Current policy on fixed-term employment contracts

Current policy on fixed-term employment contracts | Previous policy on fixed-term employment contracts

Policy on fixed-term employment contracts

Effective date: 1 January 2011 (previous policy - pre 1 January 2011)

Purpose

The purpose of this policy is:

To strengthen our ability to attract and retain high quality staff;

to structure job categories in a manner that reflects our organisational requirements;

to ensure that we treat staff on fixed term contracts staff fairly; and

to ensure good practice in terms of labour law and its associated principles.

This policy clarifies the distinction between appointments against external funds which are not secure in the long term (referred to hereafter as ‘grant funding’), and staff appointed on sustainable core university funding (General Operating Budget and interest from endowments that are dedicated for a particular purpose), referred to hereafter as ‘internal funding’.

Related policies

This policy should be read in conjunction with the following policies:

Adjunct appointments

Appointment without advertisement (academic or PASS)

Post-doctoral fellows (see: Postdoctoral research fellowships and Funding for postdoctoral research)

Recruitment policies and procedures

Retirement, early retirement, incentivised early retirement and post retirement appointments

Applicable to

This policy is applicable to all fixed-term appointments excluding:
1. Students who are appointed as staff in roles linked to their studentship (e.g. demonstrators, tutors, sub-wardens, library assistants etc.). They will also not be offered contracts of employment for these jobs for periods outside of their year of registration.
2. Staff who work less than 20 hours a week and who are remunerated on an hourly, sessional or daily basis.
3. Staff appointed on an ad hoc or consultancy basis to undertake a specific once-off project. Such projects and appointments are usually a few days to three months and only under exceptional circumstances may exceed 18 months.
4. Retired staff who are reappointed post retirement and managed in accordance with the policy on retirement, early retirement, incentivised early retirement and post retirement appointments.
5. Executive officers and other senior staff appointed on contracts individually approved by Council.
6. Staff who are not paid (e.g. Honorary Professors and Honorary Research Associates).
7. Adjunct staff appointments.

Principles

The following principles underpin this:
1. The type of contract (i.e. whether fixed term or permanent) will depend on the nature, content and requirements of the job and whether the need for job is for a fixed term or is of an ongoing nature (i.e. the type of contract is related to the job not to the needs, skills or profile of the person to be appointed).
2. The job level is dependent on the job content or academic criteria, not on the availability of funding. The CoE for grant funded staff may depend on funding.
3. Both fixed term contract and permanent staff will be managed against job requirements in accordance with the relevant performance management processes.
4. Academic staff on fixed term contracts will only serve probation if this is specified in their appointment contracts. In such cases the contract will state the duration of the probation period. At the end of the probation period the appointment will either be confirmed for the duration of the full contract, or extended, or terminated with one month’s notice.
5. If an appointment is for less than 3 months, the appointment may be made without advertisement or recruitment process. If the duration of the contract is envisaged to be from 3 months to 2 years, appointment may be made without advertisement or recruitment process but must be authorised by the relevant Dean or Executive Director. If an appointment is envisaged to be for longer than 2 years it must be advertised unless this requirement is waived by the ED or Dean for good cause shown.
6. Conditions of service are linked to the length of the fixed term contract. Positions of 2 years or less (T1 contracts) duration will be considered to be of a temporary nature and the benefits will normally be the minimum in accordance with the Basic Conditions of Employment Act (BCEA). Positions of between 2 - 5 years (T2 contracts) will be considered less temporary in nature and may offer benefits greater than the BCEA. These are listed in Table 1.
7. If operational requirements or failure to secure further funding result in the termination of a permanent job or premature termination of a fixed term contract position, the relevant retrenchment policies will apply.

Policy details

Guidelines for determining whether an appointment should be permanent or fixed term.

In order to determine whether an employment contract should be for a fixed term or permanent the requirements and nature of the job must be documented and understood. The guidelines below will assist the line manager in deciding whether or not the job is of a fixed term or permanent nature.

Fixed term employment contract
The employment contract will be of a fixed term nature if one or more of the criteria below are fulfilled.

