Complying with the POPI Act

The Protection of Personal Information Act (POPI Act)  protects citizens’ personal information. POPI compliance is critical for any South African business.
Private businesses and government bodies must be POPI compliant in terms of how they collect, use, store, or share a person’s personal information. The POPI Act applies to any person or organisation that keeps any type of record relating to the personal information of any person. POPI Compliance is key in ensuring your business’ overall legal health.
This legal flow will guide your organisation through understanding and complying with the POPI Act.
You can view our other compliance products here, or generate your own POPIA compliance manual here.  The content of the POPI Act can be found here.

Letter of Demand for Overdue account (Final)

If someone owes you money for goods or services, you can use this letter as a final letter of demand to request payment, failing which you will be taking legal steps to recover the payment. This letter should come after you have sent the debtor a first letter of demand.

End-user License Agreement

An End-user License Agreement (EULA) acts as a contract between a software developer or licensor and the end-user. It grants the user a license to use a developer’s software and limits the developer’s obligations. Before installing or accessing any software, the user must agree to the conditions of the EULA. For purposes of this document we assume you are the software developer who will share the EULA with the user company.

POPIA Compliance Manual

A POPIA Compliance Manual sets out the rules and procedures relating to the processing of personal information in your business. Businesses are not required to have a POPIA Manual in the same way that PAIA requires a PAIA Manual. However you should have a privacy policy for your business, and it would be best practice to have a POPIA Manual as a guide.

POPI Employee’s Consent

The POPI Act requires you to get consent from your employees to hold their personal information. This legal flow walks you through the questions necessary to complete a POPI employee consent form. You can attach this consent form to the employee’s contract which will ensure that you remain POPI complaint.

To understand the other compliance requirements under the POPI act, you can chat to our compliance bot here.  If your organisation doesn’t have a POPI Compliance Manual yet, you can generate one here.

POPIA Data Privacy Policy

This Data Privacy Policy outlines the scope of the information that will be collected by your business, where and how the information will be collected, and how you will ensure the information is kept confidential and secure. The POPI Act requires you to have a Data Privacy Policy that is reviewed every year.

PAIA Manual Template for Private Bodies

The Promotion of Access to Information Act (PAIA) allows people to gain access to information held by both public and private bodies. Any business, including a private person, partnership or company, regardless of the size, is required by law to have a PAIA Manual that contains information about the records and information held by the body. The deadline to have a PAIA Manual available in your company workplace was 31 December 2021.

Small Claims Court Letter of Demand

If someone owes you money and they refuse to pay you, you can use the Small Claims Court to lodge a claim against the person. The benefit of using the Small Claims Court is that you don’t need a lawyer which makes it a cheaper option. But the amount of the claim cannot be more than R20 000. If you use the Small Claims Court you first need to send the person who owes you money a letter of demand.

Letter of Demand for Overdue account (First)

This is the first letter than you will send to someone who owes you for goods or services.

Memorandum of Agreement (Non-Binding)

A Memorandum of Agreement is a document that serves as a halfway house between an oral agreement for two businesses to work in partnership and a formal contract outlining the full terms of the relationship. Businesses often use MOA’s to put into writing their current understandings about what has been agreed between them and what further details need to be worked out between them. Businesses often use MOA’s to put into writing their current understandings about what has been agreed between them and what further details need to be worked out between them.
MOA’s are usually not binding on the parties but the parties can make some elements of the MOA binding if they wish. If you want to make this MOA binding in some respects you should consult an attorney.

Written Notice of Retrenchment

If you plan on firing an employee, you have to go through a process of consultation with the employee. This is in terms of Section 189(3) of the Labour Relations Act. If the process of firing an employee is not done correctly they have rights to appeal the retrenchment at the CCMA.  The first step is giving the employee written notice of the proposed retrenchment. The law is very specific about what needs to be included in this written notice and compliance is critical.  You can find more about the process of compliant retrenchment here.

