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.