The job will entail:
- A once-off specific project with (i) specified start and end dates, or, if the end date cannot be specified in advance, with (ii) a clear definable completion point to the project; or
- the replacement of permanent staff on authorised leave or secondment for a specified period of time; or
- temporary replacement where a permanent post is under advertisement, also for a specified period of time; or
- professional / consultancy work for a specified time period or for a specific task; or
- a limited academic or professional apprenticeship with clearly documented objectives (generally developmental in nature).

Permanent employment contract
Employees with permanent employment contracts are employed against needs which are deemed to be permanent. The posts which result may be expected to form part of the faculty, departmental or research group permanent staffing structure for as long as funding is available. Even if long term funding is not guaranteed, a post which is expected to last for more than five years should result in a permanent appointment.

Nature of fixed-term employment contracts

Length or period of a fixed term contract | Renewal and rollover of contracts | Sequential contracts and total period of employment | Conditions of service and remuneration for grant-funded staff | Termination of fixed-term employment contracts on grounds of redundancy |

Length or period of a fixed term contract
The period of a fixed term contract should normally not exceed five years. The duration of the contract may be determined by:
1. The actual duration where the start and end dates are known;
2. The achievement of specified outcomes where the exact period is unknown (an end date must nevertheless be specified and any change must be managed according to clear and specific deliverables which as far as possible should be specified in the contract);
3. Funding for a specific project. (In a given case the project may be defined but the funding may not guaranteed and the continuation of the contract is therefore made conditional on this. But this must not be done in a way that contradicts clause 6(b). Where the funding is of a recurrent nature the funding link cannot be used as a factor influencing the terms of the contract.

The letter of contract must indicate the conditions upon which the length of the contract is dependent. In the case of 7(b) and 7(c) above, the end date may be extended in accordance with the stated condition. A new letter of employment reflecting the changed conditions will be issued in this regard. A staff member must at all times be kept informed of circumstances affecting his or her employment and must be given appropriate notice on the termination of the contract.

Renewal and rollover of contracts
Extension or rollover of fixed-term employment contracts will not be the norm. Exceptions must be strongly motivated. This must be stated in all fixed term contracts: (i) so that the appointee understands this; (ii) to avoid fixed term contracts being used to bypass the University’s requirements when making permanent appointments; (iii) to ensure that staff have permanent staff benefits if their employment is de facto ongoing.

If a need for extension (or rollover) arises, permission must be obtained from the relevant Deputy Vice-Chancellor (DVC) and the ED HR, and a new contract must be entered into. If the contract renewal results in the total contract exceeding five years in the same job (see 10 below), the Appointment Without Advertisement policy and procedure must be used.

An appointment in the same job may be rolled over into year 6 if and only if
1. the ‘Appointment Without Advertisement’ policy and procedure has been followed; and
2. it is made permanent even where the funding is not guaranteed

Sequential contracts and total period of employment
An individual may take up a number of different subsequent (and possibly continuous) positions which are fixed-term employment contracts. On condition that the jobs are genuinely and significantly distinct, the contracts will be viewed as independent of each other and will not result in the individual being appointed to permanent conditions of service, unless the position itself is of a permanent nature and due process for this appointment has been followed.

Conditions of service and remuneration for grant-funded staff

All fixed-term staff ought to receive applicable benefits and pay according to the current UCT remuneration policy for fixed-term contract staff. Cognisance must be taken of the arrangements for remuneration of grant-funded staff referred to in ‘the principles’ section of the policy principles. Grant holders using externally sourced funds must make every effort to budget to meet the applicable UCT remuneration rates and benefits for their staff.

The University will annually set guideline ranges for fixed-term contract staff pay on which contract staff will ordinarily be paid. The annual salary range movements will be in line with those for permanent staff.

For fixed-term employment contracts, the contract must specify either:
1. A fixed CoE for the period of the contract (i.e. no increase in the subsequent years of contract); or
2. An increase in line with the move for fixed-term contract staff, and with performance; or
3. A discretionary increase (at the time of the UCT annual salary review period) within the appropriate range based on performance.

Termination of fixed-term employment contracts on grounds of redundancy

Should a redundancy situation arise before the end of the contract period the retrenchment process will be initiated. A levy on all fixed-term contracts towards a central fund covers concomitant costs in this regard.

