The World Economic Forum’s Global Competitiveness Report of 2014/2015 (WEFGC report), underlines the inefficiency of South Africa’s education, health and labour structures. Overall South Africa is rated 144th out of 144 countries in terms of cooperation in labour-employer relations. This creates a highly challenging environment where the employer must manage labour as a business risk in order to ensure the productivity and sustainability of his/her business.
An employment contract is crucial in managing labour relations as it is the basis of the relationship between the employer and the employee. It defines the terms and conditions as agreed upon between the parties and regulates their relationship. Furthermore the employment contract describes rules and responsibilities to be adhered to by both the employer and the employee. The employment contract is vital to keep confusion and discontent in the working relationship to a minimum. Read more