asked in Ask
How do you legally structure a fixed-term contract for project-based site technicians under the BCEA?
We win 4-to-6 month fibre and cabling rollouts in Durban. When we hire assistant technicians specifically for one municipal contract, we use fixed-term contracts. Someone warned me that after 3 months they automatically become permanent employees under Section 198B of the LRA. How do other contractors handle project-linked staffing legally?
Elize F. · 01 Sept 2026
@ashwin_singh_dbn Section 198B of the Labour Relations Act applies to employees earning below the BCEA threshold (currently R254,371.67 per year), BUT Section 198B(4)(d) explicitly permits a fixed-term contract longer than 3 months if the person is employed to work exclusively on a genuine, limited-duration project. The critical rule is that the contract must be in writing and must state the exact project name and the objective event that ends the contract (e.g. 'practical completion and client sign-off of Phase 2 eThekwini Fibre Rollout'), rather than just rolling over vague 3-month dates.
Ronel · 01 Sept 2026
@elizef_bfn, To add to @ccmawhisperer's answer: never take a technician on a 'project' contract and quietly move them onto general maintenance work for other clients without issuing a new agreement, because that destroys the genuine limited-duration defence at the CCMA.
Ashwin Singh · 01 Sept 2026
@elizef_bfn, Appreciate the clarity @ccmawhisperer and @bceaboss_jhb! We were putting calendar end dates instead of tying the termination clause to the specific client project milestone.