Table 1: Conditions of service for fixed-term contracts (with comparisons to those for permanent appointees)

Conditions Permanent Contract <= 2 yrs (T1) Contract > 2 yrs & <= 5 yrs (T2)

Leave Annual: PASS staff 26 working days per annum 1,25 days per month worked 26 working days

Annual: Academic Month of January 1,25 days per month worked Month of January

Sick 30 calendar days full pay per annum for first 3 years of 6 year cycle.
30 calendar days half pay per annum for years 4 to 6 of 6 year cycle.
In total, 90 calendar days full pay and 90 calendar days half pay over 6 years. 1 day per month worked 1 day per month worked

Family responsibility leave 5 working days paternity leave, 5 working days compassionate leave
Family responsibility leave policy BCEA 3 days (state as family responsibility leave) 5 working days per annum

Maternity 4 months paid BCEA (4 months unpaid, may apply for UIF) 4 months paid

Study 2 days per subject up to a maximum of 6 per annum Not eligible 2 days per subject up to a maximum of 6 per annum

Special (all categories) As per current policy
Special leave (PASS)
Special leave (academic) Not eligible As per current policy
Special leave (PASS)
Special leave (academic)

Study & research and contact leave 2 months per year for staff on academic conditions of service
Exclusions:

academic staff appointed as Research Officers or

part-time academic staff

grant funded staff where grants have not made provision for such leave

Not eligible Not eligible
But if the fixed-term contract appointment is a full-time lectureship (or other academic rank) and subsequently becomes permanent the period served as a fixed-term contract appointee may be recognised for study and research leave leave entitlement, provided the fixed term appointee is appointed to the same job. This will be a matter for the Selection Committee to propose at the time it proposes a permanent appointment.

Access to URC funds (only applies to staff appointed on academic or research conditions) Yes Not eligible Not eligible for URC grants.
May be supported from grant funds

UCTRF Compulsory membership Not eligible Compulsory membershipⁱ

Medical Aid Compulsory membership as per current policy Not eligible Compulsory (proof of own or partner/spouse’s medical aid if not joining UCT’s medical aid)

Private work policy Yes Yes Yes

Staff tuition rate Yes, in accordance with staff tuition fee rate policy Yes, in accordance with staff tuition fee rate policy Yes, in accordance with staff tuition fee rate policy

Relocation allowance Yes, refer to policy No No, unless specified in contract

Ad hominem promotion eligibility Yes, refer to policy No Yes, for staff on academic, research and scientific and technical conditions of service, in accordance with policy.
Note: 1:

Staff will be eligible for ad hominem promotion of staff if the grant can fund this,

if the grant cannot support the cost of promotion, the applicant should be given the choice, spelled out clearly in writing, viz of (i) being considered for ad hominem promotion in rank-title only, without pay increase and no claim on the University, or (ii) not being considered (i.e. to have the choice of being considered for promotion which if granted will be an honorary recognition of academic status.)

Note 2:
Since probation terms for fixed term contract staff are different and individualised, 3 years minimum service is required before promotion is possible.

Probation and tenure Yes, refer to policy No Only if specified in contract, in which case the period of probation and the timing of interim assessments must be specified. At the end of probation the employment may either be confirmed for the full duration of the original contract, extended for a further period or terminated with one month’s notice. See: Probation and confirmation

Notice period Refer to policy
Resignation (PASS)
Resignation (academic) One month or as stated in letter of contract One month or as stated in letter of contract

Occupational Health and Safety Eligible for appointment to duties in terms of 16.2 of the OHSA Eligible for appointment to duties in terms of 16.2 of the OHSA Eligible for appointment to duties in terms of 16.2 of the OHSA

Medical aid post retirement subsidy Eligible, as per current policy Not eligible Not eligibleⁱⁱ

ⁱ UCTRF membership is in two categories; for permanent staff and for fixed term contract staff; For fixed term contract staff there is no income continuation cover for disability, but a lump sum cover of three times Deemed Pensionable Amount.

ⁱⁱ As the promise of a post retirement medical aid benefit of grant-funded staff implies a future cost to UCT the Vice-Chancellor is to propose that contract staff become eligible for this if this can be pre-funded by a levy on grant holders when making fixed term appointments which include medical aid as a benefit All fixed term grant-funded appointments currently carry a levy of 1% of Cost of Employment (COE) to pay for the cost of retrenchment and such issues as maternity-leave leave replacements.

Page last updated: 10 June 2011