Contracts

Justification of a Fixed-Term contract as opposed to Probation

The purpose of this article is to highlight the rationale and justification for entering into a fixed-term contract whilst comparing the stark differences between a fixed-term contract as opposed to a probationary clause in an employment contract. These two concepts are often misinterpreted or misunderstood by employers, and it is vital that the legal context [...]

2021-11-22T11:45:26+02:00November 22nd, 2021|Contracts|1 Comment

The Importance of Collective Agreements

A Collective Agreement is defined in the LRA as a “written agreement concerning terms and conditions of employment or any other matter of mutual interest” concluded between a registered trade union and employer. If there is a majority union in the workplace, the agreement may also bind non-union members. Employees who are not parties to [...]

2021-11-18T11:15:12+02:00November 18th, 2021|Contracts|Comments Off on The Importance of Collective Agreements

Termination of a fixed-term contract and statutory payments

A fixed-term contract is a contract designed to be for a specific period or until the completion of the project for which the specific contract was entered. Fixed-term contracts come to a natural end at the time stipulated in the contract or at the arrival of a specific event. A frequently asked question is whether [...]

2021-11-15T14:07:39+02:00November 15th, 2021|Contracts|Comments Off on Termination of a fixed-term contract and statutory payments

Getting to grips with the Provisions of Section 198B of the Labour Relations Act

INTRODUCTION Section 198B of the Labour Relations Act (LRA) sets out the requirements for employers on how fixed-term contracts are to be used.  It is important to note that fixed term and probationary contracts are not the same. Understanding both is important to avoid unfavourable outcomes when disputes are referred to the Commission for Conciliation, [...]

2021-11-08T14:30:22+02:00November 8th, 2021|Contracts|Comments Off on Getting to grips with the Provisions of Section 198B of the Labour Relations Act

Limited duration contract – A Brief overview of the legal requirements

Permanent or full-time employment has traditionally been the most common form of employment and is assumed to be the standard or typical form of employment. The contract of employment is usually for an indefinite period, and the employment relationship may be terminated by various means, including but not limited to a mutual agreement, dismissal, or [...]

2021-10-29T13:05:33+02:00October 29th, 2021|Contracts|Comments Off on Limited duration contract – A Brief overview of the legal requirements

When the Companies Act meets the Labour Relations Act –  Applicability of the LRA on Shareholder-Employees

A shareholder in a company can also act in the capacity of an employee of the company. This is very common in smaller enterprises and raises valid questions as to what the legal consequences would be if "shareholder-employee" misconducts themself. A "shareholder-employee" can be defined as any person who acts in their capacity as both [...]

2021-10-25T12:53:18+02:00October 25th, 2021|Contracts, Labour Relations Act|Comments Off on When the Companies Act meets the Labour Relations Act –  Applicability of the LRA on Shareholder-Employees

The effect of the ‘deeming provision’ on the employment relationship in terms of Section 198A of the Labour Relations Act

Since the amendments to the Labour Relations Act 66 of 1995 (the LRA) came into effect on 1 January 2015, the deeming provisions contained in section 198A(3)(b) of the LRA defines temporary services (TES), commonly referred to as labour brokers in South Africa as "… any person who, for reward, procures for or provides to [...]

2021-10-18T10:27:04+02:00October 18th, 2021|Contracts, Labour Relations Act|Comments Off on The effect of the ‘deeming provision’ on the employment relationship in terms of Section 198A of the Labour Relations Act

Should Employers Renew Overtime Agreements Annually?

The regulation of working hours is contained in Chapter two of the Basic Conditions of Employment Act. In terms of Section 6 of the Act, these regulations do not apply to employees who: earn above the threshold, which is R211 596.30 per annum; senior managerial employees; employees who are sales staff who travel to customers and [...]

2021-10-06T12:24:15+02:00October 6th, 2021|Contracts|Comments Off on Should Employers Renew Overtime Agreements Annually?

Evaluating the effect of automatic termination clauses on dismissals

Automatic termination clauses have been a touchy issue in employment law for some time. An essential issue is whether such clauses go against the provisions of the LRA and, in particular, section 5, which prohibits any person from, inter alia, preventing an employee from exercising any right conferred by the LRA, such as the right [...]

2021-10-06T12:05:11+02:00October 6th, 2021|Contracts|Comments Off on Evaluating the effect of automatic termination clauses on dismissals

Employee or independent contractor – which one am I?

There is a clear distinction between an employee and an independent contractor, as each has its own distinguishable characteristics. Employers must pay particular attention to the very important differences to ensure that they either contract with or employ through the correct avenues and apply the correct legal principles. One of the first distinguishable traits of [...]

2021-10-04T09:29:58+02:00October 4th, 2021|Contracts|Comments Off on Employee or independent contractor – which one am I?
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