Consulting Agreement

A consulting agreement is a contract between a consultant and a client.  The agreement sets out the specific services that will be providing, as well as the timelines and remuneration for that service.  The agreement helps clarify the expectations between the two parties and serves as a contractual basis on which service or payment can be claimed.  If a consulting agreement is breached, you can approach the Small Claims Court to claim enforcement.

If you will be entering into a longer-term arrangement with the organisation you are consulting for, a Service Level Agreement may be more relevant.

Confidentiality and IP Assignment Agreement

A confidentiality and invention assignment agreement is typically signed by all founders and employees of the company. The agreement creates a confidential relationship between the parties to protect any type of confidential and proprietary information and assigns all relevant work products to the company during the signer’s employment with the company.

Share Certificate

A share certificate is a written document signed on behalf of a company that serves as legal proof of ownership of the number of shares indicated.
We will help you complete the share certificate.

Technology Assignment Agreement

A Technology Assignment Agreement is where a developer can assign intellectual property rights over a technology to a company in exchange for equity or cash.

Contract for the Sale of Goods (Seller Friendly)

This is a contract for the sale of goods between two businesses.

Website Design and Development Agreement

A Website Design and Development Agreement is a legally binding agreement between a client and designer. It contains pricing, scope of the design work, a timeline of deliverables (like wireframes or final design elements), payment schedule, intellectual property rights, and other legal terms.
The Agreement would be supplied by the developer to their client.

Safe Note Agreement

SAFE (or Simple Agreement for Future Equity) notes are documents that startups often use to help raise seed capital.
A SAFE Note is a replacement for convertible notes by creating a fair and easier-to-use contract between investors and founders.
A SAFE note acts as a legally binding promise to allow an investor to purchase a specified number of shares for an agreed-upon price at some point in the future.

Shareholder’s Loan Agreement

A Shareholder’s Loan Agreement is an agreement whereby a shareholder lends money to a company.

Starting a business

When you are starting a new business you need to understand the legal requirements to make the business compliant and profitable. The ‘Starting a business’ legalflow will guide you through each step of the journey.

Passing a company board resolution

A company resolution is a legal document that formally documents your board decisions. This legalflow guides you through the process of passing a company resolution so that you can be sure you are complying with your business and legal requirements.

UIF and the Employer

All employers who are registered at SARS for Employers Tax are responsible for paying UIF payments for their employees. This legalflow will guide you through the process of registration and your responsibilities as an employer.

Dealing with Misconduct at Work

Understanding misconduct and having clear procedures in place to deal with it ensures a fair and safe workplace for all. This legalflow guides you through the disciplinary processes ensuring you follow fair procedures and are compliant with the law.

Managing Drug Abuse at Work

Drug abuse in the workplace is a serious issue impacting employee safety, product quality and/or productivity. It is important to manage situations involving drug abuse appropriately and fairly. This LegalFlow guides you through three activities in the legal and fair process: Conducting searches for drugs; Conducting drug tests; and Declaring a drug dependency.

Permanent General Employment Contract

A permanent contract is an indefinite contract where an employee is taken on by a company until the employee no longer wishes to work there or the contract ends in termination of some sort. This contract is for a permanent general employment contract and allows users to specify job description, title, and remuneration among others. This type of employee is entitled to all forms of benefits under the Basic Conditions of Employment Act.

If you are unsure which employment contract to make use of, you can chat to our explanatory chatbot here.

A general employment contract is a comprehensive document that specifies the salary, hours of work, disciplinary codes, and other details of an employment relationship. This contract is typically signed by both parties, and is therefore legally binding. Every employee is entitled to an employment contract, no matter what industry you work in.

Contract of Employment (Permanent Flexi-hours)

A permanent contract is an indefinite contract where an employee is taken on by a company until the employee no longer wishes to work there or the contract ends in a termination of some sort. This type of employee is entitled to all forms of benefits which Maya, the Lacoona A.I., will walk you through. The difference this contact hold is the time requirements by your entity and the nature of the employment being on a flexible basis; understanding how this differs according to the law and why it is beneficial, in certain circumstances, for the company. 

