Employment Contracts in South Africa Explained

What is an Employment Contract?

An employment contract is a legally binding agreement between an employer and an employee, outlining the terms and conditions of employment.

In South Africa, employment contracts are governed by the Basic Conditions of Employment Act of 1997 (“BCEA”), which sets out the minimum standards for all employment contracts.

What are the Essential Terms of an Employment Contract?

An employment contract should include details such as, inter alia, the job title, duties and responsibilities of the employee, the duration of the contract, the salary and the terms of payment. Additionally, it should also specify the notice period required for termination, the working hours and leave entitlements, and any other benefits provided by the employer.

Legal Formalities for an Employment Contract

It's important to note that an employment contract should comply with the BCEA and not include any terms that are less favorable than those provided for in the BCEA. Such terms are considered void.

Types of Employment Contracts

In South Africa, employment contracts can be either for a fixed-term or an indefinite term. A fixed-term contract is for a specific period of time, whereas an indefinite contract has no specified end date. It's important to note that the BCEA provides additional protection for employees on fixed-term contracts, as they are entitled to the same benefits and rights as employees on indefinite contracts.

It's also important to note that the BCEA provides for a probationary period, which allows the employer to evaluate the employee's suitability for the position before confirming their employment on a permanent basis.

If you need assistance with employment contracts, our Employment Attorneys will easily be able to assist you.