You have been on rolling 3-month contracts doing the same work as permanent staff, with no benefits, and now you feel threatened for asking. That is common in shops from Butterworth to East London and it is stressful. You do have rights.
What is a fixed-term contract and how is it different from permanent?
Fixed-term ends on a date, event or when a project ends. Example: “30 November 2026”, “when maternity leave ends”, or “when the Komani build finishes”.
Permanent has no end date. It ends only if you resign or are fairly dismissed or retrenched.
BCEA (Basic Conditions of Employment Act) and LRA (Labour Relations Act) cover you on fixed-term. You still get minimum wage, leave and UIF (Unemployment Insurance Fund). If your letter says contract, temporary or limited duration in Cathcart or Hogsback, it is fixed-term.
Does Section 198B protect you if you earn below the threshold?
Section 198B of the LRA protects lower earners.
From 1 May 2026 threshold is R269,600.90 per year, about R22,466.74 per month. That is gross before deductions.
You are covered if you earn below that and have been on fixed-term with same employer longer than 3 months. If you earn above it, BCEA and contract still apply, but Section 198B rules do not apply automatically. Many workers in Mthatha and Makhanda earn below this.
When does your employer need a proper reason to keep you on contract?
If you are below R269,600.90 and beyond 3 months, employer must have justifiable reason.
Justifiable: replacing someone on maternity or sick leave, real project with clear end, seasonal work like extra Shoprite staff in December, limited donor funding for 6 months, post that only becomes permanent if business grows.
Not justifiable: testing performance. They must use probation in a permanent contract. Rolling contracts just to test you is not allowed. See how seasonal hiring should work in our retail jobs guide.
How do renewals work and when can you challenge them?
Law does not set one maximum number of renewals. It looks at reason.
Repeated renewal with no valid reason can be challenged at CCMA (Commission for Conciliation, Mediation and Arbitration). Four 3-month contracts doing same till work in Gqeberha with no project reason looks unfair.
Keep every contract, even photos. Keep rosters, payslips and WhatsApps promising renewal. Even 2-day break counts if you return to same job.
Do you have the right to equal pay and benefits?
Yes, if you earn below R269,600.90 and do same or similar work as permanents, you must not be treated less favourably unless there is justifiable reason like seniority.
Less favourable includes lower pay, no bonus or 13th cheque permanents get, no pension, medical aid, training or promotion chance.
You must at least get National Minimum Wage R30.23 per hour from 1 March 2026, about R5,240 for 40-hour week. Same work should mean same rate.
Keep proof. See WhatsApp job application guide.
What about UIF, leave and your last payslip on a fixed-term?
You get UIF on fixed-term. Employer deducts 1% from you and pays 1% up to ceiling R17,712 per month, max R177.12 per side.
BCEA leave:
- Annual: 21 consecutive days per year or 1 day per 17 days worked
- Sick: 6 weeks paid over 36 months if 5 days a week
- Family: 3 days per year if 4+ days a week for same employer over 4 months
At end you must get final payslip with leave payout, IRP5 for SARS (South African Revenue Service), and UI-19 and certificate of service to claim UIF.
What if they promised you permanent but keep renewing your contract?
This is legitimate expectation. Employer makes you expect renewal or permanent then does not deliver.
Examples: manager says “you will be permanent in January”, you had 5 auto-renewals before, advert said “3 months with view to permanent” and you met targets, others in same job in Makhanda made permanent except you.
Keep all contracts, screenshot WhatsApps with dates, keep payslips, write who said what when and who heard it.
Do not resign. If you resign you lose dismissal claim. Refer to CCMA within 30 days of non-renewal. Referral is free in East London, Gqeberha or Mthatha.
What should you check before you sign a new contract?
Check:
- Duration: exact start and end date or end event.
- Renewal wording: “no automatic renewal” makes expectation harder but does not cancel law.
- Notice: 1 week if under 6 months, 2 weeks if 6-12 months, 4 weeks if over 12 months or fixed-term over 3 months below threshold.
- Benefits: salary, hours, overtime, leave, UIF. If “not applicable” while permanents get them, ask why.
- Job description: same as before? Ask why still contract.
- Blanks: never sign with blanks for pay or date.
- Place: if you work Cathcart and Hogsback, it must be written.
Fix your CV if short contracts look messy. See CV mistakes to avoid.
What to do if you feel threatened or treated unfairly?
You have right to ask about contract without punishment.
Write down what was said, by whom, date and time. Keep proof of hours. Ask in writing for justifiable reason if over 3 months and below R269,600.90. Get free advice: CCMA 0861 16 16 16 or Department of Employment and Labour.
If contract ends after promise, do not wait. 30-day CCMA clock starts immediately.
Frequently asked questions
Can my employer keep me on 3-month contracts forever?
No, if you earn below R269,600.90 from 1 May 2026 and worked longer than 3 months without justifiable reason like covering someone, real project or December seasonal cover. Rolling contracts with no reason can be deemed permanent. Keep contracts and go to CCMA within 30 days.
Do I get UIF and leave on a fixed-term contract?
Yes. UIF 1%+1% up to R17,712 per month and annual, sick and family responsibility leave under BCEA if you qualify. At end you must get final payslip, IRP5 for SARS and UI-19 to claim UIF.
My manager promised me permanent on WhatsApp, does that count?
It can help prove legitimate expectation if you did same work as permanents and were renewed many times. Save screenshot with date. Do not resign. If not renewed, refer to CCMA within 30 days. Free.
Next step
Put your last three contracts, latest payslip and any WhatsApp promising permanent in one folder today. If you earn below R22,466.74 per month with no valid reason for rolling contracts, take folder to CCMA within 30 days if contract ends.