As at 1 March 2015 certain amendments to the Labour Relations Act came into operation. One of the main amendments with far-reaching consequences for employers and employees alike is the change to laws governing fixed term contracts. Where the amendment is applicable to the parties (as there are exceptions) section 198B limits the instances when employers and employees can enter into fixed term contracts. Furthermore, the amendment attempts to create greater equality between employees on fixed term contracts and their counterparts with permanent contracts.
For an employer to use a fixed term contract it will have to prove that the nature of the job is of a limited or definite period, or show any other justifiable reason why the term of the contract is limited.