Let's start with the great news:
Most companies don’t need convoluted, 20-page employment contracts. There are a few non-negotiables you really should include, but beyond that, you can draft the contract however you’d like.
A lekker employment contract will always include the non-negotiables, but will also include as much information as is necessary to help your new hires feel confident in what is expected of them, what they’ll be getting out of their employment and what they can do if the working relationship goes sideways.
And for the love of all involved, please drop the legalese*. The easier the contract is to understand, the better it is for everyone.
*Even if your industry requires certain phrases or language for legal purposes, you can create a glossary at the start of your contract to clarify the definitions, then proceed in normal, understandable human language.
A note on industry-specific regulations:
There are many important industry-specific regulations and policies that your new hires might need to know, so please make sure you mention anything critical to your employees’ work environment. We can’t go into more detail here because of how complex this can get, but if you want to ensure that the employment contract you’re drafting or updating is airtight, book your free consultation with us and we'll ensure your contracts are rock-solid.
The non-negotiables
The only things that legally have to be present in an employment contract are the fact that the employee will be
rendering a service,
as an employee of the employer,
in exchange for monies.
However, the rest of the non-negotiables really should be included in every contract because you’re a lekker person and you understand how important it is that everyone knows what’s going on.
Who are the parties involved?
It’s important to properly identify who’s who.
Employer: Company name, registration number, address and contact details.
Employee: Full names and surname, ID number, address and contact details.
What is their new job title?
Describe the title your new hire will be putting on their business cards and bumper stickers.
If you’re planning on using an unconventional title like “Chief Happiness Engineer”, make sure you clearly explain what the role entails to avoid confusion.
What are their responsibilities?
List the general responsibilities of the employee.
Where will they be working?
These days, it is important to specify whether the job is remote, hybrid or on-site:
If it is on-site, specify the physical address of the office;
If it is hybrid, clarify your expectations regarding days at the office, expected availability on work-from-home days, and any related requirements or expectations your company has;
If it is remote, clarify their expected availability and procedure for time-tracking, work feedback and so on.
What hours will they be keeping?
Clarify the hours your employee is expected to be present and working.
If it is a remote or hybrid position, you should also specify here what your expectations are regarding flexi-time (if your company offers it).
How much will they earn?
What will the employee’s base salary be?
What will be deducted from their base salary? Examples include PAYE, UIF and pension.
When will the employee’s salary be paid?
Into which account should the salary be paid?
If you include paid overtime or any sort of performance benefits, this would be a good place to mention them.
The important dates
The start date of the contract.
The duration of the probation period, if any.
The end date of the contract, if any. This is only applicable in the case of fixed-term contracts.
Things went sideways SO FAST
How can the employment contract be ended?
Also include any disciplinary steps and processes here, including who the employee has recourse to in case of a dispute.
On national legal employment contract provisions:
This is important enough that we're going to pop it in a blockquote for your attention:
Even if certain things aren't specifically included in your employment contract, your employee may still be legally entitled to them.
For example, you might not want to give your employees any sort of leave because you’re a cold industrialist who values profit over all else. However, South African labour law definitively states the conditions and minimum durations of leave (paid, sick, maternity, compassionate etc.) all employees are entitled to.
To follow the example above, if your employee wants to take leave at the end of the year and you smugly point to the clause in their contract where they forfeit any leave at your whim, they can smugly head on over to the nearest CCMA and successfully make life very uncomfortable for you.
The "creating more clarity" stuff
Beyond the non-negotiables, there is a lot more you can include if it is relevant, such as:
Performance evaluations
Retirement age
Pension fund and medical aid benefits
Confidentiality, non-disclosure and protection of intellectual property
Non-competition and restraint of trade clauses.
Finally, remember to include any details specific to the industry and job. Think about things that an employee absolutely must or must not do. For example:
A manager of a mine might be required to wear steel-capped boots, while the manager of a waterpark could probably wear whatever footwear they’d like.
If a long-haul truck driver is arrested for drunk driving, they must inform their employer of what happened, and if convicted, they could lose their job. The same is probably not true for a barista.
At the end of the day, any employment contract needs to achieve the following:
Be a legally binding agreement
Protect both parties involved
Effectively communicate what is expected of both parties.
If you achieve the above with your employment contract, job done. Happy hiring 🙌
Are you struggling to draft new employment contracts or update your old, out-of-date pre-COVID ones? Click the button below to book a free consultation with us — we'd love to help you create watertight contracts that delight you and your employees.