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What's the difference between a contract of employment and letter of appointment?

by , 17 October 2016
What's the difference between a contract of employment and letter of appointment?What's the difference between a contract of employment and an appointment letter? Do you know? Take a look below as I explore the differences and why you need to know them...

Dear Reader
 
I recently had coffee with a friend of mine who owns her own business. We got chatting about appointment letters, and there was me rattling on and on about who in the company should or shouldn't have.
 
And suddenly she asked me a very valid question… One that got me thinking…
 
What's the difference between a contract of employment and an appointment letter?
 
Do you know?
 
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The difference between a contract of employment and letter of appointment
 
I'm going to take you through a contract of employment first. Quite simply, it's a legal requirement of the Basic Conditions of Employment Act. This document includes all the factors around:

  1. What the employee's duties are
  2. What the employer offers and provides:
·         Times of work;
·         Overtime;
·         Salary;
·         Bonuses;
·         Annual leave;
·         Sick leave;
·         Medical aid;
·         Pension etc.
  1. The rules for:
·         Termination of employment;
·         Resignation;
·         Retirement.

An appointment letter in terms of the Occupational Health and Safety Act is a legal requirement under certain sections and regulations of the Act. The letter will contain the section or regulation of the Act to which you are being appointed. All of these appointment letters must be in writing.
 
The letter must contain certain information to satisfy the law. It needs to be valid and show you appointed a competent person. 
 
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Why you need to know the difference
 
You need to know the difference, because if you think you've covered your bases by simply giving your employee a contract of employment. You're wrong! There are certain employees who, by law, must have an appointment letter outlining their specific health and safety duties. If you don't comply, the DoL will fine you or even take you to court!
 
So, there you have it. And if you are now panicking at the thought of where to get legal appointment letters, look no further. Simply click here to get your hands on ALL the appointment letters you may need in your business.
 
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