A contract of employment is a comprehensive document that specifies the salary, hours of work, disciplinary codes, and other details of an employment relationship. This contract is typically signed by both parties and is therefore legally binding. Every employee is entitled to an employment contract, no matter what industry you work in. Below we provide an example of what an employment contract could look like and what items should be included in every employment contract.

Contract of Employment (Permanent Administrator)

A permanent contract is an indefinite contract where an employee is taken on by a company until the employee no longer wishes to work there or the contract ends in a termination of some sort. This type of employee is entitled to all forms of benefits which Maya, the Lacoona A.I., will walk you through. This contract applies to a permanent employment relationship for company administrators. 

A contract of employment is a comprehensive document that specifies the salary, hours of work, disciplinary codes, and other details of an employment relationship. This contract is typically signed by both parties and is therefore legally binding. Every employee is entitled to an employment contract, no matter what industry you work in. Below we provide an example of what an employment contract could look like and what items should be included in every employment contract.

Contract of Employment (Permanent Manager/Supervisor < BCEA)

A permanent contract is an indefinite contract where an employee is taken on by a company until the employee no longer wishes to work there or the contract ends in a termination of some sort. This type of employee is entitled to all forms of benefits which Maya, the Lacoona A.I., will walk you through. This contract applies to a permanent employment relationship for a manager who is earning above the Basic Conditions of Employment Act’s wage requirements. If their salary is above a certain threshold, certain conditions within the act will not apply; Maya will guide you through this. 

A contract of employment is a comprehensive document that specifies the salary, hours of work, disciplinary codes, and other details of an employment relationship. This contract is typically signed by both parties and is therefore legally binding. Every employee is entitled to an employment contract, no matter what industry you work in. Below we provide an example of what an employment contract could look like and what items should be included in every employment contract.

Contract of Employment (Permanent Manager/Supervisor > BCEA)

A permanent contract is an indefinite contract where an employee is taken on by a company until the employee no longer wishes to work there or the contract ends in termination of some sort. This type of employee is entitled to all forms of benefits which Maya, the Lacoona A.I., will walk you through. This contract applies to a permanent employment relationship for a manager who is earning above the Basic Conditions of Employment Act’s wage requirements. If their salary is above a below threshold, certain conditions within the act will apply explicitly; Maya will guide you through this.

A contract of employment is a comprehensive document that specifies the salary, hours of work, disciplinary codes, and other details of an employment relationship. This contract is typically signed by both parties and is therefore legally binding. Every employee is entitled to an employment contract, no matter what industry you work in. Below we provide an example of what an employment contract could look like and what items should be included in every employment contract.

Round Robin Resolution (Special board resolution)

The Companies Act, 2008, allows for shareholders and directors of a company to pass a resolution, without a formal meeting (“Round Robin”). This special resolution is a written  Round Robin Resolution for directors of a company and applies to areas that require special resolution as per your MOI and/or Shareholder’s Agreement. Special resolutions – also known as ‘extraordinary resolutions’ – are needed for more important decisions or those decisions affecting the constitution of a company; these will be stipulated in the aforementioned documents. 

Broadly speaking, resolutions of the board of directors and the shareholders may be adopted in one of two ways: (i) at a meeting by way of a vote (whether on anonymous voting cards, a poll, by show of hands, or otherwise); or (ii) written round-robin resolutions. One of the many innovative features of the Companies Act, 2008 (the “Act”) is that it has brought the corporate decision-making procedure in line with modern business practice by expressly allowing for the adoption of resolutions by way of a round-robin method.

Round-robin resolutions can be done, for example, by circulating the written resolutions by way of e-mail and then allowing the same document to be signed in counterparts separately. This is then sent back to the company so as to be put together to form a composite signed round robin resolution.

Always ensure that the resolution falls within the ambit of your board’s decision making capacity as contained within your founding documents.

Round Robin Resolution (Ordinary board resolution)

The Companies Act, 2008, allows for shareholders and directors of a company to pass a resolution, without a formal meeting (“Round Robin”). This ordinary resolution is a written  Round Robin Resolution for directors of a company and applies to areas that don’t require special resolution as per your MOI and/or Shareholder’s Agreement. General Round Robin Resolutions refer to a written resolution circulated amongst the directors including the supervisory board directors for their approval or disapproval and signed by the majority of the board members. In business or commercial law, an ordinary resolution is a resolution passed by the shareholders of a company by a simple or bare majority (for example more than 50% of the vote) either at a convened meeting of shareholders or by circulating a resolution for signature.

