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Monthly renewable contract

Shay
Member
Thu, 07 Sep 2017 09:56:30 AM  (Last updated: Fri, 08 Sep 2017 06:03:40 PM)

Just want to have a confirmation: Is it possible or legal to have a monthly renewable contract for the same employee with the same employer or company?

mdkamil
Contributor
Fri, 08 Sep 2017 06:03:40 PM

It is possible and legal.

But, why is has to be done in such a way? Commonly this is done for fixed-term contract, where the type of job or function is expected to be in short term period. And once the job is done, it is deemed that the function is no longer required.

However, if an employer continue to renew a contract of employment for a particular employee, throughout time it can be challenged that it is not a fixed-term, and the function is required to exist as long as the company is in operations. Thus, continuous renewal of contract can lead to the Law to define that as a permanent job.

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