The bells and whistles of employment contracts-know your way around yours

contractIt’s that time of year where you’ve just landed a new job and your new employer has provided you with a new employment contract to sign. Before signing the employment contract and celebrating it, it is important to understand the contents of your employment contract. Broadly speaking an employment contract is:

  1. A voluntary agreement;
  2. Between two parties (employee and employer), in terms of which;
  3. The employee undertakes to perform certain duties for the employer;
  4. The employer gains a right to command the employee as to the manner in which the duties should be carried out;
  5. The contract endures for an indefinite or fixed period of time;
  6. In return for determinable remuneration in money or in value payable to the employee.

One can see from the definition alone that an employment contract is an extremely important document as it regulates and defines the relationship between the employee and the employer. An employment contract does not have to be in writing, but in terms of the Section 29 of the Basic Conditions of Employment Act 75 of 1997 all employers who employ more than 5 employees have to conclude contracts of employment with the employees and certain particulars have to be contained in the contracts.

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