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CONTRACT OF EMPLOYMENT

This is only a draft contract of employment and covers most aspects as laid down in the Basic
Conditions of Employment Act, no 75 of 1997 and Sectoral Determination 14: Hospitality
Sector, South Africa dd 15 May 2007. You may change this contract to suit your conditions
but it cannot contradict the Act.

All hospitality institutions, including accommodation establishments, are subjected to the Basic
Conditions of Employment Act, no 75 of 1997 and the Hospitality Sectoral Determination 14 dd
15 May 2007. The Ministerial Determination for Small Businesses dd 15 November 1999 is also
applicable; this gives certain relief for businesses with ten (10) or less employees in regards of
the Act on Basic Conditions of Employment. This implies that all employees must be employed
it terms of this act and that they are in service of the accommodation establishment and not with
you, as a domestic servant. As soon as an employee performs any task related to a paying guest
the Hospitality Sectoral Determination 14 are applicable and the employees must be paid as
hospitality workers and not as domestic workers.

CONTRACT OF EMPLOYMENT IN NAME AND ADDRESS OF GUEST

HOUSE

EMPLOYEE

Name
ID Number
Physical Address
This is important as it may influence transport, etc

APPOINTMENT

You are appointed as a general cleaner or what it may be at name of guesthouse as from date
when employee started working. The work includes general household work in and around the
premises of name of guesthouse. A short description of work may be included.

HOURS OF WORK

Working Days. Your working days are from a Monday to a Saturday (6 day week). Can be 5
days.

Hours of Work. Your working week consists of 45 hours with a maximum of 8 regular hours a
day excluding 1hour meal interval. If 5 day a week then 9 hours. If a 5 day week then you must
pay overtime for a Saturday, cover yourself.

Meal Interval. If you work for more that five (5) hours a day you are entitled to a one (1) hour
meal interval, you may split your meal interval in two or three parts. You may specify times.

Public Holidays. If necessary, you will be required to work on a public holiday. If the employee
will work regularly on a public holiday you may take out the If necessary, , , if you do not
specify this and you ask them to work on a public holiday they can bluntly refuse to work.
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Sundays. If necessary, you will be required to work on a Sunday. If the employee will work
regularly on a Sunday you may take out the If necessary, if you do not specify this and you ask
them to work on a Sunday they can bluntly refuse to work.

Night Work. If necessary, you will be required to do night work. If the employee will do regular
night work you may take out the If necessary, if you do not specify this and you ask them to do
night work they can bluntly refuse to work. Night work is between 18:00 and 06:00.

Overtime. If necessary, you will be required to work overtime, regarding overtime the
following are applicable: If the employee will work regularly overtime you may take out the If
necessary, if you do not specify this and you ask them to work overtime they can bluntly refuse
to work.
 A maximum of 15 hours overtime a week may be worked 12hrs if more than 10
employees.
 And not more than 4 hours a day.

Your ordinary hours of work and overtime will be averaged over four (4) months periods. Only
if you want to

Rest Periods:
 You are entitled to twelve (12) consecutive hours rest period between working
days. For a “living in” employee it is 10hrs.
 You will be entitled to a weekly rest period of thirty-six (36) consecutive hours
including a Sunday or sixty (60) hours fortnightly.

WAGES AS FROM 1 JULY 2011

Basic Wage. Your basic wage will be R10.70 ph, or R481.10 pw, or R962.20 fortnightly, or R 2
084.55 pm. Pick one. Your annual increase will be in accordance with the hospitality sector’s
minimum wage schedule.

Method of payment. You will by paid on the last working day of the week, fortnight or month,
or as you arranged with your employee. Pick one.

Method of Payment. You will be paid in cash. Or in cash and kind.

Overtime Wage. Your overtime wage will be R14.23 per hour or 1⅓ times the daily wage (for
practical purposes it may be better to use the latter). Pick one. If more than 10 workers then 1½
times, R16.05.

