CONTRACT OF EMPLOYMENT
between
NAME OF BUSINESS UNIT (THE EMPLOYER)
and
FULL NAME OF THE EMPLOYEE (THE EMPLOYEE)
1.
COMMENCEMENT DATE
THE EMPLOYEE will commence employment on date of commencement.
2.
JOB TITLE AND GRADE
Job title and grade
3.
PLACE OF WORK
The sites and depots of THE EMPLOYER in area. THE EMPLOYEE knows and accepts that he / she may be sent
to other regions from time to time.
4.
REPORTING LINE
THE EMPLOYEE reports to the job title.
5.
JOB DESCRIPTION (attached)
6.
EXTENT OF DUTIES
Notwithstanding the job title or the duties normally carried out, THE EMPLOYEE knows and accepts that he / she
might be required to carry out other duties from time to time or when / where operationally necessary.
7.
PROBATION
7.1
Permanent employment is subject to probation.
7.2
The probationary period shall be x months.
7.3
During probation THE EMPLOYEE’s performance and / or conduct and / or compatibility and / or suitability
will be monitored and evaluated.
7.4
Should THE EMPLOYER decide that THE EMPLOYEE is not suitable for further employment, then
employment will end.
7.5
This determination by THE EMPLOYER may be made at any time during the period in 7.2 above or upon the
conclusion of that period or any time during the extension of such period.
7.6
8.
Whether or not a probationary period is extended is the sole prerogative of THE EMPLOYER.
REMUNERATION
8.1
THE EMPLOYER will pay THE EMPLOYEE on a “total-cost-of employment” basis (“TCOE”). This amount is
Rvalue per annum.
8.2
The cash component of the TCOE package will accrue to THE EMPLOYEE at the rate of one-twelfth of the
package amount per calendar month of completed service and will be payable monthly, in arrears.
8.3
Deductions shall be made in respect of UIF and PAYE and any other lawful deductions from the cash
component.
8.4
Net salary will be paid by electronic transfer to a South African bank account designated by THE
EMPLOYEE.
8.5
Calculations will be made to the end of each month but paid into THE EMPLOYEE’s bank account on the
25th day of the month. Should the 25th day fall on a Saturday or Sunday, the salary will be paid prior to the
25th. The exception to these payment dates will be in the final month of employment when THE EMPLOYER
has the right to make payment on the last day of the month.
8.6
Deductions for loss or damage caused by THE EMPLOYEE will be recoverable from salary, after an
opportunity has been given to THE EMPLOYEE to make a submission on the loss or damage or value / cost
thereof and the terms of recovery, by way of deductions from salary or any other remuneration or benefit
due. After considering the submission, if any, from THE EMPLOYEE, THE EMPLOYER’s decision in ANY
matter herein shall be final.
8.7
9.
Remuneration packages will be reviewed in March each year.
COMPONENTS OF “TOTAL COST OF EMPLOYMENT”
9.1
Full Contributory Medical Aid
9.1.1 The Group participates in optional medical aid schemes offered by Discovery Heath and should THE
EMPLOYEE choose to exercise an option THE EMPLOYEE will be entitled to become a member of
one of the schemes available, subject to the rules of the scheme. Any decision made by THE
EMPLOYEE not to join is irrevocable and therefore THE EMPLOYEE may not join at a later stage of
employment.
9.1.2 The Group reserves its right to move from Discovery Health to another medical aid company at any
stage.
9.1.3 Should THE EMPLOYEE decided to join a scheme THE EMPLOYER will be responsible for the
medical aid premium and will pay the full premium for the plan chosen by THE EMPLOYEE on behalf
of THE EMPLOYEE. This will form part of TCOE annual remuneration package.
9.1.4 In accordance with current tax legislation, a portion of the contribution made by THE EMPLOYER will
be taxed as a fringe benefit. The total taxable amount will be disclosed on THE EMPLOYEE’s IRP5
certificate.
9.1.5 Any increases in THE EMPLOYER’s contribution will not have the effect of increasing the package
but will have the effect of decreasing the cash component.
9.1.6 Gap Cover: Xelus Fusion (“gap cover”) is not compulsory for an employee on the current Grindrod
medical aid scheme.
9.2
Retirement Fund and Insured Benefit Contributions
9.2.1 Selected Benefit Salary
9.2.1.1 THE EMPLOYEE’s contributions to the Retirement Fund and to the Insured Benefits will be
based on between 80% and 100% of the TCOE package. This amount will be defined as
THE EMPLOYEE’s “Selected Benefit Salary” (“SBS”). The sum of benefit contributions,
including medical aid premiums, should not exceed 20% of THE EMPLOYEE’s annual
TCOE package amount.
9.2.2 Retirement Fund
9.2.2.1 THE EMPLOYEE will be required to join either the Grindrod Provident Fund or the Grindrod
Unicorn Provident Fund. A document giving a summary comparison of the two funds is
attached.
9.2.2.2 Both Funds are “defined contribution” schemes.
9.2.2.3 The contribution to the Grindrod Provident Fund is 17.5% (less the cost of the disability
