PREPARING FOR THE FESTIVE SEASON: FIXED-TERM CONTRACTS & WHAT EMPLOYERS NEED TO KNOW
Written by Janine van Eck
As the festive season approaches, many establishments in South Africa’s Hairdressing, Cosmetology, Beauty and Skincare Industry begin preparing for one of the busiest periods of the year. Appointment books fill up, spa bookings increase, clients make last-minute appointments, and employees may request annual leave to spend time with their families.
For employers, this period presents both an opportunity and a challenge. Increased demand can mean better business, but it can also place pressure on existing staff, service delivery and daily operations.
One way to manage this seasonal increase in demand is by appointing additional employees on fixed-term contracts. These arrangements can provide valuable support during busy periods if employers understand their responsibilities and manage the employment relationship correctly.
A fixed-term contract offers flexibility, but it should never be viewed as a way to avoid the responsibilities that come with employing staff.
Why Fixed-Term Contracts Can Be Useful During the Festive Season
Consider an establishment whose appointment book is usually manageable throughout the year. During November and December, however, clients begin booking hair treatments, colour services, manicures, pedicures, facials and other beauty treatments well in advance. The existing team is working at full capacity, and additional assistance is needed to accommodate the increased demand.
Alternatively, a spa may need temporary assistance while one of its therapists is on annual leave, or a beauty clinic may require additional reception support to manage an increase in appointments and client enquiries.
In these circumstances, appointing a temporary employee for a clearly defined period may be a practical solution.
Fixed-term contracts can help employers to:
Manage a temporary increase in client bookings and service demand.
Provide cover for employees who are temporarily absent.
Maintain service standards without placing unnecessary pressure on existing staff.
Reduce waiting times and improve the client experience.
Plan staffing requirements around a specific project or period of increased activity.
However, employers must distinguish between a genuine temporary staffing requirement and a permanent position that is simply being filled through repeated short-term contracts.
The purpose of a fixed-term arrangement must be genuine and supported by the circumstances of the establishment.
What Is a Fixed-Term Contract?
A fixed-term contract is an employment agreement that ends on a specified date, when a particular event occurs, or when an agreed task or project has been completed.
For example, an establishment may appoint an additional nail technician from 1 November 2026 until 15 January 2027 to assist with a genuine seasonal increase in appointments. The agreement should clearly explain the temporary nature of the appointment and specify the agreed duration.
Another employer may appoint a temporary receptionist to cover an employee’s absence, with the contract linked to the agreed period of replacement.
It is important to remember that the title of the agreement does not determine whether the arrangement is legally compliant. Calling someone a temporary employee or issuing a contract with an end date does not automatically make the appointment lawful.
Employers must consider the Labour Relations Act (LRA), the Basic Conditions of Employment Act (BCEA), and the applicable Main Collective Agreement of the National Bargaining Council for the Hairdressing, Cosmetology, Beauty and Skincare Industry (HCSBC).
Understanding the Three-Month Rule
Section 198B of the LRA regulates certain fixed-term contracts for employees earning below the prescribed earnings threshold.
Where this section applies, an employer may generally employ an employee on a fixed-term contract, or successive fixed-term contracts, for longer than three months only where the work is genuinely of limited or definite duration or another justifiable reason exists.
A temporary increase in the volume of work that is not expected to continue beyond 12 months is one of the reasons recognised by the legislation. Seasonal work is also recognised as a possible justification.
This can be relevant to establishments experiencing a genuine seasonal increase in demand. However, employers should not assume that every appointment made during November and December automatically qualifies. The circumstances must support the reason for the fixed term.
Where section 198B applies, an offer of fixed-term employment exceeding three months, as well as any renewal or extension, must be in writing and state the reason for the fixed-term arrangement. If the statutory requirements are not met, the employment may be deemed to be of indefinite duration.
Section 198B also contains exclusions, including certain smaller employers, employees earning above the prescribed threshold and fixed-term contracts permitted by a statute, sectoral determination or collective agreement. Employers should establish whether the section applies to their particular circumstances and whether the relevant contract falls within an applicable exclusion, rather than assuming that the three-month rule applies identically to every employer and employee.
The important lesson is that a fixed-term contract must have a sound basis. Employers should be able to explain why the appointment is temporary and retain supporting records.
Putting the Agreement in Writing
During a busy trading period, it can be tempting to appoint someone quickly and agree on the details verbally. An employer may believe that a short conversation confirming the employee’s start and end dates is sufficient.
Unfortunately, unclear arrangements can create unnecessary disputes.
Before the employee starts work, employers should prepare a written contract setting out the agreed terms and conditions. This should include, where applicable:
The employee’s full details and job title.
The commencement date and agreed termination date, or the event that will bring the contract to an end.
The reason for the temporary appointment.
Remuneration, including any applicable commission arrangements.
Working hours, rest periods and overtime arrangements.