Broadly speaking, resolutions of the board of directors and the shareholders may be adopted in one of two ways: (i) at a meeting by way of a vote (whether on anonymous voting cards, a poll, by show of hands, or otherwise); or (ii) written round-robin resolutions. One of the many innovative features of the Companies Act, 2008 (the “Act”) is that it has brought the corporate decision-making procedure in line with modern business practice by expressly allowing for the adoption of resolutions by way of a round-robin method.

Ensure that the resolution falls within the ambit of your board’s decision-making capacity as contained within your founding documents.

Special Board Resolution

A special resolution is a resolution of the company’s shareholders that requires, in most circumstances, at least 75% of the votes cast by shareholders in favour of it in order to pass. Use this document for decisions that require a special resolution and for when the board came together to ratify the decision and vote on the proposed resolution.

Broadly speaking, resolutions of the board of directors and the shareholders may be adopted in one of two ways: (i) at a meeting by way of a vote (whether on anonymous voting cards, a poll, by show of hands or otherwise); or (ii) written round-robin resolutions. One of the many innovative features of the Companies Act, 2008 (the “Act”) is that it has brought the corporate decision-making procedure in line with modern business practice by expressly allowing for the adoption of resolutions by way of a round-robin method.

Ensure that the resolution falls within the ambit of your board’s decision-making capacity as contained within your founding documents.

Ordinary Board Resolution

An ordinary board resolution is a resolution of the company’s shareholders that requires, in most circumstances, less than 75% of the votes cast by shareholders in favour of it in order to pass. Use this document for decisions that require a special resolution and for when the board came together to ratify the decision and vote on the proposed resolution. Ordinary resolutions are generally used for most decisions outside of components affecting the governance, financial, and constitution of your company.

Broadly speaking, resolutions of the board of directors and the shareholders may be adopted in one of two ways: (i) at a meeting by way of a vote (whether on anonymous voting cards, a poll, by show of hands or otherwise); or (ii) written round-robin resolutions. One of the many innovative features of the Companies Act, 2008 (the “Act”) is that it has brought the corporate decision-making procedure in line with modern business practice by expressly allowing for the adoption of resolutions by way of a round-robin method.

Ensure that the resolution falls within the ambit of your board’s decision-making capacity as contained within your founding documents.

Software Licensing Agreement

If you create software for customers, then you need to consider creating a software licence agreement to help protect you and your business. A software licence agreement details how and when the software can be used, and provides any restrictions that are imposed on the software. A software licence agreement also defines and protects the rights of the parties involved in a clear and concise manner.

Generally, a licence agreement is enclosed within the software package, and can’t be accessed by the purchaser until the purchase is complete. Licence agreements generally also contain warranty provisions and patent information. Certain agreements make it necessary for the purchaser to sign and/or mail back the agreement. However, the purchaser can decline the software licence agreement, thus surrendering his or her right to use the software.

To put it simply, a software licence agreement is an agreement between your company and your customers for use of the software you have the rights to. It allows your customers to use your software and details exactly how they can use it. Within the software licence agreement, it will detail where customers can install it as well as how and how often it can be installed. Additionally, it should answer questions your customers may have about their ability to copy it, modify it, or redistribute it. The software’s price and licensing fees may also be detailed in this agreement. A software licence agreement is something you want to have in place to prevent or protect you from infringement of copyright law.

Contract of Employment (Fixed Term)

A fixed-term contract is a contractual relationship between an employee and an employer that lasts for a specified period. Fixed term within this context, can imply a fixed duration or a fixed outcome against which the contract will be adjudged or the performance of the employee assessed. 

A fixed term contract runs from an agreed start date and ends on a specified date or on the completion of a specific project ending the employment relationship, the duration of which should be agreed upon in advance. Fixed term employees are entitled to the same rights and benefits as those of permanent employees depending on the time frame of the contract length. This form of contract is legal provided that it is used for the intended purpose of fulfilling a short term assignment.

