In Labour Relations and Human Resources, the best part of the business is that you deal with people and the worst part of the business is that you deal with people. I’m reminded of an employer who trusted his driver to operate an interlink truck worth well over two million rand but he would not let that same driver drive his double-cab bakkie, go figure?
Now while you shake your head in disbelief here is another conundrum, in the majority of businesses employment costs are in the top three input costs. Let us take an example, firstly an administration clerk could be paid around R90 000-00 per year from an employer and secondly for a manager or skilled worker around a quarter of a million rand per year. Now from an employer’s perspective this is a fair amount of South African Rand.
Employers will agonise over the purchase of assets, equipment and stock to this value and insure warrantees, guarantees and maintenance plans are in order however when it comes to employment of staff the agony is over the responsibility of employment and then they fail to provide the employee with a contract of employment and conditions of service, how strange! From our domestic employees to small and medium businesses the due diligence taken in safeguarding the employment relationship with a properly drafted contract is often absent and then we wonder why things go pear shaped when the initial honey moon period is over.
Written particulars of employment are not only required in terms of the Basic Conditions of Employment Act but are an essential tool to manage and obtain a return on investment on the employer’s ‘Human Capital Investment’. Written correctly the parties can be not only protected but the employee’s productivity leveraged.
Interestingly enough, whilst it is common practice as far as the employment contract goes that it should be signed by both parties, the Basic Conditions of Employment Act requires merely that written particulars of employment be given to and explained to the employee, a witness to this effect would suffice.
So to avoid having clauses such as “each employee will receive 104 days leave per year and they are called Saturdays and Sundays”, get your conditions of employment contracts properly drafted by a specialist in the employment relations field.
Article compiled by Gordon Belton
Gordon Belton is a labour Relations and Human Resources Consultant, who’s Business, Rivers Consultancy specialises in payroll matters. He may be contacted at gordon@riversconsultancy.co.ca or, 0836351587