Employment Contracts in South Africa: What Every Employer Needs to Know

Why You Need a Written Employment Contract

Many employers in South Africa, particularly small businesses and households, operate without a written employment contract. This is a significant legal risk. Section 29 of the Basic Conditions of Employment Act 75 of 1997 (BCEA) requires employers to provide employees with written particulars of employment when they start work.

Without a written contract, disputes about working hours, leave, pay and termination become difficult to resolve. The CCMA (Commission for Conciliation, Mediation and Arbitration) handles thousands of cases every year where the employer had no written agreement to refer to. In most of these cases, the ruling favours the employee.

What the BCEA Requires

The Basic Conditions of Employment Act 75 of 1997 is the primary piece of legislation governing employment relationships in South Africa. It sets minimum standards for:

• Working hours: A maximum of 45 ordinary hours per week (9 hours per day for a 5-day week, 8 hours per day for a 6-day week)
• Overtime: Overtime must be agreed upon and paid at 1.5 times the normal hourly rate
• Meal intervals: An employee is entitled to a meal break of at least 60 minutes after 5 consecutive hours of work
• Annual leave: A minimum of 15 working days per year (or 1 day for every 17 days worked)
• Sick leave: 30 days paid sick leave in a 36-month cycle
• Maternity leave: 4 consecutive months of maternity leave
• Family responsibility leave: 3 days per year for employees who have worked for longer than 4 months
• Notice periods: Minimum notice of 1 week (first 6 months), 2 weeks (6 months to 1 year), or 4 weeks (1 year or more)

Your employment contract must meet or exceed these minimums. You cannot contract out of the BCEA by offering less favourable terms.

General Employment Contracts vs Domestic Worker Contracts

South African labour law distinguishes between general employees and domestic workers. While both are protected by the BCEA, domestic workers receive additional protection under Sectoral Determination 7, which is issued by the Minister of Employment and Labour.

General Employment Contract

A general employment contract is used for employees working in offices, shops, restaurants, factories and other business environments. It should cover:

• The employee's appointment and position
• Job description, duties and responsibilities
• Remuneration and payment frequency
• Probation period (typically 3 months, as allowed by the Labour Relations Act 66 of 1995)
• Working hours and overtime
• Meal intervals
• Annual leave, sick leave, maternity leave and family responsibility leave
• Termination and notice periods

Domestic Worker Contract

Domestic workers include cleaners, gardeners, nannies, drivers and other household employees. Their contracts must comply with Sectoral Determination 7, which provides specific protections:

• Minimum wages: The Minister publishes updated minimum wages annually. Employers must pay at least the applicable minimum
• Regulated hours: Working hours must be specified for each day of the week, including start and end times
• Sunday and public holiday work: If a domestic worker works on a Sunday, they must be paid at 1.5 times the normal rate (or double if they do not normally work on Sundays). Public holidays are paid at double the normal rate
• UIF contributions: Employers must register domestic workers with the Unemployment Insurance Fund
• Leave: Three options for calculating leave entitlement: 3 weeks per year, 1 day for every 17 days worked, or 1 hour for every 17 hours worked

"A domestic worker has the same basic labour rights as any other employee in South Africa. The only difference is that certain conditions are set by Sectoral Determination 7 rather than by negotiation."

Key Clauses Every Employment Contract Should Include

Whether you are hiring a general employee or a domestic worker, your contract should include the following clauses:

1. Parties: Full names, ID numbers and addresses of both employer and employee
2. Commencement date: When the employment relationship begins
3. Job title and duties: A clear description of what the employee is expected to do
4. Remuneration: The salary or wage amount, how often it is paid, and the method of payment
5. Working hours: Normal hours, overtime arrangements and meal intervals
6. Probation: The duration and conditions of the probation period
7. Leave entitlements: Annual leave, sick leave, maternity leave and family responsibility leave
8. Termination: Notice periods, grounds for summary dismissal and retrenchment procedures
9. Confidentiality and restraint of trade: If applicable to the position
10. Disciplinary procedures: Reference to the employer's disciplinary code or the Labour Relations Act

Common Mistakes Employers Make

These are the most common errors we see when employers draft their own contracts:

• No written contract at all: Relying on a verbal agreement leaves you exposed at the CCMA
• Using a generic template from the internet: These often do not comply with current BCEA requirements or Sectoral Determination 7
• Offering less than the legal minimum: You cannot contract below BCEA minimums for leave, hours or notice periods
• No probation clause: Without a probation clause, dismissing a new employee who is not performing becomes much more difficult
• Incorrect notice periods: Many contracts specify notice periods that are shorter than the BCEA minimum
• Not registering for UIF: Failure to register domestic workers for UIF is a criminal offence

How to Order an Employment Contract Online

At Anel Krog Attorneys, you can order a professional employment contract online for R500. Both the general employment contract and the domestic worker contract are drafted by an admitted attorney and comply with the BCEA, the Labour Relations Act and Sectoral Determination 7.

The process is simple:

1. Choose your contract type (General Employment or Domestic Worker)
2. Fill in the details (employer, employee, working hours, remuneration)
3. Pay securely online via PayFast
4. Receive your contract as an editable Word document within 30 minutes