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Include these three remuneration and benefits clauses in your employee's contract

by , 30 May 2013
Remuneration and benefits can be tricky and difficulties often arise when you don't clearly spell out terms of employment for your employee. 'Don't let the final ink dry on your employment contracts before you're completely certain you know what clauses to include to protect yourself and your employees,' warns The Labour Law for Managers Loose Leaf Service. Here are the three types of clauses you must include in your contract when it comes to remuneration and benefits.

According to the Basic Conditions of Employment Act (BCEA), you must give your employee written particulars about his employment.

In addition, when it comes to remuneration and benefits, the BCEA says there are certain clauses you must include in your employee's contract.

Do you know what these are?

Three vital clauses for your company's contract of employment

Clause # 1: What your employee will be paid

Your contract must include a clause that sets out what your employee will be paid for the work he does. This can be done by specifying the employee's actual wage or by showing how his wages will be calculated using the rate and method used to calculate his wages.

Here's a sample clause as outlined by The Labour Law for Managers Loose Leaf Service.
The employee will be paid R20 000 per month, subject to deductions that are required by law.

Clause # 2: Accommodation and food

Where you provide your employee with accommodation and food as part of his remuneration, this constitutes payment in kind. As a result, 'the BCEA needs you to give your employee written particulars about these and to give a value for them,' says the Loose Leaf.

Sample clause: As part of your employment with us, you will be entitled to the use of the cottage situated at the bottom of the garden at 5 Silver Oak Crescent. The accommodation is valued at R1 000 per month, inclusive of rates and services. You'll also be entitled to your meals every day, to the value of R500 per month.

Clause #3: Reimbursement of out-of-pocket expenses

Circumstances may arise where your employee incurs expenses on behalf of your company. You'll need to reimburse him for this. For example, Farida takes a potential client out to lunch and pays for it herself. She claims the money back from the company.

Sample clause: You may not incur expenses or disburse money on the company's behalf without obtaining written authorisation for those expenses from the company's financial director. If you've obtained authorisation, you'll be reimbursed for any expenses incurred or monies disbursed on the company's behalf, provided you supply us with a voucher/invoice or some other document as proof of the amount spent.

Including these remuneration and benefits clauses in your employee's contracts will ensure you comply with the labour law.



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Comments
1 comments


Jan 2013-06-03 09:03:38

Good morning, Mr. van der Walt

I am forwarding this article to you regarding important remuertion clauses to be included in all our contracts. In particular the accommodation clause for your noting.

Thank you.
Bonita

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