Signing an employment contract is one of the most important steps in starting a job. In South Africa the law requires employers to give new hires written particulars of employment, and many disputes arise because employees either miss important clauses or accept unfair terms. This guide explains the clauses you must understand, why they matter, and practical red flags to watch for. (saflii.org)
Quick legal fundamentals (what the law says)
- Employers must provide written particulars when employment starts — name/address of employer, job description, start date, hours, pay, overtime rates, leave entitlements, notice periods and more. If anything changes the written particulars must be updated. (saflii.org)
- Minimum leave and working-time rules come from the Basic Conditions of Employment Act (BCEA): annual, sick, family and maternity leave entitlements and public-holiday rules are statutory minimums. (vula.uct.ac.za)
- Certain protections (e.g., against unfair dismissal, CCMA jurisdiction, fixed‑term contract rules and restraint-of-trade enforcement) are shaped by the Labour Relations Act and case law. Use these benchmarks when assessing unusual clauses. (saflii.org)
Key clauses to read and what they mean
1. Job title, duties and place of work (core identity)
- What to check: precise job title, main responsibilities, reporting lines and whether the employer can change your duties unilaterally.
- Why it matters: vague duties give the employer wide discretion to shift your role or performance expectations — insist on a clear description and a clause limiting unilateral changes.
2. Remuneration, pay frequency and overtime
- What to check: base salary, pay date, commission/bonus formulas, overtime rate and how overtime is approved and paid.
- Red flags: ambiguous bonus formulas, “discretionary” bonuses with no formula, or pay frequency that contradicts verbal offers. Confirm whether benefits (medical aid, pension) are employer‑contributions or employee deductions. (saflii.org)
3. Hours of work, overtime & shift patterns
- What to check: ordinary hours, shift rotation, on‑call expectations, and maximum overtime. The BCEA sets maximum ordinary working hours and overtime rules — your contract cannot lawfully provide for less favourable minimum standards. (vula.uct.ac.za)
4. Leave, public holidays and sick leave
- What to check: annual leave cycle, sick‑leave provision, family/maternity/adoption leave and any enhanced employer leave benefits. Ensure contract entitlements meet or exceed BCEA minimums. (vula.uct.ac.za)
5. Probation and confirmation
- What to check: length of probation, performance review process, training/support and the process for extension or dismissal during probation. Probation must be reasonable and used to test suitability — it is not a carte blanche to dismiss unfairly. (labourguide.co.za)
6. Fixed‑term vs. indefinite contracts
- What to check: whether the contract is for a fixed term or ongoing. Fixed‑term contracts must state objective reasons for the limited period (project, specified event). If used incorrectly (e.g., to avoid permanent status) they may be reclassified. (saflii.org)
7. Notice periods, termination and severance
- What to check: notice required by either party, grounds for summary dismissal, and retrenchment/severance terms. Check whether contractual notice matches BCEA/LRA expectations and whether the employer reserves the right to change notice unilaterally. (saflii.org)
8. Deductions from pay, UIF and statutory contributions
- What to check: any authorised deductions (UIF and PAYE are statutory), voluntary deductions you agreed to (medical/pension/union subscriptions) and the maximum limits for certain employer‑deductions. Employers cannot make unauthorised deductions. (legalfundi.com)
9. Confidentiality, IP and restraint of trade
- What to check: confidentiality obligations, who owns intellectual property (IP) you create, and any restraint‑of‑trade or non‑compete clause. Restraints are enforceable only if reasonable in scope, time and geography and if they protect a legitimate proprietary interest. (saflii.org)
10. Disciplinary, grievance and dispute resolution
- What to check: whether a disciplinary code or grievance procedure is attached; how disputes are escalated (internal steps, arbitration, CCMA). A clause trying to oust CCMA jurisdiction or limit statutory remedies should be treated cautiously. (smelaboursupport.org.za)
11. Remote work, secondment and flexible hours
- What to check: expectations about home‑working, equipment, data‑security, travel costs and whether the employer can require return to office at short notice. Remote clauses should clearly allocate responsibilities. (smelaboursupport.org.za)
Common red flags (stop and ask questions)
- Vague or missing written particulars that BCHA requires on day one. (saflii.org)
- Pay or bonus formulas described as “discretionary” without objective metrics.
- Broad restraint clauses covering entire country for long periods with no legitimate justification. (saflii.org)
- Provisions that allow unilateral, unfettered changes to pay, duties or place of work.
- Deductions from pay that are not authorised in writing or not statutory. (legalfundi.com)
- Fixed‑term contract that appears to be probation in disguise or lacks genuine objective reasons. (ceosa.org.za)
Quick checklist (table)
| Clause to check | What to expect | Red flag / action |
|---|---|---|
| Written particulars (start date, pay, hours) | Clear, dated and signed or provided on first day | Missing or incomplete — ask for BCEA particulars in writing. (saflii.org) |
| Salary & bonuses | Salary amount, pay date, formula for bonuses | “Discretionary bonus” with no KPI — request written formula |
| Hours & overtime | Ordinary hours + overtime rate | Excessive “on‑call” with no compensation |
| Leave entitlements | BCEA minimums (annual, sick, family) | Contract grants less than BCEA — raise immediately. (vula.uct.ac.za) |
| Probation / fixed term | Reasonable probation and justified fixed terms | Fixed‑term used to avoid permanent status — get reasons in writing. (saflii.org) |
| Restraint / IP | Limited scope/time/geography for restraints | Overbroad restraint — seek legal advice. (saflii.org) |
| Deductions & UIF | Only statutory or agreed deductions | Unauthorised deductions — request payroll breakdown. (legalfundi.com) |
What to do if the contract is unclear or unfair
- Ask for clarification in writing — request specific wording changes or annexures (disciplinary code, bonus policy). (smelaboursupport.org.za)
- Negotiate: many points (notice, restraint length, bonus metrics, remote‑work terms) are negotiable — especially before signing.
- Get advice: contact your union (if a member), a workplace adviser or an employment lawyer before signing restrictive clauses. See also Union Membership, Collective Bargaining and Employee Rights in South Africa Explained.
- If you suspect a statutory breach (missing BCEA particulars, unlawful deductions or unfair dismissal) you can approach the CCMA or Bargaining Council — follow the steps in Step-by-Step Guide to Filing a CCMA Claim in South Africa. (chamlabour.co.za)
Further practical resources
- If you want contract templates or checklists to compare against your offer, see Employment Checklists and Contract Templates for South African Employers and Employees.
- For negotiating remote‑work clauses and practical obligations, read Remote Work and Flexible Contracts in South Africa: Legal Considerations and Best Practices.
- If you feel overwhelmed when starting a role, remember workplace wellbeing matters — see Workplace Wellbeing Strategies for South African Employees: Managing Stress and Burnout.
Final tips (before you sign)
- Never sign blank or pre‑filled spaces you haven’t read.
- Get any verbal promise added to the written contract (start date, salary, bonuses).
- If a restraint or broad IP assignment is included, ask for a time‑limited, role‑specific clause — and seek legal input where necessary. (saflii.org)
Reading your employment contract carefully protects your rights and reduces surprises later. If in doubt, pause, ask questions and get the important points in writing — then sign.