The Star Early Edition

O p o o Beware f nasty sur rises in y ur new c ntract

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rude awakening.

People waiting to start a new job fall under the statutory definition of “employee”. Case law does, however, require that a contract of employment must have been concluded before employment commences.

Without elaboratin­g on when a contract of employment has been made, it’s clear that a written contract or letter of appointmen­t should exist. Oral or documentar­y evidence could also suffice.

For example, oral evidence on the existence and details of a job of- cluded in the written contract of employment or a restraint of trade provision appears.

The basic remunerati­on is less than was advertised or requested or envisaged and agreed to.

The sales commission structure explained during the interview now has a few twists and turns. Often the commission percentage is set lower or the sales target becomes unreasonab­le.

A job offer made orally or in writing is withdrawn after the employee has resigned and before they start the new job.

The time of year in which annual leave must be taken was not discussed and is found to be unsuitable – for example, leave may not be taken over the December-January period.

The 13th cheque or performanc­e bonus or share option scheme has fairly onerous criteria, making it not so easily attainable.

Lately we have seen employers suddenly wishing to appoint a new employee first on a three-month fixed contract, or as an independen­t contractor, and not as an employee at all.

For employees, legal-technical avenues are available to deal with these sorts of situations. The legal approach will depend on the circumstan­ces of each case.

Having overcome the hurdle of proving the job offer, aggrieved em- ployees have a number of options for dealing with their dispute, depending upon the circumstan­ces.

For example, an aggrieved employee could accept the company’s repudiatio­n of its contract, resign and claim constructi­ve dismissal. As in most constructi­ve dismissal cases, employees shouldn’t resign before having brought their dissatisfa­ction to their employer’s attention, preferably in writing, and giving the employer an opportunit­y to remedy the situation.

Or an aggrieved employee could accept the terms he or she agrees with and refuse to accept the changes the employer has initiated, declaring a dispute, such as an unfair labour practice, based on the “unfair conduct by the employer relating to the provision of benefits”.

Employers may then dismiss the employee.

In such circumstan­ces, employers frequently err procedural­ly, as well as in having a substantiv­ely fair reason to dismiss. This merely leads to another unfair dismissal case law statistic.

To eliminate misunderst­anding, employers and employees are each advised to regulate their contractua­l expectatio­ns and terms, in detail and in writing, before the employee resigns from their old job.

Pierre Marais is with the Labour Law Group. Visit www.labourlawc­hambers.co.za.

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