Page 4 - KZN Business Sense 10.4 - Jay Patel - Ebook
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DID THAT FIXED-TERM CONTRACT REALLY END?




                  Johan van Deventer, KZN   to conduct a multi-faceted     the client’s will, or at the client’s    event lies in the sole judgment     Even if the employment
                    Regional Manager,   analysis to properly exercise a     discretion? (In other words,    or discretion of the client. A     contract is held to have been
                     LabourNet        value judgment as to whether     does the client determine when    commissioner will need to assess     validly terminated, a hearing
                                      the automatic termination of a     the trigger event occurs?)  the extent to which the event relied     would still be required to
                           he use of   contract amounted to dismissal   STEP 2 – Consider whether   upon by the client to terminate     determine if a dismissal
                           fixed-term   or not and proposed the following                         the work to which an employee     occurred on grounds of a
                     Tcontracts       approach as a guideline:      section 198 applies           has been assigned, is objective, or     reasonable expectation of
                    of employment      Par 44 to 56 of the Judgment sets   Does the matter fall within   whether it is closer to the will or     renewal or extension.
                      (FTCs) is       out the following:            the scope of Section 198, 198A   whim of the client. Termination   ■   Whether the employee claims
                      commonplace                                   and/or 198B of the Labour     of a particular employee’s contract     that the termination decision
                      in employment    The First phase in an enquiry is   Relations Act (‘LRA’)? If so, the   at the mere say-so of a client is     was tainted by bias (e.g., the
                       practices      determining if the ‘trigger event’   factors and requirements listed   likely not to pass muster as a     client demanding that a
                       and despite    leading to the application of the   in the relevant sections of these   valid automatic termination of     particular employee be removed
                       employees      automatic termination clause in a   statutory provisions should be   employment and is more likely to     from its premises) or other
                       agreeing and   contract has occurred.        considered which may determine   constitute a dismissal.      improper motive.
        entering into such agreements   The second phase of the inquiry   that there was deemed permanent                       ■   Whether the employee claims
        with eyes wide open and fully   could be sensibly conducted   employment of the employee   STEP 4 – Consider the effect of     that there were alternative
        accepting the temporary nature   in separate steps, along the   which would support a dismissal.  enforcement on the employee’s
        of their employment, these very   following lines:                                        statutory rights                positions available to him, or
                                                                                                                                  that he was unfairly selected for
        same employees still commonly                               STEP 3 – Consider the events   The commissioner should        termination, or that the
        claim the natural conclusion of   STEP 1 – Consider the     giving rise to the termination of   consider whether enforcing     employer engaged others to
        such agreements amount to unfair   employment contract      employment                    the termination clause, in the
        dismissal or even permanent    The wording and nature of the   ■   What event or events triggered    circumstances of the case, and     perform similar work after the
                                                                                                                                  termination of his contract.
        employment. The reality is that   employment contract should     the termination of the    on the application of the above
        quite often these employees are   be tested against the following     employment contract?  factors, would unfairly restrict    The Court concluded that
        correct.                      questions.                    ■   Are these events justified by    the employees’ right to fair labour   a commissioner after having
          In the case of November v Kele   ■   Is the duration for a specified      objective and proper economic    practices, the right not to be   considered all relevant evidence
        Mining Solutions and Others     period?                       and commercial considerations?  unfairly dismissed, or the right to   and factors, and having exercised
        (JR217/23) [2024] handed down   ■   Is the duration and termination     The closer the trigger event   challenge the fairness of a dismissal.  the required value judgment,
        on (31 July 2024) the Labour     of employment linked to the    for the contractual automatic    STEP 5 – Consider other   will either conclude that the
        Court cautioned employers and     attainment of a particular goal,                        issues that may affect the final   employee has successfully
        CCMA commissioners alike not     or the happening of a particular    termination is linked to the   determination of whether a   discharged the onus of proving
                                                                    occurrence of an objective (and
        to rely on the express wording     event, which can be objectively    objectively determinable) event   dismissal occurred  the existence of a dismissal, or
        of termination clauses in FTCs     verified?                (such as an agreed termination                              has failed to do so. 
        and confirmed that parties to   ■   Is the employment contract,                            Issues that may affect a finding
        an employment contract cannot     read as a whole, intended to or    date, or completion of the project   on whether a dismissal occurred,   T: +27 (0)31 266 6570
                                                                    to which an employee was
        contract out of the protection     does it have the effect of seeking    assigned), the more likely it is that   are, for example:  C: +27 (0)82 786 7480
        against unfair dismissal afforded     to bypass the statutory    the enforcement of the automatic   ■   Whether the employee claims a    E: johanvd@labournet.com
        to the employee, whether        protections against unfair                                  reasonable expectation of    W: www.labournet.com
        through the device of “automatic     dismissal, and/or the right    termination clause will not result     renewal of the fixed-term
                                                                    in an unfair infringement of
        termination” provisions or      to challenge the fairness of a    the employee’s right not to be     contract. This is a self-standing
        otherwise. The Court stated     dismissal?                  unfairly dismissed.             ground of dismissal in the
        that a commissioner seized                                                                  LRA and requires evidence
        with determining whether a    ■   Is the termination clause     At the other end of the spectrum     to be presented before a
        dismissal occurred would need     triggered by the exercise of    are the cases where the trigger     determination can be made.




        TRANSFORMATIVE POWER OF AI WORKSHOP



              he Minara Chamber       by Nazareen Ebrahim’s
              of Commerce proudly     facilitation, ensuring an engaging
        Thosted a highly successful   and informative session for all
        workshop on AI Digital        participants.
        Transformation on 13 August
        2024 in Durban. The event was   The Minara Chamber of
        presented by industry expert   Commerce continues to be at the
        Muhammad Asmal and expertly   forefront of providing its members
        facilitated by Nazareen Ebrahim,   with the knowledge and tools
        Director of the Public Relations    needed to thrive in the rapidly
        and Technology Committee at   evolving digital economy. 
        the Minara Chamber.
                                      For more information on this workshop,
          The workshop attracted a    please contact us via email,
        diverse group of professionals   E: kzn@minara.org.za / gtn@minara.org.za /
                                      westerncape@minara.org.za
        and business leaders keen to   W: https://minara.org.za/
        explore the transformative power   The Minara Chamber of Commerce
        of artificial intelligence (AI) in   is a formally constituted organisation
        the modern business landscape.   formed in May 2000 , through an
        Attendees were provided with   initiative by the Muslim community to
                                      create unity between businesses after
        valuable insights into how AI can   consultation with a broad spectrum of
        drive efficiency, innovation, and   the business community,  and has since
        growth within their organisations.  grown tremendously and now serves as
                                      a platform to represent and assist South
                                      African businesses, entrepreneurs and
          Muhammad Asmal’s            professionals.
        presentation was met with
        enthusiasm as he delved into
        the practical applications of AI,
        showcasing real-world examples
        of how businesses can leverage AI
        technologies to stay competitive.
        His expertise was complemented




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