract. I chose the latter.... after which they said sorry no we are not renewing your contract.

    Is this allowed?
    People hate me already but i will simply say this... Google find and phone the CCMA ask them and explain the situation. Many people HATE it but i see no harm in getting real advice from the CCMA. You will know where you stand and know if it is worth it moving forward. But the little information you did provide sound to me that you where low balled... I don't know... BUT if it is the case then get the first hand information. Make a informed choice.
    peace is a state of mind
    Disclaimer: everything written by me can be considered as fictional.

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    Fixed term contracts are often used in the labour field for different reasons. Sometimes employees are needed on a project for a specific time period or a position is only available for a time, for instance where an employee is on maternity leave. In the building industry fixed term contracts could be terminated at the arrival of a specific event, for instance a plasterer's contract will terminate if that portion of the project is finalised.
    These contracts come to a natural end at the time stipulated in the contract or at the arrival of a specific event, when the employee's services will terminate. That is then the end of the relationship.
    From:

    http://www.labourguide.co.za/contrac...term-contracts
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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Dientjie View Post
    my boss asked me whether I would like to terminate my contract permanently or terminate the existing contract and continue working on a new contract. I chose the latter.... after which they said sorry no we are not renewing your contract.

    Is this allowed?
    The critical element is the nature of that (1st) contract. If it was a permanent contract, then both offers constituted a dismissal.

    However, that seems rather obvious - Was it perhaps a fixed term contract due to expire anyway?
    If yes, then the conditions of the fixed term contract are going to be relevant. There have been changes to the LRA that became effective as of 1st January this year and might mean your fixed term contract had already become deemed a permanent contract - in which case you could well be in good shape to mount a challenge.

    What always worries me in these things is ultimately, the exact language used becomes very important. For example if this is exactly what was said -
    terminate the existing contract and continue working on a new contract
    Effectively, that's an offer of employment...
    The trouble with opportunity is it normally comes dressed up as work.

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