Employment Contracts and what you need to include.

Section 29 of the Basic Conditions of Employment Act provides for certain written particulars of employment to be provided as a minimum, and every employer is legally obliged to provide all employees with these minimum particulars in writing not later than the first day of employment.

This minimum requirement, however, is not sufficient. Employers are well advised to enter into a written Contract of Employment with every employee. Apart from section 29 of the BCEA, there is no legal requirement for the employer to provide a written contract, but by reducing everything to writing there can be no arguments down the line regarding who said what, or what was promised and what was not promised, and so on.

Setting up an employment contract can be daunting.
HR Simplified is here to help with tips on what needs to be included.
The BCEA states that a contract of employment must have the following.

Name and address of the employee
Job title
Job description
Salary
Agreed Deductions from salary
Pension or Provident fund benefits, rules and contributions. The contract should stipulate that contributions are subject to change if this is the case.
Medical Aid benefits, rules and contributions. The contract should include a clause whereby the employee agrees to abide by the requirements of any amendments to the scale of medical aid rates, and also to any amendments to the employee’s or the employer’s contributions, which is normally an annual amendment.
These two clauses should provide for the employee’s signature to be appended to each condition.
Copy of company Disciplinary Code & Procedures. This will include a description of the procedure that the company will follow in the event of disciplinary action being instituted against the employee, as well as a description of the company grievance procedures.
Company Rules and regulations (dress code, standards of behaviour required, and so on. Also rules regarding alcohol on premises and that type of thing.
Company car usage and restrictions.
Company cellphone usage and restrictions
Normal Working hours
Company policy on overtime and compensation therefore
Leave provisions for annual leave, sick leave, family responsibility leave, maternity leave, any other types of leave that the employer provides for such as study leave.
If it is an employee earning above the present earnings threshold, terms of the agreement between employer and employee regarding normal hours and overtime hours, meal breaks and the agreed compensation if any for overtime hours.
Terms and Conditions applicable to bonuses or other incentive schemes paid by the employer.
Terms and Conditions applicable to Performance Reviews.
Terms and Conditions applicable to salary reviews – here it should be expressly mentioned that a “review” is not a guarantee of an increase. The term “review” simply means that the salary will be looked at in terms of the employee’s performance or other criteria that the employer decides on but may not necessarily result in a salary increase. Many employees incorrectly interpret “review” as meaning “guaranteed increase” and it must be made clear to employees that this is not so.
Terms and Conditions applicable to staff loans – does the company provide financial assistance to staff by way of loans? If so, explain the procedure to be followed.
If the company does not provide financial assistance, then state this in the Contract
“This company does not provide financial assistance of any sort to employees for any purpose. Employees seeking such assistance must approach a recognized financial institution for such assistance.”
Internet and e-mail usage policy. This is an extremely important inclusion.
Restraint of Trade Agreement where desirable.
Confidentiality Agreement where desirable.
Conflict of Interest Agreement – this would be to prevent undesirable conflict of interest within the workplace. For example, one rule may be that the company will not employ a relative of an employee in a position that may cause a conflict of interest. An example would be that it is undesirable for the Human Resources Manager to be the husband of a female employee. Or perhaps it would not be desirable to have the Transport Manager’s wife employed as the M.D.’s Secretary or P.A.
A “kickbacks” or “gifts” prohibition clause or limitations on the value of gifts received.

For more info and help in setting up your employee contracts please contact HR Simplified today.

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