Are you looking for an employment contract template for South Africa that you can use to sign with your employees? It is essential to maintain a written record of the relationship between employers and employees for several reasons. Your employment contracts must comply (and be up-to-date) with the latest laws and best practices.

  • There are international best practices, principles and conventions (global laws). For example, the documents published by organisations like the International Labour Organisation (ILO).
  • There are also local laws and regulations in each country where you operate. In South Africa, these include the Labour Relations Act (LRA), Employment Equity Act (EEA), and Basic Conditions of Employment Act (BCEA), as amended from time to time.

Employment contracts are also an effective way to ensure a positive and fair relationship with your employees. Having a written employment contract with each employee also helps you to avoid misunderstandings and disputes.

At the same time, you don’t want the employment contract to restrict your relationship and your ability to respond to changes in the way your organisation operates, as well as to changes in the economy and the law. The employment contract needs to be flexible. This is why we suggest that you separate the employment contract into different parts. The employment relationship is governed by particulars, terms, rules, policies, procedures and practices. Some are binding, others are non-binding. Employers can change some things unilaterally, while others can only be changed by agreement. Some apply only to one employee, while others apply to all employees. This is why it is essential to group them together and address them in separate documents or sections.

If you are already using an employment contract template, you can verify its legal soundness and up-to-dateness with the latest laws by having us review it.

The purpose of an employment contract template

  • Determine the nature and extent of the employment relationship.
  • Comply with Section 29 of the Basic Conditions of Employment Act.
  • Comply with the Employment Equity Act.
  • Determine when agreement is needed for any changes.
  • Provide a general framework and guidelines to prevent discriminatory practices.
  • Ensure that employees are aware of and understand the expected standards of performance and conduct.
  • Ensure fair and consistent treatment of all employees.
  • Incorporate the principles of fairness.
  • Prevent unfair or unlawful treatment of employees.

Michalsons Employment Contract Template Solution

We recommend at a minimum that you need the following documents to govern the contractual relationship. To comply with the labour and employment legislation, more particularly the Employment Equity Act, we believe it is essential for all organisations to have a set of standard documents that apply uniformly to all persons who either work for, or who do work for them.

The appointment (in the form of a letter of apointment (LOA) or offer) is the essential basis of the employment relationship and contains the particulars that are relevant to each specific individual employee. Once signed, these particulars can only be changed with the agreement of the employee. It should be concise and written in plain, clear language so that it is easy to understand. We find that employees are happier to sign a letter rather than enter into what they perceive as a formal contract. The template includes:

  • Rewards by way of remuneration and benefits.
  • Occupational levels and job grades within the enterprise (job description).

There is one template for new employees and another for existing employees. The one for all existing employees informs them of the changes, allowing you to achieve a situation where the Personnel Handbook (discussed below) applies to everyone, and only the letters of appointment contain specific variations or exceptions.

If you have different types of employees (such as fixed-term and indefinite), you can have multiple letter of appointment templates.

The letter of appointment incorporates the binding terms of the Personnel Handbook by reference and draws attention to the non-binding rules. This enables the employer and employee to sign a short letter without having to include all the contractual provisions.

The personnel handbook includes all generic particulars that apply to all workers, including employees. This will ensure standard employment provisions that will be applied equally and fairly to all workers, except where there are valid grounds to ‘differentiate’ in a non-discriminatory way based on the inherent requirements of the job or the work to be done.

The personnel handbook can start with general statements concerning values and other related matters. It consists of two parts: the binding terms and the non-binding rules. The terms can only be changed by mutual agreement with the employees, whereas the employer can unilaterally change the rules when necessary, as they are not part of the employment contract. This is why it is essential to have two parts: one dealing with binding terms and the other with non-binding rules.

1. Binding terms

These are the terms and conditions of employment and include:

  • What is expected during a trial or probationary period
  • Whether employment will thereafter be indefinite, and the agreed notice period.
  • That fixed-term employment may be linked to projects or operational requirements.
  • Essential particulars of employment as required by the BCEA.
  • Nature and extent of confidentiality during and after employment.
  • Lawful termination of employment for a valid and fair reason.
  • Need to impose restraints against unfair competition.
  • Who owns the intellectual property they may create.

2. Non-binding rules

The rules relate to the rights and obligations of employees. The rules include:

  • applicable rules and standards of conduct and performance, and
  • the nature and extent of privileges and responsibilities.

Depending on the complexity of your organisation, you may also need the following optional extras. Policy should not be part of the employment contract; therefore, personnel handbooks typically do not include personnel policies and procedures. They should be separate documents. They are interdependent and work together.

These policies are written for employees and outline the organisation’s policy on various subject matters. They are sometimes referred to as HR policies. They apply to all employees, and the employer can change them unilaterally because they do not form part of the employment contract. They should be capable of being separate documents because you might want to email them to all employees or display them as posters. Examples include:

Procedures fall under policies and take various forms. You get general procedures, procedures to be followed by:

  • management (for example, procedures to manage employees that are not intended to punish employees but to protect the business), and
  • workers (for example, a grievance procedure to alert senior management to various issues and avoid unhappiness that could result in unrest).

Procedures should not be confused with standards for management and employees. Standards need to be set relating to many matters including privacy and data protection. Whether this is done by codes, policies or procedures does not really matter provided it is clear what needs to be understood and what has to be done about it.

Why the Michalsons employment contract template?

  • Benefit from our years of experience and insight. Our senior associate, Graham Giles, has exceptional knowledge and experience acquired over more than 50 years of practising law as an attorney, notary public, and advocate, as well as lecturing at various universities.
  • Manage your risks by being up to date. Graham created and manages GilesFiles so that he is completely up-to-date with the latest court judgments.  He monitors and summarises all important judgments, including those of the Constitutional Court, High Court, and Labour Courts, as well as decisions relating to the Bill of Rights.
  • Reduce disputes. We draft in plain language. This means both management and employees understand what they are agreeing to. No legalese.

Employment Contract template for South Africa questionnaire

Complete this form with your organisations details. We will then provide you with an estimate to draft the documents to require. Please do not input the details of the employees or potential employees.

  • You can select multiple relationships by holding down the shift key.
  • You can select multiple documents by holding down the shift key.