EMPLOYMENT AGREEMENT
Introduction This agreement is entered into by and between (insert name of co/cc and registration no.), hereinafter referred to as “the COMPANY”; and (name of employee and ID no.), hereinafter referred to as “the employee”. Notwithstanding that the employer is sole proprietorship/partnership trading as/a close corporation, the term defining the employer as the company is used for convenience only to the lay parties to this agreement and in no way reflects, endorses, varies or amends the legal personality of the employer. Terms of the agreement 1. Employment contract 1.1.We confirm your employment with effect from (date) in the position of (position). This agreement sets out the terms and conditions of your employment. 1.2.Your employment with the COMPANY will endure for an indefinite period unless terminated in accordance with the provisions contained in paragraph 5. 1.3.The Company may in its absolute discretion and from time to time require the employee to perform duties which may fall outside of your job title and/or job description. 2. Effective date The effective date of this agreement is the date of signature to this agreement. If, however, the employee has been employed by the company prior to the effective date and continue to remain in the employ of the company immediately preceding the effective date then the applicability of the time periods for the calculation of your holiday leave will be calculated in accordance with the date you commenced your employment with the company in terms of clause 1.1. above. 3. Remuneration 3.1. Your initial basic salary is (insert rand amount) per month/week/forthnight, payable with effect from (insert date) and will be paid in arrears on the th day each month (or on the previous business day, should this day fall on a Sunday or Public holiday). Salaries are reviewed annually on employment anniversary based on various factors including but not limited to merit, market practice, affordability, inflation, job grade and potential, and are granted solely at the
discretion of management. However, when a salary is reviewed it does not necessarily mean an increase. 3.2. In the event of termination of employment, either by the employee or by the company, during the review month, the employee will not receive a salary increase for that month. 3.3. The company is entitled to deduct or set off from the employee’s salary any amounts due by the employee to the company for any reason whatsoever. The employee furthermore agrees to the deduction in terms of RELEVANT LAWS, LIST RELEVANT TAXES AND LEVIES, medical aid, pension/provident fund? 3.4. In addition to employee’s salary, the employee will receive a monthly cellular telephone allowance of (amount). 3.5. The company shall refund to the employee any out of pocket expenses incurred by yourself on behalf of the company which are substantiated by vouchers, have been approved by the company in advance and have been incurred in accordance with the principles determined by the company from time to time. 3.6. To ensure the timely reimbursement of expenses, the employee is requested to submit the prescribed claim form on or before the 21st day of the month during which they were incurred. 4. Employee’s duties The following conditions of employment apply: 4.1.The employee shall report to (name of immediate supervisor) who will determine employee’s duties and responsibilities from time to time. 4.2.Employees employment is subject to the conditions set out in the Human Resources Policies and Procedures manual, a copy of which was handed to the employee upon commencement of employment. 4.3.The employee is expected to conform to any other lawful regulations, instructions and procedures that are in force and that which may be instituted by the company from time to time in the future. 4.4.The employee may not accept work from any agencies, nor render services to any other company, organization or individual unless permitted to do so in writing by the company.
4.5.The employee is expected to devote the whole of his/her time and attention during company working hours and such additional time as the company may require, to the business affairs of the company and to his/her duties in terms of his/her employment with the company. 4.6.The company may in its absolute discretion require the employee: 4.6.1. 4.6.2. 4.6.3. To perform duties which may fall outside of employee’s job title/description; or To accept any other post or restructuring of duties; or To perform any other reasonable and lawful additional duties.
4.7.In the event of the termination of your employment for any reason whatsoever, the employee is obliged to return any company assets or equipment in your possession to the company, including any documentation belonging to the company. 4.8.The employee acknowledges and confirms that the employee shall be obliged to perform subsidiary tasks in addition to the primary tasks for which the employee is employed. The company undertakes to ensure, however, that these subsidiary job tasks will be, insofar as it is practical to do so, within the training and experience or occupational capabilities of yourself and that the employee shall not suffer any loss of remuneration or status for work performed on subsidiary tasks. 4.9.The employee undertakes to: 4.9.1. 4.9.2. 4.9.3. Carry out all such reasonable and lawful functions and duties as are from time to time assigned to you; Obey and comply with all lawful and reasonable instructions given to the employee by his/her superior; Be true and faithful to the company in all dealings and transactions relating to the business and interests of the company and to use your best endeavours to protect and promote the business, reputation and goodwill of the company at all times during your employment with the company; Submit to management or to any person nominated by management such information and reports as may be required in connection with the performance of your duties and the business of the company and devote the whole of your time and attention during the company’s business hours to your duties in terms of your employment with the company.
4.9.4.
