Supreme Court held that annual purchase service contracts with a municipality do not constitute a justified reason for successive fixed-term employment contracts.

The Supreme Court dismissed the employer's claim that annual purchase service contracts with a municipality justified successive fixed-term employment contracts under Section 3(2) of Chapter 1 of the Employment Contracts Act. The employer argued these recurring municipal agreements provided a legitimate business reason for renewing contracts with the same employee. The court ruled that such administrative procurement arrangements do not meet the statutory threshold for a justified reason to avoid indefinite employment.