The essentials of a contract of employment

The essentials of a contract of employment are not only important for your employer, but also for you, as it defines your and your employer’s contractual obligations.

A contract of employment can be very elaborate, but there are essentials that should be found in all contracts of employment, says Michael Opperman from Omni Labour Consultants.

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What must be in the contract?

• The names of the employer and the employee must be prominently displayed to identify who entered into this contract.
• The duration of the contract and contract type. Is it a fixed term contract, a permanent contract or a job specific contract?
• If necessary a probationary period.
• Your job description, as well as the starting date and if it is a fixed term contract, the termination of contract date.
• Your salary, which will include a commission structure if any, as well as bonus payments and incentives.
• Any benefits for you, such as medical aid and pension fund contributions, as well as any obligatory scheme you should belong to if your employer receives a subsidy regarding medical aid or pension contributions.
• Your responsibilities which include but are not limited to working times, lunch times (whether it is an hour or reduced), overtime (compulsory or not).
• Leave, which includes sick leave, family responsibility and other leave, as well as parental leave.
• Any industry standards or statutory obligations to industry standards.
• Company policies or at least a reference to these policies.
• A reference to a code of conduct.
• Special requirements, such as, for example, that you must have your own transport or driver’s licence or complete a regular trade test that may need to be upgraded at the employee’s expense.
• When your employment contract can be terminated, such as dismissal for misconduct, ill health or injury and/or poor work performance, as well as dismissal for operational requirements and if you resign.
• The notice period, preferably the notice periods as set down in the Basic Conditions of Employment Act.
• The address for you and your employer where legal documents can be sent.
• A clause that neither party may alter the agreement without written consent of the other party.

Opperman says it is highly recommended that you, as a prospective employee, ask for the company policies during an interview to ascertain whether you are compatible with them and if you will fit into the ethos of the organisation.

He adds that many employers attempt to enforce a restraint of trade, but it is important to remember that it must be signed at inception of the employment contract and the enforcement terms must be reasonable and practicable for the employee.

Both parties must be identified by their written names and they must sign the contract with two witnesses.

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