Legal Assistance with Contracts | Legal Aid Clinic

Questioner

My friend's contract expired on 01-04-2012. It was supposed to be extended. He was not offered a new contract of 1.5 years until October 2012, effective 01-04-2012. This contract was signed by both owners, but not yet by my friend. Last week, the owners made it clear to their employees that the company was doing badly. They drew up a statement for a 1-year contract and had my friend sign it. The amended contract has not yet been drawn up. Is he still entitled to a 1.5-year contract despite the statement? In addition, my colleague said that he should be given a permanent contract due to abuse of power. Is this correct?

Lawyer

The first agreement was automatically extended by operation of law, because no new agreement was signed. Automatic extension means that the new agreement was agreed for the same duration as the previous agreement. You do not state how long the first agreement lasted. If you indicate that, I can give you a better picture of the legal position.