Repeated Renewals Can Mean Permanent Work
Your fixed term contract was renewed again and again, then not renewed.
What the case decided
Ahmad Zahri Mirza Abdul Hamid v AIMS Cyberjaya Sdn Bhd is a Federal Court decision from 2020. It is reported in the Current Law Journal (CLJ) at [2020] 6 CLJ 557, and addresses fixed term contracts that are renewed repeatedly.
The court set out a structured way to test whether such a contract is genuine.
It identified three factors.
- The intention of the parties.
- The employer’s conduct during employment.
- The nature of the business and the work.
Successive renewal with no real break may mean the relationship is truly permanent.1
What the principle means plainly
A contract labelled fixed term is not automatically what it says it is.
If you were renewed year after year doing the same ongoing work, with no genuine gap or change in role, the substance may point to permanent employment.
That matters because letting a genuinely permanent role lapse at contract end can amount to a dismissal, not a natural expiry.
What it means for a worker
Look back at the number of renewals, whether the work was continuous, and whether your role changed at each renewal.
Evidence of ongoing, unbroken duties across renewals supports an argument that the fixed term label did not reflect reality.
Keep copies of every contract and renewal letter you were given, since the pattern across them is what the court examines.
Where this fits in a claim
This case is central to any fixed-term contract dispute and feeds into broader unfair dismissal claims.
Whether your renewals point to permanent work depends on your contracts and how the job was run, so bring them all.
The 60-day window under Section 20 still applies, so check the deadline calculator early.
If your contract was renewed more than once before it ended, an independent employment lawyer can review the pattern and act on a claim if you have grounds.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
What did Ahmad Zahri v AIMS Cyberjaya decide?
The Federal Court set three factors for a genuine fixed term contract: the intention of the parties, the employer's conduct during employment, and the nature of the business and the work. Repeated renewal with no real break may mean the role is truly permanent.
My contract was renewed again and again and then not renewed, can I claim?
Possibly, if the pattern of renewals and how the role was actually run suggest the relationship was really permanent. Letting such a contract lapse can then be treated as a dismissal without just cause.
Does the title on my contract decide the outcome?
No, the label on the document is only one part of the picture. The court looks at the real intention, conduct and nature of the work over time.
Sources
- Three factors decide whether a fixed term contract is genuine: the intention of the parties, the employer's conduct during employment, and the nature of the business and the work, and successive renewal with no real break may mean the relationship is truly permanent. Lexology, genuine fixed term employment
Keep reading
If your contract was renewed more than once before it ended, an independent employment lawyer can review the pattern and act on a claim if you have grounds.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.