What is an Employment Contract in South Africa?

Employment status and contracts of employment

It is important to know what type of employee someone is when they start a job. This could be permanent, on a fixed term, temporary, or something else.

Employers must provide employees with written job details on their first day of work. This is a legal requirement outlined in section 29 of the Basic Conditions of Employment Act. This is a legal obligation under section 29 of the Act.

This minimum requirement, however, is not sufficient. Employers should enter into a written contract of employment with every employee. But what does the contract of employment entail, and what types of contracts can be utilized?

Definition of a contract of employment

An employment contract is when an employee agrees to work for an employer in exchange for pay. The employer has authority over the employee and supervises their work.

The contract of employment

The contract of employment is the foundation of the relationship between an employee and his employer. The contract links the employer and the employee in an employment relationship. Labour laws only apply when there is an employment relationship. If there is no such relationship, the laws do not apply.

General requirements

The parties must enter into the contract freely and voluntarily. Section 48 of the BCEA prohibits forced labor, stating that no one can compel another person to work for them. Employers cannot be required to hire a particular person. It is also against the law for parties to make agreements that go against employment laws.

Also necessary for the parties to be in agreement as to the nature of the contract. The employee thinks they are getting a job, but the employer thinks they are hiring an agency. Not only the nature of the contract is important, but the parties must also be in agreement as to the contents of the contract.

Formalities

Common law does not require any formalities when parties conclude an employment contract. The contract of employment arises when the employee accepts them employer’s offer unconditionally. The common law does not require a written contract. However, the Basic Conditions of Employment Act states that employers must provide employees with written job details.

This does not mean a written contract is mandatory or that it would be considered invalid. This doesn’t mean a written contract is necessary or that the contract is invalid.

Certain contracts of employment must be in writing, this is required by other statutes. Examples are those of merchant seamen, learners under the Skills Development Act and candidate attorneys.

When the parties conclude the contract, they must agree on the work the employee is required to perform. The worker provides their skills and work to the employer, who can be a person or a company.

The employee must complete the tasks they agreed to do. They should also handle any other tasks related to their main job. These tasks must be legal and within the employee’s skill set. This means that the employer can tell the employee what to do and how to do it.

The parties must agree on the remuneration to pay to the employee at the conclusion of the contract. Payment can be in cash or other benefits, like a salary or wages. It can be monthly, weekly, daily, or irregular.

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