insurance premium) of the SBS. The total contribution will be paid by THE EMPLOYER and
will form part of TCOE.
9.2.2.4 The full contribution to the Grindrod Unicorn Provident Fund is 15.5% of which THE
EMPLOYER will pay 10% (less the cost of the disability insurance premium) and 5.5% will
be deducted from salary. The 10% employer contribution will form part of TCOE.
9.2.3
Life Assurance
9.2.3.1 The current rules of both Provident Funds provide for a death benefit, as in the schedule
attached.
9.2.3.2 Should the benefit cover exceed the free cover limit (see current limits on the attached
comparison), the underwriters will request THE EMPLOYEE to provide them with a medical
report. Based on their assessment of the report the cover may be restricted or they may call
for additional premiums.
9.2.4
Disability Income Insurance
9.2.4.1 THE EMPLOYEE is also provided with insurance cover in the event of disability. The current
benefits are shown on the attached comparison schedule.
9.2.4.2 To the extent that the benefit entitlement may exceed the “free cover” limit the underwriter
may request THE EMPLOYEE to provide evidence of health. Based on their assessment of
the medical report they may restrict the cover or call for additional premiums,
9.2.4.3 The disability income benefit commences after THE EMPLOYEE has been absent from
work, due to a disability, for a continuous period of six months and provided the insurance
company accepts the claim. The benefit will cease on the earlier of recovery, death or
attainment of retirement age (60 years).
9.2.4.4 Whilst in receipt of a disability income benefit, THE EMPLOYER will continue to contribute to
the retirement fund and medical aid scheme. The SBS immediately prior to the disability will
be used to calculate the contributions.
9.2.4.5 The total premium will be paid by THE EMPLOYER.
9.2.5 Funeral Policy
THE EMPLOYEE will be provided with insurance cover in the event of death by means of a funeral
policy that cover THE EMPLOYEE and dependants. The current service provider is Richton
(Grindrod Provident Fund) and Old Mutual (Grindrod Unicorn Provident Fund).
Note: All premiums and contributions associated with 9.2.2, 9.2.3, 9.2.4, and 9.2.5 will form
part of TCOE and any increases or decreases in the rates will have the effect of increasing or
decreasing the cash component. The TCOE will remain constant.
10. BENEFITS AND ALLOWANCES
Since THE EMPLOYEE is paid on TCOE basis there are no additional or further benefits or allowances.
11. PRIVATE REMUNERATIVE WORK AND OTHER INTERESTS
11.1
Private remunerative work may only be undertaken upon prior written consent being granted by job title
11.2
Approval for undertaking private remunerative work does not imply authorisation to use company facilities,
including, but not limited to, telephones, computers, e-mail, fax, photocopier and stationary.
11.3
It is contrary to Group policy to engage in practices or pursue private interests that conflict with the
interests of THE EMPLOYER / the Group. It is therefore necessary for THE EMPLOYEE to disclose and
declare in writing all outside interests at the time of commencements of employment and any interests
which might arise during the course of employment.
12. HOURS OF WORK
12.1
Ordinary hours of work shall be from time to time, Monday to day of week. Meal intervals are excluded
from calculation of ordinary hours.
12.2
The meal interval is one hour but may be reduced to half an hour, depending on senior management’s
view of prevailing operational requirements. THE EMPLOYEE hereby consents to such reduction at any
time.
12.3
Due to the nature of THE EMPLOYEE’s position, work may be required beyond these hours.
13. OVERTIME, AGREEMENT TO WORK OVERTIME, and PAYMENT FOR OVERTIME
13.1
THE EMPLOYEE knows and accepts that he may be required to work overtime, as and when required by
THE EMPLOYER.
13.2
This contract represents an agreement to work overtime whenever required or instructed to do so.
13.3
“Overtime” means any work beyond 45 hours a week, including Sundays and public holidays.
13.4
Payment for overtime shall be at the rate of time-and-a-half if the site or office at which THE EMPLOYEE
is usually stationed often conducts business or operational activities on Sundays. The rate shall be double
if the said site or office does not often conduct business or operational activities on Sundays. Payment for
work on public holidays shall be at double-time.
13.5
Overtime (and for it to be paid) must be authorised beforehand by the job title. Emergencies need not
require prior approval.
13.6
THE EMPLOYEE is hereby made aware of the overtime threshold in the Basic Conditions of Employment
Act, which states that employees earning above a certain amount gazetted annually are not entitled to
overtime payment, though THE EMPLOYEE is expected to render service after normal hours whenever
requested and this contract of employment represents agreement to do so.

