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fixed term contracts

Ivan Israelstam expresses the opinion that labour laws are restrictive and that although the intention is to help employees, the effect is to increase unemployment.

There are a number of ways that employers attempt to avoid agreeing permanent contracts with employees, for example: the use of fixed term contracts, or contracting with labour brokers to provide workers. Ivan Israelstam suggests that these actions are a reaction to difficulties in the ability of employers to dismiss permanent employees. He quotes cases to illustrate this point. 

An employer may think that by offering an employee a fixed term contract, they will be able to simply terminate the employee at the end of the contract. However, as Ivan Israelstam explains it depends upon the circumstances and company policy and practice. An employer may inadvertently give a temporary employee an expectation of further employment.

Ivan Israelstam

This week Ivan Israelstam makes the case that labour law has become more restrictive upon employers. He explains that those who have used repeated fixed term contracts should no longer do that - only employ on a fixed term contract where there is a genuine short term job. Secondly, using labour brokers - TES or temporary employment services - has also become more restrictive and difficult as a result of the latest labour law amendments.

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