Introduction and purpose | Applicable to | Not applicable to | Important Guidelines | General Provisions related to all fixed-term contracts | Referenced Policies | Table 1: Conditions of service for fixed-term contracts
 

Revision Number		Revision Date	Effective 2 December 2023 To be reviewed in 2026
Approved by	Council	Date	2 December 2023
Policy owner	Director: HR Director: Client Services
Reviewed by	HRMAG, Executive, Dean’s Forum, UHRC, IF,  Council
Enquiries	HR Client Services See: HR Contact list

1 Introduction and purpose

UCT is fully committed to fair labour practices and respecting all labour laws. This includes a commitment to open recruitment processes within the context of the prevailing labour laws and employing staff on a permanent basis as far as possible. UCT does not support casualisation of labour.

However, the nature of the academic and higher education sectoral environment including and the realities of overall funding arrangements as well as needs of the research endeavour necessitate that fixed-term contract arrangements remain a practical, desirable and relevant exception in these circumstances.

The purpose of this Policy is to:

i. determine which fixed-term work arrangements constitute an employment relationship;
ii. determine when a fixed-term contract is justified and the applicable recruitment procedures;
iii. define the conditions of service of staff on fixed-term contracts;
iv.  indicate how these relationships are remunerated and managed;
v.  ensure that staff on a variety of fixed-term employment arrangements are treated fairly for the duration of the contract and upon termination of the contract;
vi.  ensure compliance in terms of labour law and its associated principles; including protection of staff earning below the threshold in the Basic Conditions of Employment 75 of 1997 (BCEA), as amended, alignment with the LRA; and
vii.  mitigate risk to the University on potential labour disputes and claims.

Applicable to

The Labour Relations Amendment Act (Act no.6 of 2014) defines a fixed-term contract as:

“A fixed term contract means a contract of employment which terminates on the occurrence of a specified event, the completion of a specified task or project, or on a fixed date other than an employee’s normal or agreed-upon retirement age.”

Not applicable to

i.  Staff appointed on a permanent employment contract (except where permanent staff have additional fixed-term appointments);
ii. Service providers who have passed the dominant impression test per section 200A of the Labour Relations Act, and are bona fide independent contractors and therefore not staff;
iii. Service providers who have not passed the UCT Finance dominant impression test and are bona fide independent contractors but for whom PAYE must be withheld;
iv.  Staff in contracts which are not associated with remuneration at the University (e.g. Honorary Professors, Honorary Research Associates, unemployed learners on internships, and volunteers);
v. Post retirement appointments
vi. Adhoc and Paid on Claim appointments
vii.  Post-doctoral fellows (see: Postdoctoral research fellowships and funding for postdoctoral research);
viii.  Students appointed in specific staff roles linked to their studentship where the primary relationship with UCT is that of a student; and
ix. Individuals on internships and other such positions whose relationship with UCT is governed by a specific programme related to job exposure.

2 Principles and guidelines

2.1 Determining whether a work arrangement is an employment relationship

Certain categories of work and or persons are not classified by law as employees and are not entitled to the conditions of employment.

If a person meets any of the following criteria, then they would meet the criteria for an employee (staff member):

i. The person reports to, or is subject to, the control and direction of a UCT line manager or supervisor in carrying out and completing their work; and/or
ii. The person’s hours of work are subject to the control or direction of the University; and/or
iii. The work is related to the core business and operations of UCT, the person forms part of the organisation and UCT bears the risks of bad workmanship or poor performance; and/or
iv. 80 percent or more of the person’s work/earnings are from UCT (economic dependence exists); and/or
v.  The person’s work is done at UCT and not at his or her own premises or UCT provides the tools and equipment; and/or
vi. In the case of a student, the work is unrelated to his or her student role as specified by the university.

The above criteria are offered as a guide only. The UCT Finance Dominant Impression Test must be completed if in doubt. 

Persons who are not classified as employees may fall into the following categories:

i.  Students who are paid a stipend, or who are paid according to a schedule supplied by the department or residence;
ii. Independent contractors under a service agreement, typically in longer relationships with the University, who are paid a retainer or who invoice, where UCT deducts tax and UIF on their behalf, but where they are not eligible for other conditions of service;
iii. Independent contractors doing ad hoc work for the University who are paid through finance against an invoice where UCT does not deduct tax or UIF; and
iv. Post-doctoral fellows (see: Postdoctoral research fellowships and funding for postdoctoral research).