Make sure that you understand the implications of utilising a fixed term employment contract with regards to labour laws and who is an applicable employee for your organisation. The Labour relations Act states that if an employee is compensated below the legal threshold of R205 433.30 per annum a fixed term contract is limited to a period of 3 months and may only be extended if there are justifiable reasons for doing so. These may include, but is not limited to, the employee is replacing a permanent employee who is temporarily absent, is completing a specific project for a determined period, is a seasonal worker or is a student obtaining vocational training. It is also provided that should the contractor be employed for longer than 3 months without justifiable reason, this employee would be deemed to be permanent and would be entitled to all the rights and benefits of a permanent employee. However, it must be noted that other factors do apply.

Board: Notice of meeting

A notice of meeting is a written document that informs a board of directors and other members of a company that a shareholders meeting, or corporate action, is going to take place; A notice of meeting can be thought of as an invitation to the corporate meeting because it informs interested parties about the time, place, and date of an upcoming meeting. “Notice of a meeting” refers, in the context of board meetings, to the notice which must be given to all directors to convene a meeting for the resolution itself to be representative and to have the legal backing to be considered a decision as per your Memorandum of Incorporation (MOI). Together with the company’s MOI, the Companies Act, 71 of 2008 (“the Companies Act”) sets out the notice requirements which must be met when calling a meeting so make sure to read through these and provide your board or shareholders with the requisite time and opportunity to attend or understand.

Keep in mind, that any decision which requires board-level approval will require a resolution to action this intended change. In order for this to be conducted with the process in mind, you must first inform board members of the intention to hold a meeting. Following this, the board meeting will be conducted, minutes signed off and resolutions circulated for signing. Only then can the intended outcome be actioned. You can find a Lacoona LegalFlow called Passing a company resolution” which will walk you through this process.

 

 

 

Founders Collaboration Agreement: For idea stage startups

This Founder Collaboration Agreement is intended as a seed document that can be used as a framework for a more complex business and legal relationship. Starting a new company requires inspiring early co-founders to join you in your efforts and then quickly establishing an environment of trust where everyone works hard and fairly shares the upside of any success.

To that end, we launched the Founder’s Collaboration Agreement which is designed for a newly formed team to agree on what each founder’s shareholding should be as well as how to make sure that each founder puts a continued effort throughout the lifetime of the company in order to keep their equity stake.

The Founder Collaboration Agreement is suitable for use between two or more individuals that have agreed to work together in order to develop a business concept and/or technology. The agreement envisages that each individual shall be a co-founder of a newly incorporated company and sets out how the share capital of that company will be split. The agreement also includes share vesting provisions to cover a situation if a founder leaves the company during the vesting period. Importantly, the agreement also obliges each co-founder to transfer any and all intellectual property that has been developed as part of the collaboration to the company.

Shareholder Agreement: For-Profit (PTY) (Long)

A Shareholder Agreement is a contract between shareholders of a corporation. It specifies shareholder rights and responsibilities and includes terms on internal management, share valuation, profit distribution, dispute resolution methods, and more within a corporation. A shareholders’ agreement makes sure that the relationship between the shareholders and the directors of a company is set and agreed upon. In any business, this is a very important document because it gives a good idea of how a company will be run.

 

While each shareholders agreement is different, there are a few provisions that every shareholders agreement should have.

  1. The Board of Directors.

You need to make sure that your shareholders’ agreement says how many directors can be on the board and how many shares are needed to make a director happen. It should also say how and when a director can be removed, what their provisions are, how meetings are called, and how they vote (e.g., will each director have one vote, or will they have as many votes as the shareholder who appointed them?)

  1. Economics for Shareholders

If the company has shares that aren’t ordinary shares, the agreement should spell out how many shares each shareholder owns, what rights each share class has, how many votes each shareholder has, and what specific rights or restrictions each shareholder might have (such as call options, vesting of shares, or restraints of trade).