4.10. Whilst the employee is employed by the company the employee hereby assigns and transfers to the company all his/her right, title and interest in and to all intellectual property and copyright which the employee might have
acquired in regard to the performance of his/her duties with the company, which is set out in more detail in Annexure “B” annexed hereto. It is a condition of employee’s employment that the employee shall sign Annexure “B” and return it to the company. 4.11. The employee acknowledges that the employee shall be obliged on occasions/regularly/frequently/by necessity due to the nature of your work to travel to customers’ premises in order to properly perform your duties. Whenever such traveling is necessary, arrangements are to be co-ordinated with your immediate superior before any commitment is made to the customer concerned. In the event that the employee utilizes his/her own vehicle, the company will reimburse the employee for the costs arising therefrom, calculated at the company’s ruling rates for reimbursement at the time. 5. Termination of employment Either the employee or the company is entitled to terminate your employment on written notice given to the other party, as follows: 5.1.If the employee has been employed for four (4) weeks or less, either party is required to give the other party one (1) week written notice. 5.2.If the employee has been employed for more than four (4) weeks, but not more than one (1) year, either party is required to give the other party two (2) weeks written notice; 5.3.If the employee has been employed for more than one (1) year, either party is required to give the other party four (4) weeks written notice. 5.4.Notice of termination of employee’s employment: 5.4.1. 5.4.2. 5.4.3. May not be given during any period of leave to which the employee is entitled to; Must not run concurrently with any period of leave to which the employee is entitled to; May not be given on any other day except the 1st day of the month except if the first day of the month falls on a public holiday or weekend, in which case notice must be given on the first working day following such day.
5.5.The company will be entitled to terminate your employment without notice in compliance with the relevant labour legislation, as amended, and in terms of the procedures set out in the Human Resources Policies and Procedures Manual, which may include a disciplinary hearing, if you: 5.5.1. Commit any serious or persistent breach of any of the provisions of this Agreement;
5.5.2. 5.5.3. 5.5.4.
Are guilty of any serious misconduct or deliberate neglect in the discharge of your duties under this Agreement; Are guilty of any other conduct which will justify summary dismissal in common law; Are declared either temporary or permanently in capacitated due to illness or injury which results in the employee being absent from work for an unreasonably long period of time.
5.6.Notwithstanding anything said above, your employment with the company will terminate at the end of the month in which the employee turns 65 (sixty five) years of age unless the employee and the company agree otherwise in writing. 5.7.On termination of employment, the employee is entitled to a Certificate of Service. 5.8.On termination of employment, the employee shall immediately deliver to the company all assets, equipment, records, documents, accounts, letters, notes, memoranda and papers of every description within his/her possession or control relating to the affairs and business of the company, whether or not they were originally supplied by the company, in good order, fair wear and tear accepted. 6. Confidentiality The employee agrees not to use for your own benefit or for the benefit of any other person and not to disclose to any third party, neither during the period of this agreement is in force or after its termination, except as intended in the ordinary and proper course of carrying out your duties in connection with company business, any confidential information. This includes, but is not limited to, information relating to trade secrets, customer lists, business affairs, supplier’s lists, technical methods and processes. 7. Annual leave period 7.1.The employee will be entitled to fifteen (15) consecutive annual days leave on full remuneration in respect of each leave cycle, defined as the period of twelve (12) months immediately following commencement of your employment. 7.2.The company is obliged to grant the employee annual leave not later than 6 (six) months after the end of the annual leave cycle. 7.3.The company may not permit the employee to take annual leave during any other period of leave to which the employee is entitled to in terms of the Basic Conditions of Employment Act, or during employee’s notice period.
7.4.All leave granted by the company must be taken at a time convenient to the company and is subject to prior notice and approval by the company. 7.5.To arrange leave, the employee is required to complete and submit the leave form as set out in the Human Resources Policies and Procedures manual to the company for approval. 7.6.Any application for the granting of annual leave for a period in excess of two (2) working days must be submitted for approval at least six (6) weeks prior to the proposed commencement date. 8. Sick leave 8.1.The employee is entitled to three (3) weeks sick leave during every thirty-six (36) months period of employment except that during the first six (6) months of employment, the employee will be entitled to one (1) day paid sick leave for every twenty-six (26) days worked. 8.2.If the employee is absent from work for more than two (2) consecutive days, the employee is required to produce a medical certificate which must be signed by a medical practitioner or any other person who is certified to diagnose and treat patients and who is registered with the professional council established by an Act of Parliament. 8.3. The company is not required to pay the employee sick leave if the employee has been absent from work for more than two (2) consecutive days, or on more than two (2) occasions during an eight (8) week period, and the employee does not produce a medical certificate stating that the employee was required to notify the company by no later than 08h00 on the 1st day of your sickness or absence from your work due to illness. 8.4.The employee is required to complete a sick leave form, as set out in the Human Resources Policies and Procedures manual, immediately upon your return to work. This form should be handed to the company together with the medical certificate. 8.5.Should the employee at any time become permanently unable, in the reasonable opinion of the company management, to perform his/her duties adequately by reason of ill health, the company will be entitled to terminate employee’s employment on such terms as the company, in its sole discretion, considers reasonable.
9. Hours of work 9.1.Employees working hours shall be between the hours of 07h30 and 16h30, Monday to Friday. 9.2.The employee is entitled to a lunch break of forty-five (45) minutes, to be taken at a convenient time depending on the circumstances, preferably between 12h00 and 14h00. 9.3. The employee undertakes and agrees to work overtime whenever it is deemed necessary by the company. The employee acknowledges that the employee will be employed by the company, inter alia, because the employee is prepared to work overtime on occasions and the company has employed the employee on this basis. 9.4.Payment will be made for any overtime worked, unless by special prior written arrangement with the company. 9.5.The employee will be required to work a minimum of forty-five (45) hours per week, but due to the varied nature of the work, the employee may be expected to work additional hours to meet your objectives. This may include the need to work during evenings or weekends and may include country trips on occasion involving overnight stays away from home. 9.6.On occasion, it will be necessary for the employee to attend training courses, conferences and meetings, forcing the employee to stay away from home. Many of these events take place after hours and over weekends, and it may be compulsory for the employee to attend. 10. Medical aid 10.1. On commencement of service the employee will be obliged to join the company Medical Aid Scheme, which is currently the (name). Details of this are contained in the Human Resources Policies and Procedures manual. 10.2. Membership is compulsory unless proof of membership to another medical aid scheme is produced within seven (7) days of the date of the commencement of your employment with the company. 10.3. The company will pay (amount or %) of your monthly contributions, the balance is your responsibility and will be deducted from your monthly salary. 10.4. Should the employee belong to an alternate scheme, the company will pay an equal to the amount it would ordinarily contribute towards Medical Aid Fund contributions to the alternative scheme.
11. Provident fund On commencement of service, the employee is obliged to join the company Pension Scheme and your contribution will be deducted monthly from your salary. Details of the scheme and contributions are set out in the Human Resources Policies and Procedures Manual. 12. Group life insurance The company operates a Group Life insurance scheme for the benefit of its employees and the full costs of belonging to this scheme is currently carried by the company. (delete if not applicable) 13. Granting of credit The company does not advance monies to its employees, nor does it grant loans. (add own rules) 14. Collective arrangements and agreements The employee will be bound by any collective arrangements and agreements concluded by the company and employees of the company and/or the representatives of such employees. 15. The need for flexibility 15.1. To ensure the fullest possible utilization of manpower resources, all employees are expected to perform work within their skills and capability. To achieve this, individuals will accept any necessary training and be prepared to move from job to job, in line with need patterns experienced by the company. 15.2. The employee confirms that complete flexibility of jobs and duties within the company, both within sections/departments and between various sections/departments of the company, subject to your skills and capabilities, is a condition of employment. In return the company recognizes and accepts the need for training and retraining to ensure broadening of its employees’ skills levels and their ability to keep up with new technological developments as they affect employees’ ability to perform their duties. 15.3. The company may, in its discretion and upon reasonable notice being given, transfer the employee from one department or section to another, or from day to shift work or vice versa, either permanently or temporarily.
16. Training The employee hereby consents to undergo such training as may be prescribed by the company from time to time. 17. Security 17.1. The employee undertakes to abide by the company’s security regulations as in force from time to time. 17.2. The employee undertakes not to unlawfully possess any substance, article or thing which is the property of the company or any employee of the company. 18. General 18.1. No indulgence granted by either party hereto will constitute a waiver of any of that party’s rights under this agreement. It follows that neither party will be precluded, as a consequence of having granted such indulgence, from exercising any rights against the other which may have arisen in the past or may arise in the future. 18.2. No agreement varying, adding to, deleting from or canceling this agreement will be effective unless reduced to writing and signed by or on behalf of the parties. 18.3. This agreement as read with any collective agreements or arrangements and with the disciplinary, grievance and retrenchment procedures laid down by the company from time to time, will constitute the entire contract between the parties with regard to the matters dealt with in this agreement. Accordingly, no representations, terms, conditions or warranties that are not contained in this agreement will be binding on the parties. 18.4. This agreement and the disciplinary, grievance and retrenchment procedures as laid down by the company from time to time will at all times be subject to the provisions of the RELEVANT LABOUR LAWS, any other applicable law at the time and any amendments to such laws. 19. Disciplinary, grievance and retrenchment procedures 19.1. Any matter (including any disciplinary action taken by the company) arising from your employment with the company will be dealt with in terms of the disciplinary code and practice as set out in the Human Resources Policies and Procedures manual which forms a material part of this agreement.
19.2. The employee will be bound by the disciplinary, grievance and retrenchment procedures laid down by the company from time to time as set in the Human Resources Policies and Procedures manual. 19.3. The employee acknowledges that he/she has been furnished with, is in possession of and has familiarized himself/herself with the company’s current disciplinary, grievance and retrenchment procedures as set out in the Human Resources Policies and Procedures manual. Compliance with such procedures is a term and condition of employee’s employment with the company.
SIGNED AT .
ON THIS
DAY OF
_______________________________________________ Duly authorized representative of company NAME Name: SIGNED AT . ON THIS DAY OF
I, , the employee, hereby accept the terms and conditions of employment as set out in the above contract.
__________________________________ Employee Full name:
ANNEXURES: • • Annexure A: Employee’s job description form. Annexure B: company’s Human Resources Policies and Procedures manual (Employment policy manual).