Include these three clauses in your employment contracts so they are legally compliant

Simangele Mzizi, Fsp Business, 19 Jan. 2015

Tags: contracts of employment, employment contracts, clauses to include in employment contracts, employment contract clauses

The Basic Conditions of Employment Act (BCEA) says you must give your employees employment contracts when they start work.

To fully comply with this legal requirement, you have to make sure the contracts you give your employees include three important clauses in them.

Without these clauses, your contracts won’t comply and you can face legal disputes with your employees or worse, fines from the DoL.

Don’t take that risk.

Read on to find out about the three clauses that must be in your employment contracts so you can make sure they’re 100% legally compliant.


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Make sure your employment contracts are legally compliant by including these three clauses

You must include:

1. An HR policies and procedures clause
I assume you already have HR policies and procedures in place. Every employer should.
The Labour Law for Managers Loose Leaf Service says you must also reference your HR policies and procedures in your employment contracts. This way your policies and procedures will be binding when employees sign their contracts.
In your clause, make it clear what policies and procedures you have in place, how employees can access them and that it’s their responsibility to familiarise themselves with policies and procedures and your company rules.
Note: If you don’t have HR policies and procedures yet, check out the HR Policies and Procedures Manual to discover an easy way to create your today.
2. A benefits clause
Your employment contracts must spell out the benefits you give your employees.
In your benefits clause, talk about your employees’ salaries, when and how you pay them and so on.
3. The process of termination clause
Here, you need to deal with things like:
  • How to resign and the notice periods your employees must work;
  • How termination works when an employee reaches retirement age;
  • Dismissing an employee without notice (summary dismissal);
  • Returning company property when employment ends; and
  • How employees must repay money they owe the company.
To get samples of these clauses, check out the Labour Law for Managers Loose Leaf Service.
It’s crucial you include these clauses in your employment contracts
If you don’t include these clauses, not only will your employment contracts be null and void, but you’ll run into all sorts of problems.
If, for example, you don’t deal with HR policies and procedures, you’ll find it hard to discipline your employees if they go against a policy or procedure. They will just say they didn’t know.
Without a benefits clause, you could have misunderstandings with your employees over salaries.
And if you don’t have a termination clause, you run the risk of employees resigning without serving their notice periods.
Now that you know about these clauses, include them in your contracts of employment so they are legally compliant.
PS: To discover ten other clauses you must never leave out, check out the Labour Law for Managers Loose Leaf Service.

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