Note that the threshold changes from year to year. The new threshold will be published on the intranet
and placed on notice boards.

The reasoning for such thresholds is that senior employees and / or higher earners are compensated
to a greater degree than lower earners, whilst expected to make their labour and expertise available
after hours, given their earnings and / or seniority.
13.7
Other sections of the Basic Conditions of Employment Act nullified by the gazetted threshold:

Ordinary hours of work: in other words there is no weekly or monthly maximum.

Meal interval: no statutory right to a meal interval – this being subject to company policy only.

Daily and weekly rest period: – no statutory right to such – this being subject to company policy only.

Payment for work on Sundays: – In other words, Sundays will not attract additional payment.

Night work allowance: – In other words, night work does not attract any special allowance.

Payment for work on public holidays: In other words, public holidays will not attract additional payment.
14. ANNUAL LEAVE
14.1
Annual leave will be taken at times required or approved by THE EMPLOYER, but will usually be taken at
the end of each cycle.
14.2
Annual leave must be taken in full in respect of each cycle (12 months) and not later than 6 months into
the next cycle. Carrying over of annual leave beyond this is not allowed. Leave not taken will be forfeited.
14.3
Annual leave shall not be exchangeable for cash.
14.4
Annual leave shall be x working days per cycle.
14.5
Occasional leave will be deducted from annual leave entitlement.
15. SICK LEAVE
15.1
Paid sick leave is limited to 36 days per 36-month cycle, except that during the first 6 months of
employment sick leave is limited to one day per 26 days worked.
15.2
THE EMPLOYER requires a medical certificate that will clearly support the absence in question.
15.3
THE EMPLOYEE is required to personally contact his/her superior on or before the normal time required
to report for duty, concerning the illness.
15.4
Abuse of sick leave or absence for petty ailments will not be tolerated.
16. FAMILY RESPONSIBILITY LEAVE
16.1
After four months consecutive service family responsibility leave is due up to a limit of five days per cycle
of 12 months.
16.2
Such leave will be granted only in respect of the birth of THE EMPLOYEE’s child or the sickness of a child
and the death of THE EMPLOYEE’s parent, spouse, life partner, adoptive parent, grandparent, child,
adopted child, grand child or sibling and the hospitalisation of the spouse.
16.3
Before payment is approved THE EMPLOYER will require proof of the death, birth or illness, as the case
may be, and proof of the family connection.
17. EXAMINATION LEAVE
17.1
Leave on full pay may be granted to THE EMPLOYEE who sits for an examination in a course of study
which has been approved by job title.
17.2
THE EMPLOYEE is entitled to leave on the day of the examination and the day before.
17.3
The job title must be informed timeously, but not later than 8 weeks before the examination, of any such
examinations.
17.4
The granting of examination leave shall be at the sole discretion of the job title.
18. MATERNITY LEAVE (female employees)
Kindly refer to the maternity leave policy in this regard.
19. SEARCHING OF PERSON AND BELONGINGS
19.1
THE EMPLOYER may, at any time or place, require THE EMPLOYEE to be searched, including a body
search, within the requirements of the law, or search of clothing, bags or other items or belongings.
19.2
THE EMPLOYER may also, at any time, require THE EMPLOYEE’s residence or place of abode, or any
vehicle associated with THE EMPLOYEE, to be searched. This contract represents consent for such
searching.
20. DEEMED DESERTION
20.1
In the event that THE EMPLOYEE is absent for 5 or more consecutive days, without having successfully
contacted the job title (or job title if the former is not available), and informed the job title of the reasons for
such absence, the absence will be regarded as desertion and this contract will be cancelled.
20.2
“5 consecutive days” will include a weekend, if the weekend falls within the period of 5 days.
21. RULES AND DISCIPLINARY CODE
21.1
THE EMPLOYER will issue THE EMPLOYEE with a copy of any workplace rules and a copy of the
Disciplinary Code.
21.2
It is the responsibility of THE EMPLOYEE to familiarise himself with the content of such documents.
22. QUALIFICATIONS, EXPERIENCE AND CONFIRMATION OF COMPETENCE
22.1
THE EMPLOYEE confirms that he / she can competently carry out the job of job title.
22.2
THE EMPLOYEE confirms that the experience, skills, training and qualifications that he / she claims to
have are true.
22.3
If THE EMPLOYEE is found to have been dishonest or inaccurate in any area covered in his/her CV or
