What should be included in an employment contract?

Every employer should ensure that an employment contract contains all the essential terms and conditions of employment. While the Basic Conditions of Employment Act (BCEA) does not make a written employment contract compulsory in every situation, Section 29 of the Act requires employers to provide employees with written particulars of their employment before they commence work, subject to certain limited exceptions.

Including these written particulars in a comprehensive employment contract is considered best practice. It not only helps employers comply with South African labour legislation but also reduces the risk of misunderstandings and workplace disputes.

A well-drafted employment contract should typically include:

• The employer’s full name and business address.
• The employee’s full name, job title, occupation, or a clear description of their duties.
• The employee’s normal place of work, or an indication if they will work from different locations.
• The employment commencement date.
• The employee’s ordinary working days and hours.
• The employee’s salary or wages, together with how and when remuneration will be paid.
• Overtime rates and the circumstances under which overtime may be worked.
• Details of any additional payments, allowances or benefits.
• Information regarding deductions that may lawfully be made from remuneration.
• The employee’s leave entitlements, including annual, sick, maternity and family responsibility leave where applicable.
• The notice period required to terminate the employment relationship.
• Any applicable bargaining council agreement, sectoral determination or collective agreement.
• Any other workplace policies or documents that form part of the employment contract, such as disciplinary procedures, grievance procedures, confidentiality clauses or company policies.

Employers should also remember that whenever any of these employment terms change, the amendments should be recorded in writing and explained to the employee in a language and manner they understand. The BCEA further requires employers to retain these written employment records for at least three years.

Although South African law recognises oral employment agreements, relying solely on verbal arrangements can expose employers to unnecessary legal risks. Without a written contract, it may become difficult to prove what terms and conditions were originally agreed upon if a dispute arises.

For this reason, COFESA strongly recommends that every employer issues a comprehensive, legally compliant written employment contract that incorporates the minimum requirements of Section 29 of the BCEA, together with any additional terms necessary to protect the business while remaining compliant with South African labour legislation.

Need Assistance with Employment Contracts?

Whether you need to draft a new employment contract, review an existing agreement, or ensure your workplace documentation complies with South African labour legislation, COFESA is here to help.

Our labour law specialists assist employers with professionally drafted employment contracts, fixed-term contracts, probation agreements, restraint of trade clauses, confidentiality agreements, independent contractor agreements, workplace policies, disciplinary codes, and a wide range of other employment-related documents. Every agreement is tailored to your business while ensuring compliance with the Basic Conditions of Employment Act (BCEA) and other applicable labour laws.

Protect your business before problems arise. Contact COFESA today for practical labour law advice and legally compliant employment contracts that safeguard your organisation and reduce the risk of costly disputes.

Contact the COFESA Helpline for practical labour law advice and legally compliant employment contracts:

011 679 4373 | 082 888 9516 | helpline@cofesa.co.za

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The information provided in this Labour Law Questions & Answers Centre is intended for general informational purposes only and should not be regarded as legal advice, legal opinion, or a substitute for professional labour law consultation. While COFESA takes every reasonable step to ensure that the information published is accurate and up to date at the time of publication, South African labour legislation, case law, regulations and workplace circumstances may change over time.

Every employment matter is unique, and the appropriate course of action will depend on the specific facts, applicable legislation and relevant case law. Employers should avoid making disciplinary, dismissal, retrenchment or other employment decisions based solely on the information contained in these articles.

COFESA accepts no liability for any loss, damage or consequences arising from reliance on the information published in this Resource Centre without obtaining professional advice.

If you require guidance on a specific workplace matter, disciplinary hearing, dismissal, CCMA dispute, Employment Equity compliance, Occupational Health and Safety obligations or any other labour law issue, we recommend contacting COFESA directly for advice tailored to your circumstances.