CONTINUED PAYMENT OF SALARY AFTER EXPIRY OF CONTRACT TERM NOT PROOF OF SUBSISTENCE/RENEWAL OF A FIXED TERM CONTRACT: A CASE REVIEW OF ELIZABETH NABATANZI LUGUDDE KATWE V ATTORNEY GENERAL (CIVIL APPEAL NO. 53 OF 2013)
Introduction A fixed term contract is an agreement between an employer and an employee that specifies the duration and terms of the employment, usually for a specific project, task, or period . At the end of the contract period, the contract automatically terminates. According to Section 65(1) (b) of the Employment Act, a fixed term contract automatically terminates with the expiry of the specified period or the completion of the specified task unless it is renewed within a period of one week from the date of expiry on the same terms or terms not less favourable . The above provision of the law connotes an express communication in the event that a fixed term contract is to be renewed. This blog sheds light on the legal position that continued earning of a salary after the date of expiry of a contract does not imply continuity or renewal of the contract. Brief Facts The Appellant was appointed as a Special Presidential Assistant by a letter dated 19 th ...