  1. New Shares Are Given Out.

In most cases, the agreement will stipulate that any new shares are first given to existing shareholders on a pro-rata basis. This is known as the “pre-emptive rights” of shareholders, and business owners should be aware of this right as well.

  1. The sale of shares

How a shareholder can sell his or her shares should be spelled out in the shareholders’ agreement (how they exit). When it comes to the process, notices, and timelines as well as the valuation of the property, these should be in very clear terms. The valuation of shares is very important and should be carefully thought about.

     5. Deadlock and disagreements

Disputes happen, and there will always be the possibility of different views. Shareholders who own a company can’t agree on how it should be run, so a deadlock provision is used to get them to agree. The agreement should be very clear about how to solve problems and what actions will be taken.

  1. Minority Shareholder Protection

A well-thought-out shareholders’ agreement will not only protect the interests of the majority, but also those of the minority. The goal is to come up with an agreement that builds trust and creates value for everyone. There is a lot of talk about terms like “unanimous shareholder approval” or “the approval of a specific minority shareholder” being required for certain company decisions.

  1. Anti-dilution protection

You might also want to think about including provisions about how much money can be raised so that existing shareholders don’t get diluted. This is especially true if you invested a lot of money.

 

Your Memorandum of Incorporation (MOI) is the most important of the two documents you need to keep in mind. However the MOI is public and, if there are things that the shareholders want to keep private, they should be included in the shareholders’ agreement. Make sure you know that if there is anything in the shareholders’ agreement that doesn’t agree with the MOI, it will not be valid. As a result, it is important that both documents be written in unison with a high degree of engagement and alignment.

When you write an agreement, you should think about the culture and goals of your business, as well as the terms that are important to you. People who want to write a shareholders agreement for their company or who want to review an existing shareholders agreement should get help from a lawyer to make sure the agreement is in line with their business goals and that they understand the consequences of the provisions in it.

Service Level Agreement

A service-level agreement (SLA) defines the level of service you expect from a vendor, laying out the metrics by which service is measured, as well as remedies or penalties should agreed-on service levels not be achieved. It is a critical component of any technology vendor contract. Usually, SLAs are between companies and external suppliers, but they may also be between two departments within a company.

​​The SLA should include not only a description of the services to be provided and their expected service levels, but also metrics by which the services are measured, the duties and responsibilities of each party, the remedies or penalties for breach, and a protocol for adding and removing metrics.Metrics should be designed so bad behaviour by either party is not rewarded. For example, if a service level is breached because the client did not provide information in a timely manner, the supplier should not be penalised.

Any significant contract without an associated SLA (reviewed by legal counsel found on your Lacoona platform) is open to deliberate or inadvertent misinterpretation. This SLA protects both parties in the agreement.

Non-disclosure Agreement (Mutual Long)

A Non-Disclosure Agreement is a contract used to maintain privacy in agreements where sensitive information is exchanged between two parties. This NDA has been designed to protect both parties.  If you want a Non Disclosure Agreement that only protects one party, you can find it here.

Ultimately, an NDA is designed to prevent someone from disclosing information you have shared with them with the intention of keeping the information secret.

This agreement:

More information regarding Non-Disclosure agreements generally can be found here.

Choosing the right employment contract

There are different types of employment contracts depending on whether an employee is permanent full-time, part-time, flexi-time, or fixed-term (temporary). Many employers also confuse an independent contractor with an employee. This flow will take you through a process of identifying whether a person is an employee or independent contractor, the type of contract you will need, and then help you to complete the contract.

Shareholders Operating Agreement (Short)

Shareholder Agreement is a contract between shareholders of a corporation. It specifies shareholder rights and responsibilities and includes terms on internal management, share valuation, profit distribution, dispute resolution methods, and more within a corporation.

This will generally be utilised once business operations have commenced. If you are still developing concepts and offerings, and just need a method to protect your contribution and ideas and to help manage the relationship, we would recommend utilising the Founders Agreement as this will be more appropriate for your needs. This document will be here when you are ready.

