In terms of section 186(1)(b) of the LRA, failure to renew a fixed-term contract constitutes a dismissal if the employee reasonably expected the employer to renew it 'on the same of similar terms'.
The applicant employee in Vorster v Rednave Enterprises CC t/a Cash Converters Queenswood (2009) 30 ILJ 407 (LC) claimed that she was dismissed after serving a three-month probation period. The company denied that Ms Vorster was dismissed. Ms Vorster had signed two successive contracts, each of one month's duration. She was then permitted to work for a further month. The court held that the onus rested on Vorster to prove that she had a reasonable expectation that the contract would be renewed yet again on the same or similar terms. Although the question whether employees on fixed-term contracts can claim to have been dismissed if they expected to be appointed permanently remains moot, the court accepted that an expectation of renewal may exist even where the contract expressly stipulates that the employee should not expect renewal. The court found that Vorster had a reasonable expectation of renewal because she had been promised that she would be considered for permanent appointment after completion of the three-month probation period. It followed that Vorster had been dismissed.
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