Employment Contracts Standard Clauses

An employment contract must contain all the information as prescribed in the Basic Conditions of Employment Act (BCEA). A standard employment contract should also contain at least the following clauses:

1. The employers full name and address it is advisable to also record the company’s registration number if applicable.

2. The employees full names, identity number and contact details. Should there be a dispute between the employer and the employee, then the employer will know where to find the employee.

i. Employment date and the nature of the employment i.e. is the employee a permanent employee or is the employee appointed for a fixed period of time.

ii. The place of work must be inserted, especially if an employer has several offices.

Employment Contracts Standard Clauses

iii. Decide whether a probation clause will be suitable for the position. Employers very often appoint employees due to the urgency for them to fill a iv. A probation clause can very well be a free get out of jail card for the employer who is not convinced of the employees skills or suitability for the position.

3. List the duties of the employee employees need to know what is expected of them in the workplace.

4. The working hours of the employee should be listed and you should read the provisions of the BCEA as some employees are excluded from the working time system and these employees include the following people:

Senior Managers;

Sales people who travel to customers and who regulate their own working hours; Employees who work for less than 24 hours a month; Employees who earn more than a certain amount of money (as determined by the Minister of Labour).

5. The compensation of the employee. You should then also consider whether the employee will be paid in terms of the total cost to company principle or based on a salary plus benefits.

Incorporate into your employment contracts the right to deduct any amounts that you must pay in terms of legislation, i.e. UIF and PAYE.

You may also add whether or not employees are entitled to bonuses and if so how they will be calculated or whether any bonus is a discretionary bonus.

6. Make provision for leave in the contract and deal with annual, sick, family responsibility and maternity leave. Make sure that you comply with the terms of the BCEA.

7. Consider inserting a restraint of trade and or a confidentiality clause into the employment contract for employees dealing with sensitive information. This is a very sensitive area of law and it is advisable to consult with a specialist to assist you with the drafting thereof as standard restraint of trade agreements are not a good idea.

8. Deal with the termination of the contract in this document and be aware of the minimum BCEA notice periods.

9. Include a clause dealing with The Regulation of Interception of Communication and the Provision of Communication Related Information Act. This will enable employers to intercept communications by employees with their consent.

10. The employee should also confirm in this contract that the information supplied is complete, true and correct.

There is obviously a magnitude of information that can be inserted into a contract of employment. Make sure that the wording throughout the contract is consistent and keep the language as plain as possible.

Martin Vermaak

Practising Attorney