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There are four types of employment contracts the BCEA recognises. Make sure you use the right one...

by , 20 July 2015
I'm sure you know by now that you must give all your employees employment contracts when they start work for you.

And, this legal requirement comes with hefty penalties if you don't comply.

But the question we usually get from our readers is: 'How I do know if I'm using the right contract'?

Well, there are only four types of employment contracts the BCEA recognises. Keep reading to find out how you can ensure you use the right one for your employees...


***Recommended***

Be warned! The Labour Relations Amendment Act changes the way you treat fixed-term and temporary employees!
 
If you use fixed–term contracts in your workplace, you need to make sure they're in line with the new Labour Relations Amendment Act.
 
If you don't know how to implement and manage fixed-term and temporary contracts you could land up with an unfair labour practice case on your hands!

Click here to disover more...

 
***
 
Make sure you use the right contract for each employee

These are the four different types of employment contracts you can use:

1. Permanent employment contracts
These are indefinite contracts you enter into with your employees. It goes on until either you or your employee gives notice to terminate the working relationship.

This is a common employment contract you draw up, and it comes with company benefits.

2. Temporary employment contracts
Temporary contracts are for workers you employ for a short period. The difference with this contract is that there's no intention of long-term employment.

Staff you get from temporary employment service providers (TES or labour brokers) won't get an employment contract from you. The labour broker, as the employer, will draw up this contract with the employee.

For example, you employ Zodwa from a labour broker to work for 12 months only.

Keep reading to see the last two contracts...

 
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Last two types of employment contracts you can use...

3. Fixed-term employment contracts
These are contracts for employees you employ for a specific time or period. For example, from 1 March 2015 to 31 May 2015.

During this fixed-term contract, the person is your employee. As soon as there's an employment relationship, you both have certain rights and obligations. And you must still comply with all legal labour law requirements.

Remember, the new LRA amendment deems it illegal to employ staff on fixed-term contracts for more than three months. If you do, you must be able to justify your reason.

4. Fixed event employment contracts
These are contracts for employees you employ for a specific event only. For example, from 1 March 2015 until a new building is complete.

Example:
You run a welding business. You need to employ additional welders to complete a big project for new fencing. You employ extra staff on a fixed event contract that says employment will end when the fencing for that project is complete.

There you have it, now you can make sure you use the right contract for each employee. For more information on how the LRA amendments affect your employment contracts, turn to chapter E01: Employment contracts of your Practical Guide to Human Resources Management. If you don't have a copy yet, you can get it here.

P.S. Seats at the Employment Equity Workshop are filling up really fast! Don't miss this opportunity - it's the last Employment Equity Workshop for 2015. Click here to find out more.

 


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