In terms of the Basic Conditions of Employment Act (BCEA), you must give your employee the terms and conditions of his employment in writing.
According to The Labour Law for Managers Loose Leaf Service, this document can take the form of a letter of employment, or you can create a more formal contract of employment – the form it takes doesn't matter, it's the content that's important. You must do this when your employee starts employment and must retain the document for at least three years after termination of the employment.
A contract of employment should also include a termination clause. In drafting this clause, you must consider the following factors to avoid legal disputes later on:
Drafting a termination clause into your employee's employment contract? Consider these points…
SAMPLE CLAUSE#1: Write this sample clause into your contract:
Notwithstanding any of the notice provisions contained in this contract, the Employer is entitled to terminate your employment without notice on any ground recognised as sufficient in law and equity.
SAMPLE CLAUSE#2: Write this sample clause into your contract:
The grounds on which the Employee may be dismissed without notice include but are not limited to the following:[List the grounds using general descriptions]
The minimum BCEA notice periods are:
Remember, you must explain a notice of termination to your employee in a language he understands.
What about senior managers and directors?
In contracts for senior managers who are also directors, you should include a clause providing for the termination of directorships when their employment ends or where an employee is disqualified from becoming a director or from being involved in the management of a company under the Companies Act.
SAMPLE CLAUSE#3: Write this clause into your directors' contracts:
Upon termination of the Employee's contract of employment, any directorship that the Employee may hold with the company will automatically terminate.