2.2 Determining whether an appointment should be for a fixed-term

2.2.1 To determine whether a contract should be for a fixed-term or permanent, the requirements and nature of the job must be documented and understood.

2.2.2 Classification as a fixed-term contract (as opposed to permanent) will depend on the nature, content and requirements of the job and whether the need for the job is for a fixed-term or is of an ongoing nature.

2.2.3 By contrast, a permanent employment contract is, for operational needs, deemed to be ongoing and open-ended. There is no reason to expect the work to come to an end; the position will always be needed looking into the future. These positions may be expected to form part of the faculty or departmental permanent staffing structure. Within research entities, the operational need is also defined by continued funding and these units will have to make a determination of which positions are made permanent relative to operations and financial sustainability.

2.2.4 Employees earning below the BCEA threshold are deemed to be employed for an indefinite duration in terms of section 198B of the LRA where a contract exceeds a 3-month period, where the term of the contract cannot be demonstrated to be a justifiable reason in terms of section 198B.

2.2.5 No one may be appointed on a fixed-term contract except in accordance with section 198B of the Labour Relations Amendment Act, No 6 of 2014, reproduced hereunder:

“(3) An employer may employ an employee on a fixed term contract or successive fixed-term contracts for longer than three months of employment only if—

(a) the nature of the work for which the employee is employed is of a limited or definite duration; or

(b) the employer can demonstrate any other justifiable reason for fixing the term of the contract.

 (4) Without limiting the generality of subsection (3), the conclusion of a fixed term contract will be justified if the employee—

(a) is replacing another employee who is temporarily absent from work;

(b) is employed on account of a temporary increase in the volume of work which is not expected to endure beyond 12 months;

(c) is a student or recent graduate who is employed for the purpose of being trained or gaining work experience in order to enter a job or profession;

(d) is employed to work exclusively on a specific project that has a limited or defined duration;

(e) is a non-citizen who has been granted a work permit for a defined period;

(f) is employed to perform seasonal work;

(g) is employed for the purpose of an official public works scheme or similar public job creation scheme;

(h) is employed in a position which is funded by an external source for a limited period; or

(i) has reached the normal or agreed retirement age applicable in the employer’s business.”

2.3 Recruitment for fixed-term contracts

2.3.1 If the duration of the contract is for 12 months and less, an appointment may be made without being advertised or a formal recruitment process.

2.3.2 If the duration of the contract is for longer than 12 months, the position must be advertised subject to the UCT Recruitment policies.

2.3.3 If there is an urgent need to fill a post which exceeds 12 months, then it is advisable to make an interim appointment for 12 months whilst the position is advertised.

2.4 Entering into a fixed-term contract 

2.4.1 Entering into a fixed term contract is permissible only if there is a justifiable reason and a recruitment process has been followed. (refer to clauses 2.3.2; 2.3.3 and 2.2.5). This is also the case with any extension of the contract. Each contract will be regarded as a new contract and not extension of the previous contract.

2.4.2 A fixed-term contract, supported by a justifiable reason, may be entered into, subject to a due diligence exercise by the HR Business Partner responsible for that area, consideration of the Faculty/PASS Department Employment Equity Plan, signoff by the Dean/Executive Director and procedural approval by the Executive Director, HR (or nominee).

2.4.3 The line manager has the responsibility to ensure that all fixed-term appointments within their sphere are made in accordance with this policy and that no reasonable expectation is given to any fixed-term employee or candidate that they will be offered permanent employment.

2.4.4 Contract conversions i.e. move to permanent conditions of service (indefinite with no end date) refer to new “Waiver of Advertisement” policy.

3. General provisions related to all fixed-term contracts

3.1 Confirmation to the employee

The justifiable reason for the fixed-term contract must be stated in the letter of appointment given to the employee where the end date is clearly stated to avoid expectations of renewal or permanency.

3.2 Probation

3.2.1 Academic staff on fixed-term contracts will serve a probation period if this is specified in their appointment contracts. In such cases the contract will state the duration of the probation period.

3.2.2 At the end of the probation period, the appointment will either be confirmed for the duration of the full contract or terminated in line with the notice period set out in contract or the BCEA. See: Policy on probation and confirmation of appointment for academic staff.

3.3 Conditions of service

3.3.1 Fixed term contracts are considered of a temporary nature. The benefits applicable to these contracts are contained in Table 1. Table 1 provides details in respect of the various categories and their related conditions of service.

