The Court held that an employer may not rely on vague formulations such as “completion of tasks,” or on rolling fixed-term contracts and “call-back” arrangements, to escape the deeming provisions of section 198B of the Labour Relations Act 66 of 1995 (LRA). Two employees placed with a footwear manufacturer and distributor (the client) by a temporary employment service (TES) for longer than three months were deemed to be the client’s permanent employees under section 198B(5) of the LRA, because their contracts neither recorded an end date nor stated a valid reason for fixing the term.
The Court reviewed and set aside the arbitration award in respect of those two employees, substituted findings that they had become permanent employees by December 2018 and were unfairly dismissed, and ordered their reinstatement with full retrospective effect to 2 January 2019 on terms and conditions “on the whole no less favourable” than those governing the client’s directly engaged employees in the same or similar positions.
A TES supplied three general workers to the client’s shoe distribution facility. Each had worked there continuously from 2015 or 2016 until December 2017. Their employment was then interrupted for five months, from January 2018 until late May 2018, when each was re-engaged. They worked without interruption from late May 2018 until the client’s annual December shutdown, a period of some seven months. In 2018 they earned R17.36 per hour, below the...
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