LEGAL PRINCIPLE: LABOUR LAW – Statutory Flavour – Contract Has Statutory Flavour Only Where Termination Is Governed by Statute
PRINCIPLE STATEMENT
An appointment's character and employee's status are determined by the legal character and contract; where the contract is determinable by parties' agreement, there is no statutory flavour; however, where appointment or determination conditions are governed by enabling statute preconditions, making valid determination predicated on satisfying statutory provisions, this is a contract with statutory flavour.
RATIO DECIDENDI (SOURCE)
"The character of an appointment and status of the employee in respect thereof is determined by the legal character and the contract of the employee. Hence where the contract of appointment is determinable by the agreement of the parties, simply, there is no question of the contract having a statutory flavour… However, where the condition for appointment or determination of the contract is governed by the preconditions of an enabling statute, so that a valid determination of appointment is predicated on satisfying such statutory provisions, this is a contract with a statutory flavour."
EXPLANATION / SCOPE
“Statutory flavour” distinguishes employment governed by statute from ordinary contractual employment. Contracts terminable by parties’ agreement alone lack statutory flavour—they’re purely contractual relationships. Statutory flavour exists where: (1) enabling statute prescribes appointment conditions; (2) statute governs termination procedures; (3) valid termination requires satisfying statutory preconditions. With statutory flavour, employers cannot terminate merely by contractual notice—they must comply with statutory requirements (e.g., board approval, stated cause, inquiry procedures). This creates greater job security and procedural protections. Determining statutory flavour requires examining: the enabling statute creating the position, whether it prescribes appointment/termination procedures, and whether the contract references or incorporates statutory requirements. The distinction is critical as it determines applicable termination procedures and available remedies for wrongful termination.