Contract Transition FAQ | Sourceworx
People & Culture
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Contract Transition 2026

Your Questions, Answered

We know that change can feel uncertain, and it is completely natural to have questions. This page is here to walk you through the most common concerns about moving from fixed-term to permanent employment.

Before you read on...

This transition is a positive step forward for Sourceworx and for you. Our goal is to strengthen workforce stability, support long-term growth and make sure every team member feels informed and valued throughout the process. If you cannot find the answer you are looking for here, please do not hesitate to reach out to the HR team directly. We are always happy to talk things through.

Understanding the Change

What are the benefits of being on a permanent contract?

Moving to a permanent contract comes with some really meaningful advantages:

  • Job security – your employment no longer has an expiry date, giving you peace of mind about your future with the company.
  • Access to full company benefits – you will have access to the complete range of benefits available to permanent staff.
  • Better financial planning – with a predictable income, it becomes easier to plan ahead and access credit facilities such as home loans or vehicle finance.
This is a positive step forward. We want you to feel confident and supported as we move through this transition together.

Why is the company changing my contract to a permanent one?

The company is moving employees to permanent contracts to strengthen long-term workforce stability and support our retention strategy. We value the talent and commitment within our team, and this change reflects our desire to invest in our people for the long run. It is about building a stronger, more stable future for everyone at Sourceworx.

Does a permanent contract mean my job is guaranteed?

A permanent contract provides you with significantly stronger job security compared to a fixed-term arrangement. That said, it is important to understand that employment may still be terminated for valid legal reasons, provided that fair procedure is followed in line with South African labour law. This is standard practice across all organisations and should not cause concern. The key difference is that your employment no longer has an end date built into it.

Does this apply to everyone currently on a fixed-term contract?

The intention is to transition the majority of staff into permanent roles. However, a small number of employees may not be eligible for conversion due to legislative restrictions. If this applies to you, the HR team will engage with you directly and confidentially to provide clarity and discuss next steps. Please do not worry ahead of your session; the team will walk you through your individual circumstances.

When will this transition take effect?

The HR department will schedule a company wide meeting with all staff to go through the details, timelines and next steps. Nothing will change without you being fully informed first.

Will I need to sign a new contract?

Yes. Transitioning to permanent employment means a new contract of employment will be issued.  Employees will have schedule a meeting with HR if they would like to discuss the contract in detail.

Your Benefits and Conditions

What will happen if I do not sign up for medical aid?

You will forfeit the benefit

Does this affect my financial planning?

Yes, and in a positive way. Permanent employment improves your financial stability by providing a predictable, ongoing income. This can also improve your creditworthiness, making it easier to apply for things like home loans, vehicle finance or personal credit. Banks and financial institutions tend to view permanent employees more favourably, so this transition could open up new opportunities for you outside of work as well.

Will my salary or benefits change as a result of this transition?

Employees may discuss their remuneration with their managers. It is important to note that under the permanent contract, salary increases remain discretionary and are based on your individual performance as well as the company's overall financial position.

What are the notice periods under the permanent contract?

Notice periods are structured based on your length of service:

  • Six months or less: one week's notice
  • More than six months but less than one year: two weeks' notice
  • More than 12 months: four weeks' notice

This applies both ways, so you and the company are both held to the same terms.

Day-to-Day Impact

Will I be placed on probation again?

No. Your probation was already conducted during your induction period, and you will not be required to go through it again. This transition recognises your existing service and contribution to the company. You can move into your permanent contract with confidence.

Will my working hours or overtime rules change?

No. Your working hours and overtime rules remain exactly the same. There are no changes to your daily schedule or how overtime is managed. Everything you are used to in terms of your day-to-day routine stays in place.

Can I be transferred to a different department or role?

Yes, the contract allows the company to transfer employees between departments or branches, or to assign duties other than those originally hired for. This is standard for permanent employment contracts and reflects the operational needs of the business. Any such changes would be made in a reasonable manner and within a similar scope of work.

What about outside employment?

Under the permanent contract, you may not take on additional employment (directly or indirectly) without the prior written consent of the company. If you currently hold a secondary role or freelance arrangement, it is important to raise this during your consultation so that HR can advise on next steps.

Restraint of Trade and Confidentiality

Does the permanent contract include a restraint of trade?

Yes. The permanent contract includes a 1 year restraint of trade clause that applies after your employment ends. In simple terms, this means that for one year after leaving Sourceworx, you may not work for a direct competitor in the defined territory, solicit the company's clients or recruit fellow Sourceworx employees.

We understand that restraint clauses can feel daunting. The purpose is to protect business interests and client relationships.

What are my confidentiality obligations?

As a permanent employee, you are expected to keep all company trade secrets, technical data, client lists, financial information and business methods confidential. This obligation applies during your employment and after it ends, regardless of the reason for termination. This is standard practice across most organisations and is there to protect both the company and the clients we serve.

The Process

Do I have to accept the permanent contract?

The purpose of the consultation process is to make sure you fully understand the new contract before making a decision. We want this to be a collaborative and transparent process. If you have reservations or concerns, HR will work with you to address them. The goal is a smooth and positive transition for everyone involved.

Who can I speak to if I still have questions?

The HR team is available to support you at any point. Whether you have follow-up questions, need something explained again or just want to talk things through, please reach out. We would rather you ask twice than feel unsure. Your comfort and understanding are our priority.

You are also welcome to submit feedback through the Contract Transition Consultation Feedback form, which is available after your session.

Still have questions?

We are here for you. Reach out to the HR team at any time, or share your experience after your consultation session.

Contact the HR Team Complete the Feedback Form