CONTRACTS OF EMPLOYMENT – COMPULSORY?

We have had many debates with the Department of Labour and the CCMA whether Contracts are in fact compulsory. In terms of the Basic Conditions of Employment Act 75 of 1997, the particulars of employment and remuneration must be contained in a written document and given to an employee when that employee commences employment. These particulars have to contain information such as the full name and address of the employer, the name and occupation of the employee, the place of work, the date on which the employment began, the ordinary hours of work, the wage and rate or method of calculating the wages, the rate for the overtime work, any other payments in cash or kind. It must enumerate the deductions to be made from the employee’s remuneration and must outline the leave that the employee is entitled to. There are many other factors that have to be in writing and if in fact the employee has no document of this nature, then the employer is committing an offence. We have seen the Inspectorate of the Department of Labour intervening in other issues and at the same time, requesting the letters of appointment or at least the written particulars of the employment as contained in Section 29 of the Basic Conditions of Employment Act. If there are no written particulars, then the Inspectorate will have issued the warning.