Commissioned, with probation
Summary A business employing a permanent staff member on a commissioned basis, with provision for a probation period, should use a written contract of employment to agree on the commission structure and generally establish the terms of employment.
Why do I need a Contract of Employment? The requirement for a written contract of employment in South African labour law is clear. Section 29 of the Basic Conditions of Employment Act requires that every employee must be appointed in accordance with a written contract of employment. A written employment contract also helps to establish the parameters so that the employee knows what his/her rights and responsibilities are.
Who should use an Employment Contract? If your business employs staff on a commission basis, and you want to provide for a probation period to assess whether the prospective employee is suitable for the job, then a written employment contract should be considered. If there’s no probation offered, then consider the Commission-based Employment Contract with no Probation period included.
What does the agreement say? This Agreement of Employment consists of: the employer and employee’s details; commencement of employment and probation period; remuneration; pension and medical aid; employee’s duties; working hours; leave; termination.
What does the contract look like? This sample employment agreement, including the commission-based remuneration schedule, can be printed onto ten pages.
What do you need to do to use the Employment Contract?
- Read the terms of the employment document to ensure that it suits your requirements. Make changes as required.
- Add in the relevant details as indicated as blanks in the employment agreement, sign the document, and get your new employee to sign as well.
- Note – it is also advisable to implement a set of Policies and Procedures in your workplace, detailing various other company procedures, policies and general terms of employment not covered in the Employment Contract.
Are the Terms of Appointment still valid if the employee doesn’t sign it? Yes, it is. It is clearly preferable for the employee to sign the terms of employment. But if he/she refuses to sign it, the employment contract remains valid.
My employee can’t read or write. How do I get him/her to sign the employment contract? When a person is illiterate, s/he can “mark” a document, eg with an “X” or a fingerprint, and South African law recognises this as being his/her signature. But make sure that the terms of the agreement are clearly explained before requiring him/her to mark the document.
Appointing a new employee – what documents do I need? When you’re appointing a new employee the following documents may be considered:
- Employment Contract (this is a statutory requirement)
- Job Description
- Employee Secrecy Agreement
- Restraint of Trade Agreement
- General Policies and Procedures of Employment
If you’re looking for examples of employment contract templates, then have a look at our Employment Contracts Pack.
Feel free to browse our Employment Documents for more sample employment agreements and documents.
Also known as: Contract of Employment; Conditions of Employment; Employment Agreement; Terms and Conditions of Employment; Commission-based Employment Contract; Terms of Appointment; Commission Agreement
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