How to protect your business with the right contracts

In this article you will learn about:

• What the CCMA is

• How to protect your business

• The right contracts for your business

• Where to find help for CCMA related matters

What the CCMA is

Labour disputes in South Africa is dealt with by the Commission for Conciliation, Mediation and Arbitration (CCMA). This is a statutory body whose main function is to promote social justice and economic development by resolving workplace disputes. The CCMA’s services range from conciliation and mediation to arbitration. These help all parties in dispute resolution without having to resort to expensive court action.

How to protect your business

As a small business owner, having the right contracts in place can help protect your business from CCMA disputes. These are legally binding agreements that outline the terms and conditions of a business relationship between you and your employees. E.g. If you run a plumbing business and you expect your employees to be available for after-hours emergency calls, you will be required to include standby-hours and pay in your employment contract so that potential employees know what is expected when they agree to your employment offer.

The right contracts for your business

Ensuring you have the right contracts in place means consulting an attorney who specializes in contract law. The attorney will review existing contracts and advise on the drafting of new contracts to deal with specific needs of your business. Small business owners must ensure that all contracts are properly signed and dated, and that they include understandable language that defines the rights and responsibilities of all parties involved.

Specific contracts of a small business will depend on the nature of the business along with the type of relationships they have with clients, employees, service providers and stakeholders.

Here are some types of contracts you should consider putting in place.

1. Employment Contracts

2. Service Contracts

3. Non-Disclosure Agreements (NDAs)

4. Partnership Agreements

5. Vendor Agreements

6. Lease Agreements

Where to find help for CCMA related matters

If you have been taken to the CCMA, you can find help in several ways. Consult with industry associations, chambers of commerce, and trade organizations to obtain advice and support. You can also get assistance from attorneys and business consultants, who can provide specialized advisory support and services.

There are also some government agencies that provide support and resources for conflict resolution such as the Department of Small Business Development (DSBD) in South Africa. They offer services including business training, financing, counseling, and advisory support to help you succeed.

A final thought

The CCMA is an important institution that plays a critical role in dispute resolution. As a small business owner, taking proactive steps to protect your business needs to start early. This will save you financially in future and avoid reputational harm to your business.

Call to action

Being taken to the CCMA can cause your business serious reputational damage. You can learn more about how this can impact your business here.

Key Takeouts

Labour issues can crop up at any time and once it reaches the CCMA it can be a long and drawn-out process. Take the time now to ensure you protect your business by having the appropriate and relevant contracts in place.

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