DISCLAIMER
THE DOCUMENT PRESENTED IS A DEMOSTRATION ON HOW STUDENTS CAN
APPROACH THE ASSIGNMENT FOR LRM3701. IT IS BASED ON PRESCRIBED MATERIAL
AND EXTERNAL RESEARCH. THE DOCUMENT CONTAINS BOTH SHORT NOTES AND A
RESPONSE EXAMPLE FOR EACH QUESTION. STUDENTS ARE THEREFORE ADVISED NOT
TO COPY AND PASTE BUT USE THE DOCUMENT AS A RESEARCH GUIDE THAT WOULD
HELP THEM DRAFT THEIR OWN FINAL COPIES.
,LRM37012025 EXAM SEM 2 2025 LRM3701 2025
QUESTION 2 As a prospective labour relations practitioner, assume you have been
approached by a certain company for advice about employment contract. What
would you recommend as the content of an employment contract to that company.
[15 marks]
Employment Contract Content: Recommendations for Companies
As a future labour relations practitioner, one should guide employers and employees on
the development of employment contracts to facilitate clear and legally binding working
arrangements. Employment contracts are legal protection and agreements on mutual
expectations, which clarify the rights and obligations of both parties and minimize the
room for dispute. Written contracts are especially beneficial since they offer written proof
in case of disputes or legal complications. In South Africa, employment contracts are
under the domination of statutory demands, specifically the Basic Conditions of
Employment Act (BCEA) 75 of 1997 and the Labour Relations Act (LRA) 66 of 1995, in
order to preserve employees' minimum rights. This essay examines the substantive
aspects of employment contracts, specifically statutory imperatives, mutual duties,
protection clauses, and termination clauses.
1. Importance of a Written Employment Contract
A written employment contract is widely recognised as the most reliable method to
formalise the employment relationship. It clarifies job expectations, remuneration, and
working conditions for both parties (Bendix, 2015). By explicitly outlining responsibilities,
written contracts minimise misunderstandings and disputes. They also serve as tangible
proof of the agreement, which is critical when resolving legal challenges. Compliance with
statutory requirements ensures that employee rights are safeguarded. Implementing
comprehensive, well-drafted contracts fosters a transparent, secure, and legally
compliant workplace environment.0717513144
2. Essential Particulars of Employment
, LRM37012025 EXAM SEM 2 2025 LRM3701 2025
Section 29 of the BCEA requires that employers provide written particulars of employment
at the start of employment. Contracts should include the full names and addresses of both
the employer and employee to ensure proper identification. They must specify job title,
responsibilities, reporting lines, and work location. Contracts should also indicate the
commencement date, type of contract, and probationary period, including its duration if
applicable. Remuneration details such as salary, payment frequency, benefits, and
overtime arrangements must be clearly stated to comply with legal standards. Finally,
leave entitlements and termination procedures should be outlined to ensure adherence
to statutory obligations (Venter & Levy, 2014).
3. Reciprocal Rights and Duties
Employee contracts establish a two-way relationship, including express and implied
obligations. Employers have the obligation to offer employment, wages, a safe working
environment, and compliance with legislative requirements like UIF contributions and
BCEA requirements. Employees have the obligation to conduct their work professionally,
be loyal, abide by lawful instructions, and conduct themselves professionally (Bendix,
2015). The inclusion of such obligations in the contract avoids misconceptions regarding
duties and responsibility. Although some duties are implied through law, setting them
down in writing reinforces enforceability. In general, defining mutual obligations is fair,
accountable, and conducive to effective workplace functioning.0717513144
4. Protective and Procedural Clauses
Protective clauses safeguard organisational interests and provide procedural clarity.
Contracts should reference disciplinary codes, grievance procedures, and other company
policies. Confidentiality and restraint of trade clauses are essential for protecting trade
secrets and intellectual property. Where relevant, relocation costs and reimbursable
expenses should be specified, including circumstances under which recovery is
permitted. Disclosure of prior misconduct may also be required to ensure transparency.
Clear internal dispute resolution procedures complement statutory dispute mechanisms
under the LRA (Labour Relations Act, 1995; BCEA, 1997).