employment documents or in pre-employment interviews, this contract will be terminated.
23. CIVIL AND CRIMINAL PROCEEDINGS
23.1
This contract will be regarded as null and void, or will be terminated, if it is discovered that THE
EMPLOYEE has any civil or criminal judgments against him / her, or that there were or are civil or criminal
proceedings pending or having already commenced, that THE EMPLOYEE did not inform THE
EMPLOYER of prior to or upon employment.
23.2
In the event that civil or criminal proceedings commence against THE EMPLOYEE during the course of
employment, THE EMPLOYEE shall immediately inform the job title. THE EMPLOYER will then decide
what course of action, if any, to pursue.
24. CONFIDENTIALITY
24.1
THE EMPLOYEE, by virtue of his association with THE EMPLOYER, will have possession of, and have
access to, THE EMPLOYER’s operations, administrative and technical information (“confidential
information”) and intellectual property.
24.2
THE EMPLOYEE acknowledges that should intellectual property of THE EMPLOYER or information about
THE EMPLOYER’s operations or administrative or technical matters be given or divulged to any other
party, THE EMPLOYER could be prejudiced.
24.3
THE EMPLOYEE accordingly undertakes not to give or divulge such to any other party.
24.4
These prohibitions apply during employment and thereafter.
24.5
THE EMPLOYEE undertakes not to discuss any term of this contract with any other person without the
prior consent of the job title.
24.6
THE EMPLOYEE shall return all files, documents, equipment and property immediately upon termination
of employment or immediately upon instruction by THE EMPLOYER at any time.
24.7
The copyright on all work produced by THE EMPLOYEE within the course and scope of employment is
vested in the Group.
25. POLYGRAPH TESTING
25.1
THE EMPLOYER may require THE EMPLOYEE to undergo a polygraph test at any time on any subject.
This contract constitutes THE EMPLOYEE’s consent to undergo such test or tests.
25.2
A requirement or instruction to undergo such a test or tests is hereby deemed reasonable and a refusal to
undergo such a test shall be considered unreasonable and/or a breach of this contract, entitling THE
EMPLOYER to cancel the contract.
25.3
THE EMPLOYEE hereby confirms that the results of a polygraph test may be used as evidence of the
commission of any act by THE EMPLOYEE.
25.4
The choice of polygraph specialist or practitioner shall be the prerogative of THE EMPLOYER.
26. BREATHALYSER TEST AND BLOOD TEST
26.1
THE EMPLOYER may require THE EMPLOYEE to undergo breathalyser or blood tests whenever THE
EMPLOYER chooses, at its sole discretion. This contract constitutes THE EMPLOYEE’s consent to
undergo such test or tests.
26.2
A requirement or instruction to undergo any such test is hereby deemed reasonable and a refusal to
undergo such a test shall be considered unreasonable and/or a breach of this contract, entitling THE
EMPLOYER to cancel the contract.
27. RETIREMENT
27.1
The retirement age is at the end of the calendar year in which THE EMPLOYEE turns sixty (60).
27.2
THE EMPLOYER may, at its sole discretion, extend the service of an employee beyond retirement date
but THE EMPLOYEE acknowledges and accepts that employment beyond retirement age does not
constitute extended permanent employment and that employment may be terminated by THE EMPLOYER
at any time after retirement age.
28. NOTICE
28.1
In the event of termination of employment initiated by either party, notice must be given in writing and shall
be one week during the first six months of employment, two weeks during the second six months and four
weeks thereafter.
28.2
If THE EMPLOYEE does not give or serve proper notice, THE EMPLOYEE acknowledges and accepts
that THE EMPLOYER may deduct money equivalent to that which it would have paid THE EMPLOYEE
had THE EMPLOYEE given and served proper notice from any remuneration or other moneys or benefits
due. This contract constitutes authorisation for such deduction or set-off or recovery to be made.
29. TRAINING COSTS
29.1
Should THE EMPLOYEE leave THE EMPLOYER / the Group during the 12-month period post the
completion of training, for whatever reason excluding retrenchments, THE EMPLOYEE shall re-pay the
costs of any training paid for directly by THE EMPLOYER / the Group, on a pro-rata basis, calculated at
one twelfth of the total, for every month worked.
29.2
THE EMPLOYEE understands and accepts that such cost may be recovered by THE EMPLOYER from
any termination payments or benefits that may be due.
30. POLICIES, CODES AND PROCEDURES
THE EMPLOYEE acknowledges that he is aware that there are various policies, codes, and procedures that he is
required to familiarise himself with. These include but are not limited to:

