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Now that you've hired Paul, give him a watertight employment contract that contains these three key clauses

by , 31 October 2014
One of the most important steps you must take towards the end of your recruitment process is to give your new hire an employment contract to regulate your relationship.

In terms of section 29 of the Basic Conditions of Employment Act (BCEA), you need to do this no later than the first day your employee starts work.

If you fail to do this, not only could you end up with a huge fine or imprisonment, but you'll find it difficult to take action against your employee if he disobeys any of your policies. He'll simply plead ignorance.

To avoid this fate, give your new employee an employment contract and ensure it includes these three key clauses.

Here are the three clauses you must include in your new employee's employment contract

1. Probation clause
You must use probation to assess your new hire's performance, skills, ability and compatibility.
Be sure to check out this article. It contains four points you need to know about probation periods so you don't break the law.

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2. Working hours clause
The Labour Law for Managers Loose Leaf Service says you must include a clause to clarify what your employee's work hours are and the length of his lunch break.
You must also state the place of work and include in the clause that you have the right to move or transfer your employee to a different factory, branch or region, or even to work outside the country. This can be for operational or other reasons, if the nature of your business requires it.
3. Benefits clause
Clarify the exact benefits you provide in detail in the employment contract.
Include a clause dealing with how much your employee's initial salary or wage will be and when and how you'll make payments.
Don't forget to set out details about benefit contributions by your employee and your company, including how you'll deduct these from his overall package and how the tax treatment works.
These are just some of the key clauses you must include when you give your employee his employment contract. Check out the Labour Law for Managers Loose Leaf Service to discover ten more clauses you must include to ensure you have a watertight employment contact.

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