Can an employer terminate a Fixed term contract?

Fixed term contracts can be used for various reasons. Employees may be required for a project for a specific time period or a job may only be available for a specific time, for example when an employee is on maternity leave. Fixed term contracts may be terminated at the arrival of a specific point in a project, for instance, an electrician’s contract will terminate if that part of the project is completed.    

Fixed Term contracts come to a natural end at the time stipulated in the contract or at the arrival of a specific event, when the employee's services will terminate. That is the end of the relationship.

These types of contracts may not be terminated for any other reason than material breach or resignation by the employee.  In other words the employee may resign before the date of contract termination, or if the employee is found guilty of misconduct and is fairly dismissed, which will amount to the employee being in breach of the contract.

The employer may not terminate the contract before the time stipulated. The reason for this rule is that parties bind themselves in the contract for a specific time period and the commitment must be honoured.