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Remuneration and benefits: Be sure to include these six clauses in your employee's contract

by , 21 October 2013
Remuneration and benefits can be tricky and difficulties often arise. 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. Here are the six clauses every contract should have...

'The Basic Conditions of Employment Act (BCEA) says you must give your employee written particulars about his employment,' says the Labour Law for Managers Loose Leaf Service.

When it comes to remuneration and benefits, the BCEA says you must give your employee written particulars about the following.

Here are the six clauses to include in employee's contracts when it comes to remuneration and benefits

The Loose Leaf Service recommends you include the following clauses in your contracts when dealing with remuneration and benefits:

Clause #1: Your employee's wage or the rate and method of calculation of wages;

Clause #2: The rate of pay for overtime work;

Clause #3: Any other cash payments your employee is entitled to;

Clause: #4: Any payment in kind your employee is entitled to and the value of that payment in kind;

Clause #5: How frequently you'll pay remuneration; and

Clause #6: Any deductions you'll make from your employee's remuneration.

Keep in mind that you must revise these written particulars whenever your employee's terms and conditions of employment change.

In other words, if your employee receives an increase in his pay or a change in his benefits, you'll need to issue him with a letter confirming this.

Warning: You'll be breaking the law if you employ an employee without giving him details of his employment in writing. If you fail to comply, you could be prosecuted.

So include these clauses in your employee's contract and make them easy to understand so there's no misunderstanding of the remuneration and benefits your employee will receive.

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