Applicable leave provisions and public holiday arrangements.
The employee’s duties and reporting responsibilities.
The agreement should be explained to the employee, and both parties should understand what has been agreed.
Employers should also avoid using a fixed-term contract simply to assess whether a new employee is suitable for a permanent position. Probation and fixed-term employment serve different purposes and should not be confused.
Temporary Employees Still Have Rights
A common misconception is that temporary employees have fewer employment rights because they are only employed for a short period.
This is not correct. The duration of employment does not remove an employee’s applicable protections under South African labour legislation or the industry’s collective agreement.
Employers must apply the relevant requirements concerning remuneration, working hours, overtime, leave, public holidays, occupational health and safety, and applicable industry benefits and contributions.
For example, an additional beauty therapist employed for six weeks cannot simply be expected to work excessive hours because the establishment is fully booked. Working time and overtime must still be managed in accordance with the applicable legal requirements.
Similarly, an employer should not assume that a temporary employee is automatically excluded from applicable industry registration requirements or benefits.
The HCSBC Main Collective Agreement contains specific provisions relating to temporary, part-time and casual employees. Employers should check the applicable provisions and ensure that the correct employment and registration procedures are followed.
Section 198B also provides for less favourable treatment to be avoided in specified circumstances and requires equal access to opportunities to apply for vacancies. Employers should consider these protections where the section applies.
Do Not Overlook HCSBC Notification and Registration
For employers in our industry, appointing seasonal staff involves more than preparing an employment contract.
Clause 7.1 of the HCSBC Main Collective Agreement requires employers who employ part-time, casual or temporary employees to notify the Council in writing within seven days of employing the individual. Employers must also notify the Council within seven days after that employee’s services are terminated.
Clause 7.2 states that an employee may be regarded as a permanent employee and entitled to the applicable benefits under the Agreement if the employer fails to notify the Council of the appointment.
This is an important administrative responsibility that should not be overlooked during the festive rush.
Employers should ensure that the required employee registration documentation is submitted and that applicable contributions are correctly administered for the period of employment.
A practical approach is to include Council notification and registration on the staffing checklist whenever a temporary employee is appointed. The same checklist should include a reminder to notify the Council when the employment ends.
Keeping these records up to date helps employers demonstrate compliance and reduces the risk of avoidable disputes or financial consequences.
What Happens When the Contract Reaches Its End Date?
A fixed-term contract should not simply be left unattended until the final day.
Employers should diarise the termination date and review their staffing requirements before the agreement expires. If the seasonal workload is decreasing and the temporary position is no longer required, the employer should communicate the agreed end date clearly and ensure that the necessary administrative steps are completed.
If the employee is required for longer, the employer should assess the circumstances before extending or renewing the agreement. Where the relevant legislation applies, the employer must ensure that there is a valid justification for the extended period and that the required written agreement is in place.
Employers should also be cautious about allowing employees to continue working after the contract has expired without clarifying their employment status. Continued employment may create uncertainty about whether the agreement has been renewed or whether the employment relationship has changed.
Furthermore, repeated renewals or promises of future employment may create a reasonable expectation of renewal or continued employment in certain circumstances. Under section 186(1)(b) of the LRA, the non-renewal of a fixed-term contract may constitute a dismissal where the employee reasonably expected renewal on the same or similar terms, or reasonably expected to be retained indefinitely.
The outcome depends on the circumstances, including the employer’s conduct and the representations made to the employee. Employers should therefore avoid making promises they cannot honour and should communicate staffing decisions honestly and consistently.
Plan Ahead, Not Under Pressure
The festive season should be a time when establishments can focus on serving their clients, building customer relationships and making the most of increased demand.
Good workforce planning makes this easier. Employers should assess their expected bookings, identify periods when additional assistance may be required, determine whether existing employees will be on leave, and prepare the necessary documentation before the busiest weeks begin.
It is equally important to brief temporary staff on workplace procedures, client service standards, hygiene requirements, booking systems, and their responsibilities. Temporary employees who receive proper guidance are better equipped to support the existing team and maintain the professional standards expected in our industry.
Most importantly, employers should remember that flexibility and compliance must work together. A fixed-term contract can be an effective staffing solution when it reflects a genuine temporary need, is properly documented, and is managed in accordance with the applicable legislation and collective agreement.
A Final Word to Employers
As we approach the festive season, the message is simple: plan your staffing requirements carefully, document your agreements, and do not overlook your obligations towards temporary employees.
A well-managed fixed-term appointment can help an establishment navigate its busiest period while protecting both the employer and the employee.
By taking the time to get the employment relationship right from the beginning, employers can reduce uncertainty, support their teams and focus on what matters most: delivering quality services to clients.
If you are unsure about the correct employment arrangement or the applicable HCSBC requirements, contact the EOHCB for guidance before making an appointment. Taking the necessary steps early can help prevent avoidable complications later.