3.3.2 Staff employed on fixed-term contracts of longer than 24 months (T2) will receive conditions of service as contained in Table 1.

3.3.3 Staff initially appointed on contracts of 24 months and less (T1) via a recruitment process and who now enter the third year of service in the same position will be placed on T2 contracts.

3.3.4 All staff on fixed-term contracts are required to comply with UCT conditions of service and employee relations policies.

3.4 Remuneration and benefits

All fixed-term contract staff ought to be remunerated according to the current UCT remuneration policy. T1 staff are remunerated on the basis of a total cost to company/cost of employment (CoE). Where fixed-term contract PASS staff are in formally graded posts remuneration should align to the permanent staff ranges. Where fixed-term contract Academic staff meet Standard Academic Salary Package (SASP) criteria, remuneration should be aligned to Academic SASP.

3.5 Performance management

Fixed-term contract staff are managed against job requirements in accordance with the relevant performance management system and processes in place at the University.

3.6 Termination of contract appointments

3.6.1 A staff member must always be kept informed of circumstances affecting his or her employment and must be given appropriate notice if the termination dates of the contract are to change.

3.6.2 Should a termination arise because of the operational requirements of the employer before the end of the contract period, the retrenchment process is initiated in accordance with Section 189 of the Labour Relations Act and the fixed-term contract may be terminated prior to the stipulated end date. The costs of retrenchment for soft-funded positions are paid from the fixed-term contracts levy covered by a central fund.

3.6.3 If an employee earning below the threshold has been employed on a fixed-term contract exceeding 24 months, in terms of the LRA this employee will be entitled to be paid an amount of one weeks’ pay for each completed year of service at the end of the fixed term contract. Funding for this will be from the General Operating Budget (GOB) for GOB funded posts and from the Central Contingency Fund for Research funded posts.

3.6.4 The University is not legally obliged to provide staff on defined contracts notices of termination as the period is stipulated in their signed contracts.

Staff members on fixed-term contract are subject to all relevant university policies including those of staff conduct and discipline.

4. Referenced policies

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

• Postdoctoral research fellowships and funding for postdoctoral research

• Recruitment policies and procedures

• Policy on probation and confirmation of appointment for academic staff
• Redundancy, redeployment and retrenchment procedures
• UCT remuneration policy
• Leave Policy
• Waiver of Advertisement

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

Conditions	Fixed-term contracts 24 months and less (T1)	Fixed-term contracts of more than 24 months (T2)	Permanent (for comparison)
Annual leave: PASS staff	26 working days per annum (pro-rata for contracts shorter than 12 months)	26 working days per annum (pro-rata for contracts shorter than 12 months)	26 working days
Annual leave: Academic staff	26 working days (pro-rata for contracts shorter than 12 months)	26 working days per annum (pro-rata for contracts shorter than 12 months)	26 working days
Sick leave	2.5 calendar days per month worked	2.5 calendar days full pay per month worked and 2.5 calendar days half pay per month worked calculated per the sick leave policy	2.5 calendar days per month worked as part of a 6 year cycle calculated per the sick leave policy
Family responsibility leave	As per policy See: Family responsibility leave policy for Academic, PASS or Joint staff	As per policy See: Family responsibility leave policy for Academic, PASS or Joint staff	As per policy See: Family responsibility leave policy for Academic, PASS or Joint staff
Parental leave	As per policy	As per policy	As per policy
Study & research and contact leave	Not eligible as academic staff on fixed-term contracts are not required to meet the full performance criteria for standard academic staff	Not eligible as academic staff on fixed-term contracts are not required to meet the full performance criteria for standard academic staff	2 months per year for staff on academic conditions of service and 1 month per annum for permanent Soft Funded Academic Research Staff Exclusions: · Part-time academic staff · Grant funded staff where grants have not made provision for such leave
UCTRF	Not eligible	Compulsory membership	Compulsory membership
Medical Aid	Not eligible	Subject to Conditions of Service policy	Subject to Conditions of Service policy
Staff tuition rate	staff tuition rate policy	staff tuition rate policy	staff tuition rate policy
Ad hominem promotion eligibility	No	Subject to Faculty rules and criteria	Subject to Faculty rules and criteria
Probation	Not applicable	For academic staff 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	For academic staff 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	Two weeks or as otherwise stated in the contract	As stated in the contract	As stated in the contract See policy: Resignation (PASS) Resignation (academic)
Medical aid post retirement subsidy	Not eligible	As per current policy	As per current policy

Page last updated 14 December 2023