In terms of the common law contract of employment an employee who is a party to a fixed term contract, unlike an indefinite period contract, cannot be dismissed. The contract terminates upon an agreed or ascertainable date determined by the parties and the conclusion of the contract. Section 186(1)(b) of the Labour Relations Act 1995, however, defines the failure to renew a fixed term contract on the same or similar terms where the employee reasonably expected the contract to be renewed, as a dismissal. In this treatise the scope and content of this provision is considered with reference to relevant case law. The factors and considerations that establish a reasonable expectation are highlighted and considered. The question as to whether or not this provision also provides for the situation where an employee expects indefinite employment is also considered and critically discussed. The author concludes that the provision should not be interpreted in such a manner that an expectation of permanent employment is created.

Organisations face many obstacles in maintaining high quality standards and enhancing their competitive positions. It is not just the external factors, such as market fluctuations, but also internal obstacles, that have an effect on the competitiveness of organisations. Most of the internal factors are the result of poor management practices such as insufficient employee development paths, lack of mentorship programmes or job insecurity which results in the poor performance and commitment levels of employees. However employees are more willing to provide efficient and effective practices if they are committed to the organisation. A committed workforce can be created through many practices. Some of these practices include, creating an environment where employees feel as though they are part of the organisation and that their actions directly influence the success of the organisation (Kingston 2007); building long lasting and fair relationships between staff and supervisors (Manetje 2009:50); providing partial organisational ownership for employees through employee share ownership schemes (Employee share ownership plan guidelines 2007:3); creating an organisation structure which binds employees and groups together and removes bureaucratic practices (Brooks 2009:190) and creating management styles that encourage employee involvement (Manetje 2009:51) Unfavourable conditions within the economy are not making it any easier for organisations to become more competitive. Organisations have had to downsize, restructure and transform in order to cut costs as the demands for goods and services slowed down. However, these practices have resulted in an insecure work environment for employees and have posed complex challenges for management. (Coetzee 2005). Employment contracts have therefore become popular tools for managing economic downturns. Organisations opt for more temporary staff so as to easily reduce headcount when costs need to be lowered. Employment contracts give organisations the advantage of flexibility which is a key area for success in turbulent business environments (Krausz, Bizman & Braslavsky 2001:302). Previous research on temporary contracts has revealed lower commitment levels of staff than other types of contracts such as permanent and fixed-term contracts (Guest 2004:12). Therefore, there needs to be a balance between various employment contracts; a balance which brings out the best in organisational performance. The different types of employment contracts are also important tools to use to enhance commitment within the organisation. For that reason, it is essential to understand the linkage between the types of contracts and organisational commitment and whether certain contracts result in higher levels of organisational commitment. The primary objective of the study is to identify factors which influence organisational commitment as well as to investigate whether organisational commitment and the different types of employment contracts can increase employee motivation and job involvement within the automotive industry environment. Given the primary objective of the study, a quantitative research paradigm was followed in testing the relevant hypotheses. A five-point Likert scale questionnaire was conducted to gather empirical data from the respondents employed within the automotive industry. The target population of the study was the employees within the automotive industry (Volkswagen of South Africa). A convenience sampling technique was used to distribute the questionnaires and the researcher made use of both manual hand-outs and an online system called the Survey Monkey to gather the data. The sample was restricted to 260 respondents. The main findings of this study revealed that the dimensions, workplace culture, job security, career development and personality were statistically significant and had a positive influence on organisational commitment. Workplace culture proved to be the most significant positive influence on organisational commitment. Thus, if an organisation adjusts this dimension to better suit the employees, the result could be an enhanced level of employee commitment. On the other hand, management style and mentoring were found to be the least important in influencing organisational commitment in the automotive industry. Furthermore, the results illustrated a significant positive relationship between organisational commitment and the dependent variables, employee motivation and job involvement. The study also identified the link between employment contracts and organisational commitment, job involvement and employee motivation. However, a statistically significant relationship only existed between employment contracts and job involvement. Thus the different types of contracts have an effect on the level of employee involvement within an organisation. The implications of the findings are that organisations within the automotive industry should focus on areas that have a substantially greater impact on organisational commitment. These areas include workplace culture, job security, personality and career development. Organisations thus need to find methods or processes which facilitate the development of these areas. In order for organisations to move from good to great, a workforce that is committed to the goals and objectives is required.

Thesis (LLM. (Labour Law)) -- University of Limpopo, 2012 / In Joseph v University of Limpopo & Others (JA14/09) [2011] ZALC 8 (13 May 2011) the Labour Appeal Court affirmed that there was unfairness in the process adopted by the employer in failing to renew the employee’s fixed term contract. This research paper examines the Labour Appeal Court’s reasoning in this case, with particular focus on the development of an implied term that each party to an employment contract owes the other a mutual duty of trust and confidence, and general reasonable behaviour. This paper further argues that mutual trust and confidence in the employment context protects the legitimate expectations of employees by serving as a bulwark against illegitimate conduct or acts of on the part of the employer designed or likely calculated to destroy the employer-employee relationship, thereby ensuring fuller protection of an employee’s constitutional rights. Joseph v University of Limpopo & others is of great significance. It indicates that the employer’s ability to rely successfully upon its prerogative not to renew fixed term contract where an employee has legitimate expectation of renewal may be contingent on its having acted in a manner consonant with mutual trust and confidence.

LL.M. (International Commercial Law) / “It is in this very context of employment relationships which have a cross-border dimension that conflict of law between individual legislative systems in the area of employment law raise complex questions of law. One of the consequences of this is that they often present the courts … which are called upon to determine the law applicable to an employment contract with considerable problems. Alongside the customary difficulties associated with interpreting the employment contract comes the uncertainty as to what the best approach is to determining the applicable law. These difficulties in judicial practice are on the increase as it becomes more common for workers to be posted, more EU citizens avail themselves of the freedom of movement for workers and more undertakings enter into relationships with firms overseas or operate places of business in other countries. The – temporary or indefinite – posting of large numbers of employees has become an important aspect of international economic relations, not only within the European internal market but, more generally, throughout the world. It is for that very reason that there is an urgent need for conflict of law rules which offer the contracting parties foreseeable solutions to the numerous problems that affect employment relationships...”Like Advocate General Trstenjak, South African writers are not ignorant of the complications that international contracts of employment bring. As correctly pointed out by Calitz, globalisation has resulted in many South African employees increasingly working for South African employers outside of South Africa and the determination of any disputes that may arise in these unique employment relationships requires the application of conflict of laws. This is problematic and the present author submits that there is a lacuna in South African private international law in respect of employment contracts involving a foreign element. A number of factors have contributed to this gap in South African private international law, namely the infrequency with which judges in South African courts have been called upon to determine such issues.