An employment contract is a legal agreement that specifies the rights and responsibilities of employers and employees. Under the Basic Conditions of Employment Act (BCEA), employees must receive a written contract by their first work day.
A well-structured employment contract should include:
Job title and description of role and responsibilities; Start date and duration; Work location; Salary and benefits; Working hours and overtime policies; Leave entitlements; Confidentiality and non-compete clauses for some contracts; Termination clause.
Employers must update contracts whenever labour laws or workplace conditions change.
Employment contracts differ based on job type:
- Permanent contract. Ongoing employment with full benefits.
- Fixed-term contract. Has a set start and end date but may not include full benefits.
- Project-based contract. Ends with the project.
An employment contract can end for various reasons:
- Expiry of the agreed period or completion of the task
- Notice from either party
- Summary termination for a material breach
- Repudiation(to reject the value or authority of the employer or employee)
- Mutual agreement
- Death of either party
- Insolvency of the employer
- Impossibility of performance
- A contract termination must be on valid grounds.
Grounds for termination
- Employee misconduct
- Poor performance or incapacity
- Employer’s operational requirements
Employers must have valid reasons for terminating a contract. Unfair dismissal is illegal.
Before you sign a contract; Read carefully. Negotiate if needed. Ensure it is in writing. Know your rights as a worker:
- A safe and healthy work environment.
- Fair wages and equal pay for equal work.
- Leave as specified in your contract and under the BCEA.
Employers are obliged to:
- Provide a written contract.
- Ensure fair treatment and non-discrimination.
- Adhere to labour laws regarding working conditions and benefits.
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