Website Terms & Conditions of Use Policy

A Terms and Conditions of Use Agreement is a set of regulations which users must agree to follow in order to use a service. Terms of Use is often named Terms of Service, Terms and Conditions, or Disclaimer when addressing website usage. This agreement sets the rules that users must agree to in order to use your website.

For any online business which sells goods or services, a strong Terms and Conditions (T&C) agreement is just as important as choosing your site theme. However, T&C documents are often met with confusion by both businesses and consumers alike. Knowing what to include and how to approach writing them can be an intimidating prospect.

Memorandum of Incorporation

The Memorandum of Incorporation, or MOI, sets out the rules governing the conduct of the company, as specified by its owners. The Companies Act imposes certain specific requirements on the content of a Memorandum of Incorporation, as necessary to protect the interests of shareholders in the company. It also provides for a number of default company rules and alterable provisions which companies may accept or alter as they wish as long as it is in line with the Companies Act.

Joint-Venture Agreement

A Joint Venture Agreement is a contract used to set up a business arrangement between two or more parties who agree to combine resources for a limited time to accomplish a particular project or goal.

Joint ventures are a way to enter markets through the partnering of commercial resources. Within joint ventures, equity positions are usually taken by the participants. Such holdings can vary substantially in size, although it is usually important to establish clear lines of management decision-making control in order to achieve success.

Independent Contractor Agreement (Extensive)

Also known as a consultant or freelancer, an independent contractor is a business or individual that is typically self-employed and provides a product or service for a customer in exchange for monetary compensation. This contract will stipulate the services needing rendering, the time requirements around them, and the compensation expected in exchange.

This Independent Contractor Agreement is a written contract that spells out the terms of the working arrangement between a contractor and client, including:

This should not be used as a mechanism to avoid providing de facto employees with rights which they are deserved of under law. Because this mechanism has been abused within South Africa, regulatory authorities are very strict about protecting the employee. Here is a general differentiation:

Independent Contractor

Employee

Independent Contractor Agreement (Concise)

Also known as a consultant or freelancer, an independent contractor is a business or individual that is typically self-employed and provides a product or service for a customer in exchange for monetary compensation. This contract will stipulate the services needing rendering, the time requirements around them, and the compensation expected in exchange.

Writing a will – A simple guide

Many people pass away without having made a will which can make it complicated for the people who are left behind to finalise their estate. Having a will means you decide who to leave your property, money and other belongings to. You also decide who will be the executor of your estate. This LegalFlow guides you through the process of drafting a will ensuring it is a legal document and will be legally binding when you die.

Applying Disciplinary Procedures (Includes termination of contracts)

As an employer, you will often have to deal with cases involving an employee’s misconduct or potential incapacity. This LegalFlow will guide you through the process of dealing with misconduct that is both ‘less serious’ and ‘more serious’ in the workplace, describing when you will need to hold a disciplinary inquiry and what solutions will be available for your business.

 

Dealing with Sexual Harassment at Work

The law requires employers to take steps, using either formal or informal procedures, to deal with complaints of sexual harassment made by employees in the workplace. This LegalFlow will guide you as an employer through both formal and informal processes ensuring you are following legal and fair procedures, that your employee feels engaged with and that your business is protected.

 

Managing Desertion

When an employee is absent from work for a period of time without informing their employer, it is called desertion. This LegalFlow will guide you as an employer through the legal steps you need to take to deal with desertion ensuring you follow fair procedures.

It is very important to distinguish between absenteeism without authorisation or permission and desertion. Absenteeism is when an employee does not show up for work at the required time and has failed to notify the employer of his reason for absence and his expected date of return. This absence tends to be short in duration. Desertion or absconding entails the employee’s intention to no longer return to work.

Managing Absence Without Leave (AWOL)

When an employee is repeatedly absent from work for short periods of time without informing their employer, it is called ‘absent without leave’ (AWOL). This LegalFlow will guide you, as an employer, through an initial assessment surrounding the situation and walk you through the appropriate legal steps which you will need to take in dealing with AWOL whilst ensuring that you follow fair procedures.

It is very important to distinguish between absenteeism without authorisation or permission and desertion. Absenteeism is when an employee does not show up for work at the required time and has failed to notify the employer of his reason for absence and his expected date of return. This absence tends to be short in duration. Desertion or absconding entails the employee’s intention to no longer return to work.

Applying Incapacity Procedures

Where an employee’s poor work performance is not their fault, for example, if they are constantly absent due to illness, then incapacity procedures should be used to deal with the employee. The process to follow is different to a disciplinary enquiry for misconduct. This LegalFlow will guide you through formal incapacity procedures ensuring you are following fair procedures.

Partnership Agreement

A Partnership Agreement is an agreement between you and your partner(s) that sets out the duties and obligations of the partners to each other and to the partnership. It establishes the rights and responsibilities of partners and the rules of a for-profit partnership. As a general rule of thumb, once operations are more established, a shareholders agreement will better dictate the terms of the relationship going forward.

Non-disclosure Agreement (Disclosing Long)

A Non-Disclosure Agreement is a contract used to maintain privacy in agreements where sensitive information is exchanged between two parties. This NDA has been designed to protect the disclosing party and should generally be used as your first option when it is only one party who has information to protect and the other is only receiving this information. Ultimately, it is designed to prevent the unlawful disclosure of confidential information.

This agreement:

Website Privacy Policy

A privacy policy is a statement contained on a website that details how the operators of the site will collect, store, protect, and utilize personal data provided by its users. The definition of personal data includes names, addresses (physical or e-mail), IP addresses, telephone numbers, date of birth, and financial information, such as debit or credit card details.

In addition to outlining how the company will use the information, it also includes how it will meet its legal obligations, and how those sharing their data can seek recourse should the company fail to meet those responsibilities

Legal Health Check

A Legal Health Check can be referred to as a current and comprehensive evaluation of the crucial legal elements of your business. It provides you with several questions that help you understand your legal successes and pitfalls from the point of view of an external expert. This involves a comprehensive diagnostic on legal upkeep, regulation adherence and compliance within your business, and a report highlighting any potential exposure to risk or liability that you might have. The report will define the strength of the business while pointing out ways of improving your legal landscape.

The area of questioning include:

Business Formalisation and Structuring

Director Relationships and Corporate Governance

Fundraising and Financing

Intellectual Property

Website management

Employment and Labour management

Supplier chain stakeholder management

Property

 

Managing Alcohol Dependency at Work

Alcohol abuse in the workplace is a serious issue impacting on employee safety, product quality and/or productivity. It is important to manage situations involving alcohol abuse appropriately and fairly. This LegalFlow guides you through three activities: Conducting searches for alcohol; Conducting alcohol tests; and Declaring an alcohol dependency, ensuring you are following legal and fair procedures.

Reporting an accident to Workmen’s Compensation

The Compensation Fund provides compensation for workers who get hurt at work, or sick from diseases contracted at work, or for death as a result of these injuries or diseases. Employers have to pay into the Compensation Fund once a month and report any injuries sustained by an employee during the course of their work and/or any diseases contracted at work. This LegalFlow describes the process of reporting an injury or disease to the Compensation Fund, and guides you through the forms that you need to complete and submit.

Holding a Disciplinary Inquiry

In cases involving more serious misconduct, or when the behaviour has been consistent, an employer will need to hold a formal disciplinary enquiry. If you don’t follow correct procedures, the sanction, including the dismissal of an employee, could be regarded as unfair. This LegalFlow will guide you through the formal disciplinary enquiry ensuring fair procedures are followed.

Grievance Procedures in the Workplace

A grievance is any complaint that an employee might have as a result of a workplace issue. Employers should have a grievance procedure in place to deal with any grievances raised by employees. This LegalFlow guides you as an employee through a grievance procedure, helping you to understand what you need to do to lodge a grievance and the steps your employer should take to respond to the grievance.

Understanding Misconduct and Incapacity

It is important that business owners and managers have a clear understanding of the difference between misconduct and incapacity and how to respond to these situations in the workplace. This LegalFlow describes the different types of disciplinary actions, the evidence you need to prove misconduct or incapacity, and what procedures to follow.