Sunday Wage. Your Sunday wage will be R16.05 per hr or 1½ times the daily wage. Pick one.
A minimum of 4 hrs must be paid.

Public Holiday Wage. Your wage on a public holiday will be R21.40 per hour or twice your
daily wage. Pick one. A minimum of 4 hrs must be paid.

Night Work Compensation. You will be paid an allowance of R as settled with the employee,
may be the same as overtime, or by reduction of working hours.

Pay Increase. You will get an annual pay increase on 1 July.

Deductions from Wages:

 Compulsory Deduction. 1% of your basic wage will be deducted for UIF.
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 Other Deductions. Deductions may by made for damage to or loss of
equipment, goods purchased, fees paid for hospital or medical treatment and
loans made. Not more than 25% of basic wage may be deducted. I made a 10%
deduction for my “living in” employee for boarding and lodging, not sure if the
10% is correct.

LEAVE

Annual Leave. You will be entitled to twenty-one (21) consecutive days leave on full pay,
between the moths of May and August, in respect of each twelve (12) months of employment.
No leave will be granted between the months of September and April. Your salary while on
leave will be paid at the end of your leave period. You may restrict leave between certain
periods; this is entirely up to you. If you do not specify that leave, pay will be paid at the end of
the leave period then it must be paid at commencement of leave.

Sick Leave. You will be entitled to 36 days, if they work a 5 day week then 30 days fully paid,
sick leave in every 36 months. If you are absent from work for more than two (2) days or more
than two (2) occasions during an eight (8) week period and cannot produce a valid medical
certificate, you will not be paid for these days. During the first 6 moths of work the employee is
entitled to 1 day sick leave for every 26 days worked.

Maternity Leave. You are entitled to four (4) consecutive months unpaid maternity leave.

Family Responsibility Leave. You are entitled to three (3) days paid leave during each twelve
(12) months of employment for:
 illness of your child,
 in event of death of your partner, parents, grand parents or child.
 These days may be deducted from your annual leave. Only if you have less than
10 employees.

TERMINATION OF EMPLOYMENT

Your contract of employment may be terminated only on written notice of not less than:
* one week if employed for 6 months or less
 two (2) weeks if employed for 6 months but not more than one year and
 four (4) weeks when employed for more than 1 year.

Written notice must be given either by you or by your employer.

Payments on Termination. Payments on termination of service will be made according to

Basic Conditions of Employment Act, no 75 of 1997 and Sectoral Determination 14: Hospitality
Sector, South Africa dd 15 May 2007.

Certificate of Service. A certificate of service will be given on termination of service.

TRANSPORT

You will be responsible for your own transport between your place of residence and name of
guesthouse. If you do not specify this and you provide transport regularly the employee can later
claim this. If there is no transport on a Sunday or public holiday, you must supply transport.

FOOD AND ACCOMMODATION

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You are not entitled to any food or accommodation, food received must be seen as a bonus. If
you do supply your employees with breakfast and lunch, but do not specify this they can later
claim it as a right. In case of a “living in” employee, you can say the following: Your food or
accommodation will be part of your remuneration (pay).

REVISION OF CONTRACT

This contract will be revised yearly on 1 July. This section is not really necessary.

GENERAL

Household Rules. You will at all times, while on duty, abide to the household rules as laid
down, from time to time, by the employer.

Confidential Information. You may not make known any confidential, financial or business
information to any person or institution without the permission of the owners of name of
guesthouse.

Monitoring. The owners of name of guesthouse may monitor all e-mail messages sent or
received, internet use and telephone calls made during working hours on guesthouse equipment
and at the owner’s costs.

(Name of Employer)
OWNER: NAME OF GUESTHOUSE

The employee agrees to the conditions as set out in this contract

Name in full:………………………………………………………………………………

Signature:………………………………… Date:…………………………………………
Contract of Employment