What should be included in your employment contract in South Africa

Introduction

Starting a business together without planning everything ahead can blur the lines between what role is best for each one of you. To avoid overcrowding one with responsibilities, the best thing to do is sit down and clarify roles and responsibilities. The most important part is to agree on how much every person will be compensated then decide the best way to resolve disagreements in your business. A small business contract is just as similar to a labor contract as it serves as a guide or a manual for both an employer and the employee to ensure fairness.

In this chapter, we will be discussing important things to be included in your employment contract. An employment contract should not look like a rules and regulations book  but rather an agreement about mutual respect, common objectives and how to fairly work together. Elements that should be included in an employment contract is more like consenting on shared values that will set a trustworthy environment and a satisfying partnership.

Description of the job and duties.

The most crucial thing to include in your employment contract is a job description and duties. This part helps you work successfully as an employee will know all the duties and tasks they are responsible for. It’s basically the who, what, when and how of the job.

This will include things like:

• What to do daily, daily targets and goals to meet daily and standards to uphold according to the employer. This part of the contract is not only for the benefit of the employer, it also helps the employee decide from day one if they will be able to handle all the duties assigned for them.
• It also helps with knowing when you are being taken advantage of, being given tasks that are not on your job description. The manager can assign you more than what is on the job description and this is the part where you decide you don’t want to do that or accept it as your way of showing commitment to the company.

Remuneration and the benefits

There can never be an employment contract if there is no part where they include how you will be compensated for your work. This part of the employment contract includes the financial remuneration, that includes your salary or wages you are entitled to receive for your work.

• This serves as a financial agreement on services rendered specifically portraying the exact amount that will be given  and when. Some may call it an agreement of reward for their labor. This part of the employment contract does not only include the paycheck, the job incentives are always included if there is any, mainly associated with the position you are employed in.
• This will include, health coverage, retirement packages, vacation days, bonuses, sometimes stock options for companies that provide them. This agreement will also delineate how often you will be paid either monthly or bi-weekly, how much and what method of payment will be used along with other financial perks. 

Duration and Termination

An employment contract always includes the time span in which the contract remains valid.

• This part specifies the time and period you will be an employer of the company, usually six months, a year or an open ended agreement. The duration and termination agreement also includes various actions and ways that may lead to the employer deciding to terminate the contract.
• An employment contract also explains the period you are supposed to give notice before leaving, who holds the authority to terminate the contract and the condition in which a contract can be terminated. Poor performance at work or overlapping can also be included under conditions that termination can occur.
• This is basically an agreement ensuring that everyone is on the same page and knows what to do and what not to, to work successfully together.

Confidentiality agreements and agreements for non-disclosure (NDA) are essential.

This part is included in an employment contract to ensure a delicate practice of safeguarding confidential information. In some professions, workers have access to confidential information about the company, things like how certain products are made, list of their important clients and their internal operations. This confidentiality clause is for the company to safeguard their business and not to lose any clients, for example, if anyone knew KFC recipe or how certain Portia M products were, then they  wouldn’t have as much sales. A non-disclosure agreement can extend their influence over a duration of employment just to emphasize the responsibility of safeguarding sensitive information even when you are no longer with the company.

Resolution of disputes and determination of governing law.

There is no way to avoid conflicts, the only thing to do is establish how to solve them accordingly. An employment contract usually includes a systematic approach to address and resolve disagreements according to the hierarchy of the company. Basically a manuala of “this is how we run things in our company”. This part guides you on who to notice when you have a complaint, whether you have to tell the manager first, go straight to the Human resource office or jump straight to the director.

There can be situations where the governing law has to be included and this also can be explained in the contract on who holds the right to decide whether the matter is out of their hands or can be solved internally. In parts where the employee is having conflicts with the company then there is a labour law act for South Africans or go to the Commission for Conciliation. Mediation and Arbitration(CCMA). These are the right organizations to solve work disputes legally or you can opt for using your own lawyer or attorney to solve work disputes.

Conclusion

An employment contract should not be taken as the company imposing their rules and regulations on you or chaining you down to the company. If you are happy with the contract it can bring a sense of comfort and security, also cementing a transparent workframe for both the employer and the employees. An employment contract is not only one sided, you can sit down with the employer and discuss things that you are not happy with, this on it’s own will bring a collaborative and productive working environment. An employment contract is more like a promise to both the employer and the employee on how to work smoothly together for both parties’ success.