Dress Code

Grievance Procedure

Disciplinary Code

Health and Safety Policy
These policies are available from the HR department.
31. DEFINITIONS
The definitions hereunder must be read in conjunction with the definitions as detailed in the various policies, codes,
and procedures, “confidential information” refers to the employer’s operations – including its finances and manner
and means of rendering a service to clients – as well as its administrative, technical and security information.
31.1
“private remunerative work” refers to any income-generating activity, other than rendering services to the
employer as an employee.
31.2
“operations, administrative and technical information” includes all reports, manuals, statements, budgets,
research papers, letters, emails, computer data bases, or any written record of any activity or
knowledge conveyed orally to THE EMPLOYEE.
31.3
“termination of employment” includes resignation and retirement.
31.4
“weekend or Sunday work is not special or unusual” – this means that, given the nature of the job, as well
as the demands and expectations of clients, services will have to be rendered on days other than Monday
to Friday and thus overtime will be paid at time-and-a-half and not at double time, subject to THE
EMPLOYEE being below the overtime threshold.
The remaining conditions of employment, not expressly detailed in this contract, shall be the existing policies, codes,
and procedures and the general conditions of employment as contained in the Basic Conditions of Employment Act.
This contract contains the full agreement between THE EMPLOYER /the Group and the EMPLOYEE and any
changes to it will only be applicable if reduced in writing. Any dispute arising out of this agreement will be resolved in
accordance with the various policies, codes, and procedures. Should THE EMPLOYER /the Group conditions be
silent on an issue in dispute, the relevant determination of the Basic Conditions of Employment Act will prevail.
By signature of the contract the EMPLOYEE acknowledges that this agreement has been explained to him/ her and
the he/ she fully understands and accepts the term and conditions stated herein.
SIGNED at ………………………………………………….…… on the …………… day of ………………………….. 20…….
EMPLOYEE’S SIGNATURE ………………………………………..
IDENTITY NUMBER …………………………………..
WITNESSES
1. ……………………………………………..
2. ……………………………………………..
SIGNED at ……………………………………………..…… on the …………… day of ………………………….. 20…….
COMPANY REPRESENTATIVE’S SIGNATURE ……………………………………………..
FULL NAME ……………………………………………………….. IDENTITY NUMBER …………………………………..
Please attach supporting documents as required.