Before one can outline the legal requirements of an employment contract, firstly we need to provide a definition of an employment contract.
An employment contract can be defined as a contract between an employer and employee where an employee offers his/her services in exchange for remuneration for a period (fixed, permanent) and under the authority of the employer.
Based on the definition of an employment contract, we can find its legal requirements both from the common law (law of contract) and statutory law (labour law).
In terms of the common law or law of contract, for a party to enter a contract, it must be done so voluntarily, and that contract must not be illegal.
In terms of labour law, contracts are governed by the Basic Conditions of Employment Act (BCEA) and the Labour Relations Act (LRA). In terms thereof the legal requirements are (section 29 BCEA):
The employer must supply an employee when the employee commences employment, with the following particulars in writing-
- Full names and address of employer
- Full names and job title of employee
- Working hours
- Remuneration
- Deductions from remuneration
- Leave entitlements
- Probation period
- Notice period required to terminate employment
- Start date of contract
- Duration of employment
- Confidentiality agreements
- Internet, email, company resources usage policies
- Any clauses the employer may want in the contract
Employers are required to keep record of signed contracts for up to a period of 3 years after termination of employment.
Employment contracts should be compliant with Labour Laws.
Contact ZA Wit at [email protected] or on 012 004 1549 for guidance and assistance regarding drafting, reviewing and contesting of employment contracts in South Africa.
