Description
Less than six months – fixed term contract – Section 35 of the Employment and Labour Relations Act – reasonable expectation of renewal – breach of contract – unlawful termination – termination contrary to agreement – premature termination of a contract of employment – wrongful termination – general damages – direct, natural or probable consequence – loss of salary – unexpired term – alternative employment.
- An employee who has worked for less than six months in a fixed term contract, whether he has worked for the same employer or not, is not protected under section 35 of the Employment and Labour Relations Act. However, that does not extend to employees with fixed term contract but who have developed reasonable expectation of renewal of such contracts.
- CMA has jurisdiction to arbitrate labour disputes arising from breach of contract.
- Unlawful termination is termination contrary to agreement without any reason and it amounts to breach of contract.
- Premature termination of a contract of employment is wrongful termination.
- General damages – based on the direct, natural or probable consequence of the act complained of.
- When an employer terminates a fixed term contract, the loss of salary by the employee of the remaining period of the unexpired term is a direct, foreseeable and reasonable consequence of the employer’s wrongful action – so an award of salaries from the remaining period of contract (in this case 21 months) is proper. The direct loss would have been mitigated if the employee had taken up alternative employment.
