26/05/2026
EMPLOYERS , EMPLOYEES AND LABOUR LAWS
TERMINATION OF CONTRACTS.
Good morning family.
What does the law state on termination of contracts of employment?
According to Section 51 (2) Employment Code Act:
"An employer shall not terminate a contract of employment of an employee without a valid reason for the termination connected with the capacity or conduct of the employee or based on the operational requirements of the undertaking".
This basically implies that an employer should not just dismiss any person when they wish to and feel like. A VALID reason should be given to the employee when terminating their employment with the company. For instance,
"We wish to inform you that your contract with ...... company will be terminated on 25/09/2024 due to operational measures the company is taking..."
The law further guides that:
"(3) An employer shall not terminate the contract of employment of an employee for reasons related to an employee's conduct or performance, before the employee is accorded an opportunity to be heard".
So even though the reason is performance oriented, the employer has to accord an employee a chance to be heard. In this regard, the employer has to find measures to try and help the employee improve his/her performance. Where the effort given is not fruitful, the employee should be written to regarding the matter and fired
Additionally, 5 states that "An employer shall bear the burden of proof that the termination of a contract of employment was fair and for a valid reason".