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Which contract do I need?

Answer a few questions about the person, the pay, the period and the reason, and get the written instrument the law expects — with the clauses it must contain and the section behind every step.

Which contract do I need?

Answer the questions the law asks. Each one names the section it rests on; the result names the instrument, what it must contain and where people fall foul.
  1. 1.What will this person do for the business?

    LRA s 213; s 198; Companies Act s 66; Skills Development Act s 17

    The law routes on what actually happens, not on the heading of the document.

This tool applies the statutory tests to the facts you enter and points to a starting position. It is general guidance, not advice on your facts, and it does not create an attorney–client relationship.

Written by

Martin Kotze

Attorney, Conveyancer & Notary Public

Last reviewed:

Quick answer

How the routing works

The first question is what the person will actually do, because the Act treats an ongoing role, a supplied worker, a director, a learner and a household worker under different provisions. The second is pay against the earnings threshold, because the presumption of employment and the three-month rules in sections 198A to 198C apply only at or below it. The third is duration, and if the term is fixed, the fourth is why — the nine reasons the Act lists, or none. Hours decide whether the part-time and short-hours rules attach. Two riders — a foreign national, and access to confidential information — attach to any result.

Source — the actual words

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.

Labour Relations Act 66 of 1995, s 198B(3)Read it on Law Library

Figures last reviewed 9 September 2026.

The facts that decide it

The statutory facts and the contract each routes to
IfThenProvision
An ongoing role, no end datePermanent employment contractBCEA s 29
Below the threshold, fixed term over three months, a listed reason in writingFixed-term contractLRA s 198B(3)–(6)
Below the threshold, fixed term over three months, no reason, 10+ employeesDeemed permanentLRA s 198B(5)
Above the threshold, fixed termFixed-term contract; watch expectation of renewalLRA ss 198B(2)(a), 186(1)(b)
Fewer than 24 hours a monthShort-hours contract; most of the BCEA offBCEA ss 6(1)(c), 19(1), 28(1)
Supplied by a broker, below the threshold, over three monthsClient is the sole employerLRA s 198A(3)(b)
Registered learnershipLearnership agreement + employment contractSDA ss 17–18
Work experience, no registered programmePaid fixed term with the s 198B(4)(c) reasonNMWA s 3(2); LRA s 198B(4)(c)
A board appointmentService agreement in two capacitiesCompanies Act ss 66, 76
A private householdDomestic worker contractSectoral Determination 7
A defined result on the person’s own accountContractor agreement — after the status testLRA s 200A

What the tool cannot see

A bargaining council agreement extended to your sector, a sectoral determination or a collective agreement can permit fixed terms the Act would otherwise deem permanent (s 198B(2)(c)), set higher minimums, or change notice and leave. Nor can the tool judge whether a stated reason is true on your facts. Where either matters, the result is a starting point for advice, not the end of it.

Questions about the selector

  • Because the earnings threshold is the switch. At or below R269 600,90 a year the presumption of employment, the three-month rules and the BCEA hours rules all apply; above it they do not. See the earnings threshold.

  • No. It applies the statutory routing rules to the facts you enter and gives a starting position with the section behind each step. A bargaining council agreement, a sectoral determination or a collective agreement can change the answer, and the tool cannot see those.

  • Each result links to the matching fixed-fee drafting and 24-hour review services and to the guide that explains the instrument. The firm drafts to the facts rather than handing out templates.

  • Switch the toggle at the top. The result then explains what you are entitled to and where to take it — the CCMA can give an advisory award on whether you are an employee if you earn at or below the threshold (LRA s 200A(3)).

For the businesses we act for

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Why you can trust this: Martin Kotze has been an admitted Attorney of the High Court of South Africa, registered Conveyancer, and Notary Public since 2014, practising from Pretoria. The firm is regulated by the Legal Practice Council under firm registration 17444.

This guide is general information, not legal advice for your specific matter.

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Martin Kotze drafts and reviews employment, fixed-term, contractor and consultancy agreements, restraints and workplace policies at fixed fees, and advises on the status of an engagement before it becomes a dispute. General guidance on this page is not a substitute for advice on your facts.