across the bar

Fixed term contracts and the management of an employee’s expectations

by Ashley - Posted 06 June 2011

The recent case of Joseph v University of Limpopo heard in the Labour Appeal Court highlights the dangers of dismissing an employee who reasonably expects an employer to renew a fixed term contract of employment on the same or similar terms and the employer fails to do so.

Dr Joseph, who was originally from India, was appointed on a fixed term contract of three years as a senior lecturer at the University of Limpopo.  When his fixed term contract had come to an end in 2000 the University advertised his position. This was a formality in order to comply with the legislative requirement pertaining to his employment as a non-South African citizen.  Dr Joseph applied for and was appointed to his position for a further period of three years and once again on a fixed term contract.

Towards the end of 2003 Dr Joseph became anxious when his post was not being advertised. It had by then become a formality for his post to be advertised just before his contract would come to an end, and he would then apply for and be re-appointed to that post.

After much delay, the post for senior lecturer in English in the Faculty of Humanities was finally advertised in December 2003. Dr Joseph applied for the position as advertised however, his application was unsuccessful. A person by the name of Dr Dlamini-Sukumane was appointed and Dr Joseph was placed as the second best candidate for the position.

Very shortly after accepting the position Dr Dlamini-Sukumane resigned and the position of senior lecturer was once again vacant. Nevertheless, the university declined to appoint Dr Joseph to that position.

Prior to 2003 Dr Joseph had developed two programs, Contemporary English Language Studies and Multilingual Studies. These programs were unique and were offered and applied in English Language studies. Dr Joseph had assumed that because of his involvement in teaching these new courses his services would be needed by the university and that his contract would be renewed.

The Court held that it was reasonable for Dr Joseph to have expected that his contract with the university would be renewed. A failure to renew his contract constituted an unfair dismissal and the University of Limpopo was ordered to reinstate Dr Joseph to his position. The university was further ordered to pay to Dr Joseph back pay in an amount of R 71 355.00.