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What's the purpose of an employment contract?

by , 09 December 2013
As you know, the Basic Conditions of Employment Act (BCEA) requires you to give your employee a written contract of employment. But what's the purpose of an employment contract? Read on to find out so you can comply with the BCEA.

Anyone who qualifies as an 'employee' must receive an employment contract. This is a requirement of the BCEA.

Here's why an employment contract is important

The Labour Law for Managers Loose Leaf Service explains that an employment contract regulates your relationship with your employee and sets out the following:

  • The terms and conditions of employment that will apply for the duration of his employment
  • What you promise to pay your employee
  • Other benefits and working conditions you'll supply
  • Duties your employee owes to you as his employer
  • When the contract starts
  • When and how it can be terminated by either of you
  • When it can terminate automatically.

Employment contracts can also provide for some things that still need to happen after termination.

Mywage.co.za says that 'if there is no contract, it's not only illegal, but it's extremely difficult to take action if either you or your employee have a grievance, or want to query a situation in the workplace.'

Remember that your employee's employment contract must be up to date.

You must update it when:

  • The law changes
  • You and your employee agree to changes in the terms and conditions
  • Your employee's pay or benefits increase.

Important: Your employee's contract of employment must be clear, concise, and easy to read and understand. It must deal with all the issues relevant to your employment relationship with your employee.

Now that you know the importance of an employment contract, make sure you comply with the BCEA.

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