The Looming Domestic Crisis

Why Handshake Agreements Don't Make the Cut

Before the late ‘90s, almost every home I remember had either a full-time domestic worker and a gardener or, at very least, some kind of part-time help. These positions were filled by people who didn’t always stay very long. It was a casual, very informal agreement negotiated and finalized with a shake of the hand. These agreements sometimes ended as abruptly and informally as they started.

Since then, times have changed drastically. We traded handshakes for contracts and paperwork. The law of the land demanded change. Unfortunately, we found that many domestic employers are still using a similar, less formal method for employing their staff... a “blasé” way of thinking that comes with serious consequences if anything goes wrong. For reference, the Basic Conditions of Employment Act, or the BCEA, is:

"The Basic Conditions of Employment Act (BCEA), 75 of 1997, was developed in South Africa to give effect to the constitutional right to fair labor practices and to regulate the minimum terms and conditions of employment for most workers."

Accordingly, employment agreements have many standards that must be met. One of those is the cornerstone of any agreement, yet the most neglected. . . the written contract itself. The Basic Conditions of Employment Act (BCEA) firmly and rightfully expects that every employee has a written contract of employment. It’s so obvious, yet that simple, important rule has left many ex-employers scrambling because they never considered its importance and instead chose to put it off for a later date that just never arrived.

The misunderstanding?

The employment contract is not there to capture the deal.

So why is it there? Well, it’s pretty simple. It’s there to outline the basic conditions of employment, thus granting the employee certain rights within the deal. Employing someone isn’t as straightforward as it used to be 30-plus years ago, and no, a handshake isn’t good enough anymore. You, the employer, must ensure that the employee receives in writing, formally, what your employee agree to and what they will receive for that duty as compensation.

Here are some things you, as the employer, should always want to keep in mind when tackling your contracts:

• It’s important to know what is expected of you

• Show what you expect from your employee

• Show that you comply with the law

• And have your agreement within a legal framework

When the day comes—and it will—that either you, your employee, the Department of Home Affairs, or the CCMA has any query about the agreement that was supposed to be finalized before the work started, then you are going to wish you had an agreement and a copy at hand.

Trust me when I say, you don’t want to be caught without supporting paperwork. Any dispute will end with you losing money. Even if it is just the money you lose having to try and resolve the mess. And while at this stage there isn’t a linked fine for not having a contract, that doesn’t mean your employee will be compensated for your wrongdoing, at your expense.

Without a contract, the employee can dispute a range of facts that you, as an employer, will have no way of proving differently. The only backstop for disputes like this is to have a formal, signed agreement stored in whatever filing system you have on hand.

So, what are we offering? Well, MyHRhub was developed not only to simplify the whole process, but also to have an online copy archived on our servers for you to request on your HR Hub portal whenever you require it. And it’s really as simple as that.

With MyHRHub, we supply you with an updated version of an employment contract. We draw attention to all the important segments of the contract (which can be customized for your needs). Said contract will then be signed electronically on a mobile device and kept in cloud storage after ensuring that the employee also immediately gets a copy. This contract can be changed as time goes on, and it will always be there for your and anybody else’s reference.

So, in short, when you partner with us, your agreements will be legit, you won’t have to worry about forgetting about any important updates to the current labour laws in South Africa, and you won’t have to deal with tedious administration. We ensure that you get all the security you need at your fingertips.