The Fixed-Term Contract That Kept Renewing
Senhora Joana was hired by a logistics company in Luanda on a fixed-term contract of 6 months as a warehouse assistant, starting 1 February 2022. The contract stated the term was justified by 'an increase in seasonal volume.' It was renewed four times, each for 6 months, with the same justification, ending 31 January 2024. Throughout, Joana performed the same permanent warehouse duties as other staff. In January 2024, the company informed her that her contract would not be renewed and that she should not report to work. She had 24 months of continuous service and was paid 250,000 Kz per month. She was never given written notice of non-renewal beyond the verbal statement, and no severance was paid. She now claims the contract became permanent and that she was unlawfully dismissed.
1. Assess whether the successive fixed-term renewals are lawful and whether the contract converted to an open-ended one.
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Legal framework. Fixed-term contracts are exceptional and must be justified by a genuine temporary need (seasonal work, a specific project, replacement of an absent worker). Successive renewals with the same generic justification, where the underlying work is permanent, defeat the purpose of the rule.
Application:
- The stated justification ('seasonal volume') was reused four times over 24 months - this is not a genuine temporary need but a permanent function.
- Joana performed the same permanent duties as other staff.
- The pattern of renewals (four consecutive terms) is the classic indicator of a disguised permanent employment relationship.
Conclusion. The successive renewals are unlawful. The contract is deemed to have converted into an open-ended (permanent) contract. The company cannot rely on the expiry of a fixed term to end the relationship; doing so amounts to a dismissal.
On the dismissal: Absent a lawful ground and proper procedure (written notice, hearing, severance), the termination is unlawful.
2. What is the financial exposure of the company, and what procedural steps should Joana take?
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Financial exposure (illustrative, using 250,000 Kz/month and 24 months' service):
- Reinstatement or compensation for unlawful dismissal, calculated per the labour law scale based on length of service and remuneration.
- Severance / compensation for termination of a permanent contract without just cause.
- Notice pay in lieu of the required written notice.
- Accrued entitlements: unused holiday pay, proportional 13th-month/subsidy where applicable, and any other contractual credits.
- Possible moral damages where the manner of termination caused non-pecuniary harm.
Procedural steps for Joana:
- Gather evidence: the four contracts, payslips, attendance records, witness statements from colleagues doing the same duties, and any record of the verbal non-renewal.
- Pursue the mandatory conciliation stage before the labour court where required.
- File the labour claim seeking: recognition of the permanent contract, declaration of unlawful dismissal, reinstatement or compensation, and all accrued amounts.
- Respect the limitation period for labour claims.
Key proof points: continuity of service, identical duties, and the recycled justification.