Results 1 to 9 of 9

Thread: Fixed term contractors vs permanent employees - salary.

  1. #1
    New Member
    Join Date
    Jun 2011
    Location
    JHB
    Posts
    6
    Thanks
    3
    Thanked 0 Times in 0 Posts

    Fixed term contractors vs permanent employees - salary.

    I'm struggling to find definitive answers to salary related question for fixed term employees.
    What is considered acceptable compensation for fixed term employees?
    Should they be paid similarly to their permanent counterparts?
    If not, how much of a difference in pay to their permanent counterparts is acceptable?
    Should their original contract be rolled or should they obtain a further qualification during the term of employment, are they entitled to an increase?
    Any tips on where I could get more info about this is appreciated!

  2. #2
    Email problem
    Join Date
    Feb 2011
    Location
    polokwane
    Posts
    26
    Thanks
    0
    Thanked 4 Times in 3 Posts
    try www.acts.co.za

  3. Thanks given for this post:

    Mary (21-Jun-11)

  4. #3
    Gold Member
    Join Date
    Jun 2010
    Location
    Johannesburg
    Posts
    843
    Thanks
    181
    Thanked 177 Times in 146 Posts
    Hi Mary

    I don't think you will find a definitive answer. Unless you work for the Government or a huge corporate with existing salary structures, then any employee's salary is a matter of negotiatation between employer and employee.

    Factors such as market related rates and the employee's previous salary would influence the discussions, but aren't decisive factors. In my opinion the actual employee skills (not just their qualification but rather how they work) are what should determine their pay rate. Whether they are permanent or temps would probably be a minor factor.

    As for the increase, I would suggest you decide amongst yourselves, clearly upfront in the contract whether an increase in qualification would result in an increase in pay. I would imagine that if this resulted in more productivity for the company, then a pay increase would be a good idea. If it was largely irrelevant, then no increase.

    As for the roll over, then its a new contract and you negotiate again. All things being equal, I would say its reasonable to have an inflation linked increase after a year. Of course factors such as whether they are still doing the same job and whether their performance has matched the expectations created in the cv and job interview might affect decisions. Ultimately its down to how much the employer is prepared to retain the services of the employee and how much the employee feels they can get if they went elsewhere.

  5. Thanks given for this post:

    Mary (20-Jun-11)

  6. #4
    New Member
    Join Date
    Jun 2011
    Location
    JHB
    Posts
    6
    Thanks
    3
    Thanked 0 Times in 0 Posts
    Ok so there are no hard and fast rules with this, it seems that it's dependant on the situation as well as on the company policy.
    There is a perception that fixed term contractors should be earning more than their permanent counterparts - but again I suppose this depends on the skill set of the employee etc.
    Thank you for that input - it certainly helps!!

  7. #5
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by Mary View Post
    There is a perception that fixed term contractors should be earning more than their permanent counterparts
    Given the lack of stability and benefits, I can understand where that perception comes from. But as far as I'm aware it isn't legislated - at least not in a general way.

  8. Thanks given for this post:

    Mary (21-Jun-11)

  9. #6
    New Member
    Join Date
    Jun 2011
    Location
    JHB
    Posts
    6
    Thanks
    3
    Thanked 0 Times in 0 Posts
    I imagine though that good business practice would be to be fair in this regard - is it possible that there is a possible obligation for this if it is the accepted practice/norm?

  10. #7
    New Member
    Join Date
    Jun 2011
    Location
    JHB
    Posts
    6
    Thanks
    3
    Thanked 0 Times in 0 Posts
    Sorry, I mean, is there potential grounds for liability if the expectation (based on market practice) is that they should be paid at a higher rate? i.e. is market practice enough to create such? Or is it again dependent upon the situation?

  11. #8
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,648
    Thanks
    3,304
    Thanked 2,676 Times in 2,257 Posts
    Blog Entries
    12
    Quote Originally Posted by Mary View Post
    Sorry, I mean, is there potential grounds for liability if the expectation (based on market practice) is that they should be paid at a higher rate?
    I doubt a claim based on "common market practice" would fly. Besides which, there are industries where the "common practice" is to pay fixed term contractors at a lower rate than permanent employees.

    When it comes to "good business practice", I'd suggest only that the business is consistent in its handling of the issue (rather than pander to perceptions of common market practice). A claim of precedent or established company operating procedure would have some weight and an inconsistent approach could open doors to a claim (if not reasonably justifiable).

  12. #9
    New Member
    Join Date
    Jun 2011
    Location
    JHB
    Posts
    6
    Thanks
    3
    Thanked 0 Times in 0 Posts
    Makes sense that consistency is key, thank you!

Similar Threads

  1. [Question] Fixed term employee/rolling over contracts/independent contractor??
    By NEO in forum Labour Relations and Legislation Forum
    Replies: 15
    Last Post: 10-Feb-11, 03:34 PM
  2. Forcing employee to fixed term contract
    By BarryTemp in forum Labour Relations and Legislation Forum
    Replies: 5
    Last Post: 27-Apr-10, 04:02 PM
  3. [Article] TERMINATION OF FIXED TERM CONTRACTS
    By BBBEE_CompSpec in forum Labour Relations and Legislation Forum
    Replies: 0
    Last Post: 03-Nov-09, 11:56 PM
  4. [Question] Probation vs Fixed term contract
    By sideways in forum Labour Relations and Legislation Forum
    Replies: 5
    Last Post: 27-Oct-09, 04:04 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •