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What is Employee Contract?
An employers' most important duty is to provide the
employee with the written particulars of employment. An
employee contract must include a letter of appointment,
the terms and conditions of employment and the
information that fulfills the legal requirements.
It is the duty of an employer to provide the employee
with all of the information of the company like the
company policies and other documents that are mentioned
in the contract. It has been noticed that many employee
contracts do not contain well defined procedures and
policies of the companies.
Contents of Employee Contract:
An employee contract must contain the following details
:
1) CONTRACT DETAILS
• Full name of employer and employee
• Address of employer
• Place of work of employee, and, where the employee is
required or permitted to work at various places, an
indication of this
• Title of job or nature of the work or a brief job
description
• Date of commencement of employment
2) PAY & BENEFITS
• Wages/ salary details
• Rate of overtime work (if eligible for overtime pay)
• Any other cash benefits that the employee is entitled
to
• Any payment in kind that the employee is entitled to
and the value of that payment (e.g. accommodation)
• Any deductions to be made from the employee's
remuneration (e.g. Pension / Medical Aid)
• Method of payment and method of calculating wages
• Additional benefits, and any conditions under which
they apply, e.g. achievement of targets
• Pension scheme - whether one exists, and if so
conditions
• Approvals for any deductions from pay, e.g. pension
scheme other than those required by law
3) NATURE OF CONTRACT
• Type of contract: permanent, temporary, fixed term
• Duration of a temporary contract or termination date
for a fixed term contract
• Period of notice required to terminate employment, or
if employment is for a specified period, the date when
employment is to terminate
4) HOURS OF WORK, SCHEDULES, AND OVERTIME
• Number of hours in workweek and workday.
• Procedure for scheduling.
• Alternative work schedules/flex-time.
• Definition of overtime & pay or compensatory time off
• Advance notice of overtime & right to refuse overtime
• Staffing and workload standards.
• Meal and rest periods.
• Timekeeping and attendance requirements
5) LEAVES
• Annual leave entitlement
• Role of seniority in scheduling vacations.
• Conditions relating to taking leave, e.g. present
company holidays or notice requirements
• Details of any other paid leave entitlements
• Sick leave arrangements and conditions of any benefits
6) DISCIPLINARY PROCEDURES
• Details of the disciplinary procedure
• Conditions under which the employer can terminate the
contract e.g. gross misconduct
7) GRIEVANCE PROCEDURE
• Definition of a grievance.
• Stewards' right to use work time for grievance
investigations.
• Employees' right to union representation.
• Explanations of each step in grievance procedure and
time limits at each step.
8) HEALTH & SAFETY
Employer and employee responsibilities
9) PROTECTION OF BUSINESS INFORMATION
• Details of confidentiality requirements
• Use and mis-use of electronic communications and
Internet
10) ABOUT PROBATION PERIOD
• Purpose & duration of the probationary period
• Benefits that will come into effect when the
probationary period is completed
11) )PERFORMANCE EVALUATION
Criteria & frequency for evaluations.
12) RETIREMENT POLICY
13) ANY OTHER CONDITION, like,
Any collective or 3rd party agreement which affects
the employee's terms and conditions
14) UNIFORMS AND TOOLS
Allowance for or provision of uniforms and/or tools
for affected employees.
15) ACCEPTANCE
Acceptance clause whereby employees sign that they
accept the contract of employment and conditions
therein.
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