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Ten Tips for Making Solid Business Agreements and ContractsGet it in writing.Keep it simple.Deal with the right person.Identify each party correctly.Spell out all of the details.Specify payment obligations.Agree on circumstances that terminate the contract.Agree on a way to resolve disputes.More items...
The main pieces of employment legislation, chief among which are the Labour Relations Act 66 of 1995 (LRA) the Basic Conditions of Employment Act 75 of 1997 (BCEA) and the Employment Equity Act 55 of 1998 (EEA), apply to employees and not independent contractors.
Often Independent Contractors are completely unaware that they are not Employees as defined in South African labour legislation and therefore unprotected by labour legislation.
Because you are an independent contractor, PRN ON Demand will not withhold or make payments for social security, make unemployment insurance or disability insurance contributions, or obtain workers' compensation insurance on your behalf.
The Labour Relations Act applies to all employers, workers, trade unions and employers' organisations.
How do I create an Independent Contractor Agreement?State the location.Describe the type of service required.Provide the contractor's and client's details.Outline compensation details.State the agreement's terms.Include any additional clauses.State the signing details.
Here are some steps you may use to guide you when you write an employment contract:Title the employment contract.Identify the parties.List the term and conditions.Outline the job responsibilities.Include compensation details.Use specific contract terms.Consult with an employment lawyer.Employment.More items...?
Payroll refers to the tasks an employer must execute to ensure employees are paid accurately and on time. An independent contractor is not an employee; therefore, he's not paid through the payroll.
The other contract (Independent contractor) is a Contract for Service, and is usually a contract where the contractor undertakes to perform a specific service or task, and upon completion of the agreed service or task, or upon production of the result agreed upon, the contractor will be paid.
Employees in South Africa are entitled to certain minimum employment benefits, while independent contractors are not. Subject to some exclusions, all employees are entitled to a number of statutory minimum entitlements and basic conditions of employment.