If you have employed staff without giving them an employment contract, you could face serious jail time. If you manage to avoid this, you are still liable to pay your employee’s entire year’s salary plus costly legal fees!
Section 29 of the Basic Conditions of Employment Act (BCEA) requires you to give your employees, in writing, the terms and conditions of their employment. This document can take the form of a letter of appointment, or a more formal contract of employment. You must get a signed agreement when the employee starts employment and you must retain this document for at least three years after termination of employment.
Four important questions to ask yourself before you even begin to draft a contract of employment?
- What law applies to my employee?
- What about the company’s codes, policies and procedures?
- Which legal entity actually employed the employee?
- Should statutory rights be repeated in employment contracts?
You should contact us immediately if you are not able to answer any of these four questions, to avoid costly and unnecessary legal costs.
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