Section 29 of the Basic Conditions of Employment Act requires every employer to give an employee written particulars of employment when they start work. That written statement must cover the parties, the workplace, the job, the start date, hours, remuneration, deductions, leave and notice. It is not optional, and it applies to every employee regardless of how short the contract or how small the business.
Note the wording though: the Act requires written particulars, not a signed contract. In practice you want both — the particulars because the law requires them, and a proper contract because the particulars alone leave out everything that protects you.
TL;DR
Required on day one, in writing, for every employee.
Must be kept for three years after termination.
An employee who cannot read must have it explained in a language they understand.
The absence of a written contract does not mean there is no employment relationship — it just means the terms are decided without your input.
Add the four protective clauses below; none are legally required, all are worth having.
The section 29 checklist
Every written statement of particulars must include:
1. The employer's full name and address
2. The employee's name and occupation, or a brief description of the work
3. The place of work, and where the employee is required or permitted to work at various places, an indication of that
4. The date on which employment began
5. The employee's ordinary hours of work and days of work
6. The employee's wage or the rate and method of calculating wages
7. The rate of pay for overtime
8. Any other cash payments the employee is entitled to
9. Any payment in kind and its value
10. How frequently remuneration will be paid
11. Any deductions to be made from remuneration
12. The leave to which the employee is entitled
13. The period of notice required to terminate employment, or the period of contract if for a fixed term
14. A description of any council or sectoral determination covering the employer's business
15. Any period of previous employment with the same employer that counts towards the employee's period of employment
16. A list of any other documents forming part of the contract, and where the employee may access a copy
Practical requirements around the document
Give it when employment begins, not weeks later.
Explain it where the employee cannot read it. If the employee is unable to understand the written particulars, the employer must ensure they are explained in a language and manner the employee understands.
Update it when terms change, and give the employee a copy of the revised particulars.
Keep it for three years after the end of employment.
One copy each. The employee keeps theirs.
The four clauses that are not required but should be there
Section 29 is a floor, not a contract. These are what actually protect the business.
1. Probation
A defined probation period with a stated review process. Probation does not remove an employee's protection against unfair dismissal, but it does allow a shorter, more appropriate process during the period, provided you have given proper evaluation, instruction, training, guidance and counselling.
Get the length right for the role — typically one to three months for junior positions, longer where the job takes time to assess.
2. Confidentiality
Protecting client lists, pricing, methods, supplier terms and anything else the employee will see. Without a clause, you are relying on general common-law duties, which are narrower and harder to enforce.
3. Restraint of trade
Restricting the employee from competing or soliciting your clients after they leave.
Restraints are enforceable in South Africa, but only to the extent they are reasonable — in duration, geographic area and scope of activity. An overreaching restraint tends to be struck down or read down, so draft it to the narrowest protection you genuinely need.
4. Intellectual property
Confirming that work created in the course of employment belongs to the company. This matters far more than most small employers realise, particularly for design, software, content and engineering roles.
Two more worth adding: a disciplinary code and grievance procedure incorporated by reference, and a clear statement of company policies the employee is bound by.
What happens if you have nothing in writing
The employment relationship still exists. A contract can be verbal or implied by conduct. Not putting it in writing does not mean there is no employment.
You are in breach of the BCEA. A Department of Employment and Labour inspector can issue a compliance order.
The terms are decided without you. In a dispute, where there is no written record, the CCMA works from what can be established — the employee's version, payslips, messages, and the statutory minimums. You lose the ability to point at an agreed term.
Your protective clauses do not exist. No restraint, no confidentiality, no IP assignment. These cannot be implied.
A misclassification risk grows. Where you have treated someone as an independent contractor with no written terms and the relationship looks like employment, the absence of documentation makes your position harder. See independent contractor or employee.
Fixed-term contracts
Fixed-term employment is permitted, but for employees earning below the BCEA earnings threshold it is regulated.
Broadly, employment on a fixed-term basis for longer than three months is only justifiable where the nature of the work is of limited duration or the employer can demonstrate another justifiable reason. Without justification, the employee may be deemed to be employed indefinitely.
The practical point: repeatedly renewing a three-month contract for the same person doing the same permanent job does not make the employment temporary. It creates an expectation of renewal, and terminating it can be treated as a dismissal.
What else the employee needs on day one
The contract is one of several things. A complete onboarding pack also includes:
A payslip every pay period, which the BCEA requires
Registration for PAYE, if you are not already registered — within 21 business days of becoming an employer
An income tax reference number for the employee, registered through ITREG or BundleReg. Without it your EMP501 reconciliation will be rejected outright
UIF registration and inclusion on the monthly UI-19 declaration
COIDA registration, required for any employer with one or more employees
A copy of the BCEA summary, which employers are required to display
See when must you register for PAYE for the registration sequence.
Frequently asked questions
What must be in an employment contract in South Africa? Section 29 of the BCEA requires written particulars covering the employer's name and address, the employee's name and occupation, place of work, start date, ordinary hours and days, wage and how it is calculated, overtime rate, other cash payments, payments in kind, pay frequency, deductions, leave entitlement, notice period, any applicable council or sectoral determination, previous service counting towards the period of employment, and a list of other documents forming part of the contract.
Is a written employment contract compulsory in South Africa? The BCEA requires written particulars of employment to be given when employment begins. A separate signed contract is not strictly required, but without one you have no confidentiality, restraint of trade or intellectual property protection, because those cannot be implied.
When must I give an employee their contract? When employment begins. If the employee cannot read the document, the employer must ensure it is explained in a language and manner they understand.
How long must I keep employment contracts? Three years after the end of the employment.
What happens if I have no written contract with an employee? The employment relationship still exists and can be verbal or implied by conduct. You are in breach of the BCEA and can receive a compliance order, and in a dispute the terms are established from payslips, messages and the statutory minimums rather than from anything you agreed.
Are restraint of trade clauses enforceable in South Africa? Yes, but only to the extent they are reasonable in duration, geographic area and scope of activity. An overreaching restraint is likely to be struck down or narrowed, so draft it to the narrowest protection you genuinely need.
Can I use fixed-term contracts to avoid permanent employment? Not reliably. For employees earning below the BCEA earnings threshold, fixed-term employment beyond three months requires justification such as work of limited duration. Repeatedly renewing short contracts for the same permanent role creates an expectation of renewal and can make termination a dismissal.
Does probation mean I can dismiss without process? No. Probation allows a shorter and more appropriate process, but the employee must still be given proper evaluation, instruction, training, guidance and counselling, and a fair procedure before dismissal.
Contracts and payroll set up together
Employment contracts and payroll registrations are one job, done once, at the point of hiring — and doing them properly on day one prevents the two problems that actually cost money: a CCMA dispute with no written terms, and an EMP501 that will not submit because employees have no tax numbers.
Smartbook handles the payroll side of hiring — PAYE, UIF and SDL registration, employee tax registration, payslips and monthly submissions. From R750 a month for one to five employees.
Last reviewed: 26 July 2026. Written by the Smartbook team — SAIPA and SAICA accredited, SARS registered tax practitioners. This article covers the payroll and statutory compliance aspects of employment. Employment contracts and restraint of trade clauses are legal documents — have them drafted or reviewed by a labour law practitioner. General guidance, not legal advice.
Primary sources: Department of Employment and Labour — Basic Conditions of Employment Act · SARS — Pay As You Earn · SARS — Budget 2026 FAQs · CCMA