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Live by these three rules when finalising your employee's contract of employment

by , 30 May 2014
Your recruitment process isn't complete if you haven't finalised your employee's contract of employment.

You must pay attention to this crucial step because one wrong move could open the door to all sorts of labour disputes.

So make sure you follow these three important rules when you finalise your employee's contract of employment.

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The critical clauses you must include in your new hire's employment contract

You contract of employment is a vital document! You must ensure you develop it along the legal requirements. There are 16 clauses you have to include. And we've included the 12 others that will protect you as an employer. Cover all your bases when it comes to a new employee's contract.

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If you don't follow these rules when you finalise your employee's contract of employment, you'll face legal disputes
 

#1: Decide if the person will be an employee or an independent contractor

When you've determined what the person will be, draw up the appropriate contract.

Remember that in terms of labour law, the roles of an employee and an independent contractor are different. That's why it's crucial you make it clear what capacity you're hiring the person in.

#2: Only enter into a fixed-term employment contract when it's necessary

The Labour Law for Managers Loose Leaf Service says you must only enter into a fixed-term employment contract when you need the person to complete a specific task or if the job is only available for a specific period.

You mustn't use a fixed-term contract as a form of probation or to avoid your obligations in terms of the Labour Relations Act (LRA). If you cross this line, you'll pay dearly.

There's one more crucial rule you must stick to when you finalise your employee's contract of employment.

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#3: Regardless of their level of seniority, don't use one standard contract of employment

The reason?

Many of the provisions of the Basic Conditions of Employment Act (BCEA) that regulate working hours only apply to employees who earn below a certain amount.

And additional clauses like a performance bonus clause, a confidentiality and protection of intellectual property clause and a private dispute resolution clause may be more relevant in a senior employee's contract of employment. This means you have to tailor each contract according to the position. It's not a one size fits all contract.

There you have it. Make sure you follow these rules when you finalise your employee's contract of employment. It's the only way to draft water tight contracts.



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