As at: 20 June 2026
Employment contracts constitute the essential legal framework governing the relationship between employers and employees in South Africa. These contracts delineate the respective rights, duties, and expectations of both parties, ensuring clarity and legal compliance. In accordance with the Basic Conditions of Employment Act (BCEA), the Labour Relations Act (LRA), and pertinent judicial precedents, employment contracts must be carefully drafted and regularly updated to reflect legislative changes and evolving workplace practices. The recent amendments introduced in 2026, alongside significant rulings by the Commission for Conciliation, Mediation and Arbitration (CCMA), underscore the necessity for employers to revise their contract templates and human resource policies to maintain compliance and mitigate legal risks.
- Permanent (Indefinite) Contracts
- Provide ongoing employment until terminated by either party.
- Must now include clear provisions for remote work arrangements where applicable, covering working hours, equipment, and reimbursement of costs.
- Fixed-Term Contracts
- Used for specific projects or limited periods.
- Under the 2026 LRA amendments, fixed-term contracts exceeding 24 months convert to permanent unless objectively justified.
- Employers must provide written reasons for the use and renewal of fixed-term contracts.
- Temporary and Casual Contracts
- Designed for short-term or irregular work.
- Where casual work exceeds 24 hours per month on a regular basis, or temporary contracts extend beyond 3 months without justification, employees may acquire permanent status.
- Part-Time Contracts
- Employees work fewer hours than full-time staff.
- Entitled to pro-rata benefits and protections.
- Remote work entitlements apply equally.
Key Legislative Updates (2026)
- Working Time & Remote Work
- BCEA now regulates remote work explicitly.
- Employers must define core hours, rest periods, and avoid “always-on” clauses.
- Written terms must cover availability, monitoring, and reimbursement of work-from-home expenses.
- Fixed-Term Thresholds
- Contracts longer than 24 months require justification.
- Automatic conversion to permanent employment if unjustified.
- Probation
- Probation periods must be reasonable (generally capped at 6 months).
- Employers must provide structured feedback, training, and evaluation during probation.
- Constructive Dismissal
- CCMA confirmed that unreasonable remote work demands (e.g., excessive monitoring, lack of rest periods) may amount to constructive dismissal.
- Employers must ensure policies respect employee dignity and fairness.
- Probationary Dismissals
- Dismissals during probation require evidence of progressive performance management.
- A single warning without support or training may be procedurally unfair.
- Employers must document coaching and evaluation before termination.
Practical Guidance for Employers
- Update contract templates to include remote work clauses.
- Review fixed-term contracts for compliance with the 24-month threshold.
- Revise probation clauses to include structured evaluation and support.
- Train managers on constructive dismissal risks in remote work contexts.
- Audit casual and temporary arrangements to avoid misclassification.
Employment contracts in South Africa must now reflect the realities of remote work, stricter fixed-term thresholds, and fair probation management. Employers who fail to adapt risk CCMA disputes, reinstatement orders, and reputational harm. A proactive update of contract templates and HR policies is essential for compliance in 2026.
Disclaimer: This practice note is intended for informational purposes only and does not constitute legal advice. Employers and employees should consult qualified legal professionals for advice tailored to their specific circumstances.