Monthly Salary Employment Contract with Probation Period South Africa

EMPLOYMENT CONTRACT MONTHLY SALARY WITH PROBATION PERIOD SOUTH AFRICA

Summary: You will need an employment contract if you run a business and need to employ a permanent staff member on a monthly salaried basis, with provision for a probation period.

Why do I need an Agreement of Employment? South African labour law is clear about the need for written employment terms. Section 29 of the Basic Conditions of Employment Act requires that every employee must be appointed in accordance with an employment agreement. Written terms also help to establish the employment conditions 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 salaried basis, but you want to provide for a probation period to assess whether the prospective staff member is suitable for the job, then have your template employment contract available.

See also: Employment Contract – Commission

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 and leave; termination.

What does the contract look like? This employment document can be printed onto seven pages.

What do you need to do to use the Employment Contract?

• Read the document to ensure that it suits your requirements. Make changes as required.
• Add in the relevant details as indicated as blanks in the document, sign the agreement, and get your new staff member 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 and policies, and general working conditions not covered in the written Terms of Employment.

Is an employment contract 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.

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
• Policies and Procedures

If you’re looking for examples of employment contracts you can also view our Employment Contracts Pack.

Fee free to browse the Employment Documents on our website for more employment document templates

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.

Purpose of the Employment Contract with Probation Period Clause

• The Employment Contract with Monthly Salary and Probation Period Clause is designed to ensure that the employer and newly hired employees are on the same page regarding the terms of employment.
• Provide a trial period during which the employer can assess the suitability of a newly hired employee for the job. This allows for the monitoring and evaluation of the employee’s performance regularly, which is crucial to determine whether the employee is meeting the required performance standards and whether the probationary employee will go on to become a permanent employee.
• It allows for a probationary period for a new employee to determine the suitability of the employee for the role, during which their work performance will be monitored and reviewed regularly by the line manager or employers to ensure they they are providing satisfactory service. During this period, the employee’s performance is monitored and reviewed regularly.
• A probationary period clause is included in the agreement as a legal requirement and offers a mutually beneficial arrangement for both the employer and employee. It also protects the employee from being dismissed unfairly as related to their probationary status.
• Gives the employer the opportunity to dismiss an employee should the probationer’s performance standard in relation to the applicable requirements and overall work performance not be satisfactory during probation.
• Sets a fair and clear required performance standard to and helps to actively manage expectations based on the required standard during probation.

The Importance of Continuous Performance Evaluation and Feedback

• It is important that the person evaluating new employees performance during the probationary period is someone other than the direct supervisor or a normal co worker. This ensures that the evaluation is objective and impartial.
• The person determining whether the new hire has successfully completed probation or the employee failed their probationary period should be someone other than the direct supervisor to ensure objective and impartial evaluation of the employee’s performance.
• Continuous evaluation of the employee’s performance during the probationary period is crucial and can highlight poor work performance.
• The employer should provide regular feedback to the employee to ensure they understand the expectations and the areas that require improvement.
• The employee should be given a fair opportunity to improve, with instruction training and support offered where necessary.
• On the job training and even informal mentoring sessions can be beneficial for the employee’s development.
• The employer is required to monitor the employee’s work performance regularly during the probationary period, ensuring that the employee is meeting the required performance standards.
• This kind of employment agreement can be especially helpful to employers working for small businesses to set a clear required performance standard to all staff during probation.

Legal Requirements for Probation Period

• The Labour Relations Act requires a statutory probation period to be in place before the employer can offer permanent employment to the employee.
• The probationary status provides protection for the employee from unfair dismissal procedure to their probationary status.
• The probationary period clause also protects the employee from unfair dismissal relating to their probation status, provided that the employer adheres to the legal requirements.
• The employer must follow the required procedures and give the employee reasonable deadlines to attain performance goals if they need to dismiss the employee due to poor work performance.

Completion of Probationary Period and Misconduct Perpetrated

• Once the probationary period has been completed satisfactorily, the employee will be confirmed as a permanent employee.
• If the employee is unsuccessful during the probationary period, the employer has the right to dismiss the employee, provided that the dismissal is procedurally fair and that the required procedures have been followed.
• The interview process is essential to ensure that the employee’s suitability for the role is properly assessed.
• If the employee commits misconduct during the probationary period, the employer is required to follow the required procedures and ensure that the misconduct is dealt with fairly and appropriately. The appropriate sanction should be determined based on the nature of the misconduct.

Poor Performance or Non-Performance

• The employer must give the employee reasonable deadlines to attain performance goals before dismissing them.
• It is also essential to follow the required procedures and ensure that the dismissal is procedurally fair.
• The probationary status provides protection for the employee from unfair dismissal related to their probationary status.

Benefits of Using the Employment Contract with Probation Period Clause

• Using this Employment Contract with Monthly Salary and Probation Period Clause ensures legal compliance, clear communication, and protection for both the employer and employee.
• It provides a structured approach to measure performance, develop skills, and provide support where necessary.
• This can help to avoid disputes and deprive employees of their legal rights.
• It is good practice for employers to use probationary periods for new employees. It ensures that the employee is a good fit for the job and that the employer has legal obligations to follow.
• Completed probationary periods indicate that the employee has successfully completed the evaluation and is suitable for continued employment. On the other hand, unsuccessful probation periods may lead to the dismissal of the employee.
• Regular performance reviews and monitoring help to ensure that the employee meets the required performance standards.

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