Understanding Employment Contracts

An employment contract is a basic and vital employment right. According to Section 29 of South Africa's Basic Conditions of Employment Act, an employer is required to provide each and every worker with an accurate understanding of their roles and responsibilities. Consent in the form of agreement to such a contract is required in the form of signatures. It is vitally important that such employment information be recorded in the form of an employment contract.

The employer is to provide such an employment contract and the employee must understand its contents. Employees are required to peruse their employment contract and agree or disagree accordingly. The employee is able to contest information within the letter of appointment to be clarified prior to signing. Once in agreement the employer, employee and witnesses are required to sign the relevant employment contract. Not only does a letter of employment contain information regarding employee duties but company policy as well. It is important to understand every detail documented in the employment contract. Once signing it the employee is obligated by their employment contract and must comply accordingly to the employment terms, conditions and company policies contained therein. Find clarity and understanding of your employment contract by reading Jobs.co.za's guidelines on how to demystify the employment contract.

Basic Employment Information

Basic employment information is required to be recorded in your employment contract. Such information is to include the following;

-          Name of Employer (Company Name)

-          Relevant Department of Employment

-          Address of Employer (Physical Business Address)

-          Employee's Full Name

-          Job Title

Commencement of Employment

There is to be a clear understanding in your employment contract of when your employment term begins. This portion of your letter of appointment will also detail whether you are a permanent, contract or casual (part -time) employee. It will detail;

-          The number of working hours required per week or per month

-          Your daily working hours

-          Lunch break details and when to take them 

Employment Probation Period

An employment contract must document details regarding your employment probation period. A probation period is a new employee's opportunity to prove their worth.  Well, not exactly, a probation period is almost a cooling off period for both employee and employer. Both have the opportunity to assess if they are happy with the employment arrangement. If not both are protected by a clause in the employment contract making for an easy opt out opportunity. This is detailed in the employment contract, along with how long the probation period will be and the date it will end.

Employee Duties and Employer Expectations

The employment contract will include information regarding the employees roles and responsibilities. Here the job title will be clearly stated. Deliverables and employer expectations will be clearly expressed. Employment expectations based on performance may include;

-          Quarterly or monthly targets.

-          Bonus incentives

-          Key Performance Indicators (KPI's) or Key Performance Areas (KPA's)

-          Personal performance targets

Remuneration Package and Payroll Information

A letter of appointment is to detail remuneration and wage packages.

Such payroll information will detail;

-          Cost to company package

-          Yearly or monthly remuneration

-          Employee fringe benefits and company perks

-          Employee Banking details

-          Date of salary pay run

Leave Entitlement Particulars

Details such as annual leave, sick leave, family responsibility and compassionate leave must be documented in the employment contract. Leave particulars may vary from company to company and title to title. Familiarise yourself with the relevant rights that apply to your area of expertise. Leave information should explain;

-          Annual leave (may vary between twelve to twenty days)

-          Sick leave

-          Compassionate leave

-          Family responsibility leave

-          Maternity and paternity leave

-          Study leave (if offered by the company)

Restraint of Trades, Copyright, Trademark and Intellectual Property Protection

Employment contracts may or may not include particulars pertaining to restraints of trade and the protection of company resources and intellectual property. An employer is entitled to enforce such clauses in the interest of protecting specialised areas of expertise and trade secrets.

Termination of Employment and Notice Periods.

Employment contracts clarify the requirements for termination of employment. While this may seem like gloomy information to cover, it is certainly to your advantage. Termination clauses will be clearly stipulated and should document the expectations on both the employer and the employee with regards to enforcing such termination. This information will include;

-          Employment termination requirements

-          Minimum expectations for notice period requirements

-          Additional requirements such as exit interviews and handover procedures

Employment contracts are set in place to protect the employee and the employer alike. Such documents ensure that both parties are on the same page and understand each other's expectations. Having a clear understanding of the detail in your employment contract will prove to work to your advantage when integrating into your new company and team.

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