We have compiled a list of basic legal agreements any business in South Africa will need.
Legal Agreements available on our platform http://www.lenoma.co.za/shop
Lenoma Legal Team
We have compiled a list of basic legal agreements any business in South Africa will need.
Legal Agreements available on our platform http://www.lenoma.co.za/shop
Lenoma Legal Team
Here are 5 basic contract sections that you should review carefully before signing the contract.
1. The parties to the contract.
This section of the contract is important because it tells you who they are entering into an agreement with.
– Is it another person or several people? Is it a business?
– Are you signing the contract on behalf of their business or in an individual capacity?
Are the names of all parties spelled correctly?
2. The “money” terms.
This section of the contract is important because it deals with the money.
Does it clearly lay out how much a good or service will cost?
When, how much, and how long will you have to pay the other party or will the other party have to pay?
3. Jurisdiction and Governing Law.
This section of the contract explains what law applies to the contract and the location where a dispute must be brought if there is a disagreement
Jurisdictions or countries may have different laws, so knowing which law applies to your contract is critical to understanding your rights.
4. Attorney’s Fees.
Some contracts have a section that states that a losing party in a dispute has to pay the winning party’s attorney’s fees and costs. This is an important section to you because you may be able to get their attorney’s fees reimbursed if a dispute arises out of the contract and you win.
5. Signature page.
This section of the contract is so obvious that it often gets overlooked.
Did all of the parties sign the contract?
These are just a few of the sections that your potential client should carefully review prior to signing a contract. However, every section of a contract is important.
If the contract is still confusing to you, at least they still have you to review it with us or any of our partner law firms.
Get a copy any business agreement here at Lenoma Legal eShop.
There’s been an increased awareness in legal tech these past couple of years in South Africa.
And much like the rest of the world, seemingly we are catching up and with Legal Tech companies such as Legal legends, Lenoma Legal, and Legal Connection coming out trying to make legal services more accessible, is like to think we are on the right track.
South Africa also recently partook in the inaugural Global Legal Hackathon which was held at the Tsimologong Prescint.
First of, what is legal tech?
LegalTech laymen’s description of it is that it’s a term to describe the technological activities of this sector.
I.e. we are talking about technology that is made use of by a sector of the economy. Hence, LegalTech
Benefits of Legal Tech in South Africa?
1. Lowers the barrier to entry for legal protection as previously and currently confined to law firms.
2. Certain things you can do, without the need to seek counsel. The dissolution of the traditional legal business model is good news for public interest law.
3. Access to justice is a fundamental human right, but most cant afford to hire legal practitioners when the need arises due to them being expensive.
Legal Aid SA, pro bono lawyers and some independent legal organizations that defend thethe pub, provide a much needed and very great legal aid services, but the demand for legal support far outweighs the supply of legal aid services. There simply aren’t enough lawyers. Lack of finances shouldn’t be a barrier to justice.
4. There are simple applications of technology can streamline legal representation. While probono legal representatives still overtasked automating administrative tasks and referral processes frees up valuable time and can be a life changing intervention eg Legal Connection- SAs first call back Legal Service).
4. The case for use of legal tech is obvious but the market remains unaddressed. There’s a growing need for increased justice for people otherwise left behind by our legal system.
Look, lawyers aren’t going anywhere, we need them. But right now, technology and tech philanthropy have a huge opportunity it fills an existing gap in justice and legal equality.
Want to know more about legal tech in South Africa.
You can find us on Twitter
@lenomalegal or use our official hashtag #Lenomalegal
Regulation of spam in South Africa was introduced by the Electronic Communications and Transactions Act, 2002 (ECTA) and bolstered by the Consumer Protection Act, 2008 (CPA) and the recently promulgated Protection of Personal Information Act, 2013 (POPIA).
Widely considered to be of limited practical use, section 45 of the ECTA provides that recipients of unsolicited communications are able to opt-out of future communications and may request information on where their contact details were obtained.
Whilst section 45 of the ECTA represents the point of departure in any matter regarding the receipt of unsolicited communications, it will be repealed and replaced by section 69 of the POPIA once a commencement date for the latter has been proclaimed by the Presidency.
A more comprehensive set of limitations have been provided for in both the CPA and the POPIA, please see below.
Section 11 of the CPA follows in the footsteps of the ECTA by providing that you may refuse to accept, request the discontinuation of (opt-out) or pre-emptively block direct marketing communications, and that any opt-out or pre-emptive block must be respected by marketers, have their receipt confirmed in writing and that the exercise of these right must be performed free of charge.
A welcome outcome of the CPA will be the formation of a Do Not Contact Registry (DNCR) which will serve as a national database of pre-emptive blocks for both general and specific marketing advances and which will allow individuals to tailor the frequency, timing and nature of the marketing they receive (if any).
Whilst the Interactive Advertising Bureau (IAB) – formerly known as the Digital Media & Marketing Association (DMMA) – which represents a large portion of the direct marketing market, currently administers a private DNCR for its members there has been little progress on the implementation of the national DNCR contemplated in the CPA.
Signed into law in November 2013, the POPIA represents the most ambitious attempt thus far to formulate a framework for the protection of personal information, of which the limitation of unsolicited communication for the purpose of direct marketing forms a part.
Whilst the POPIA will be of limited use prior to its commencement date (and then subject to transitional arrangements), the publication of regulations by the Minister of Justice and the formation of an Information Protection Regulator, it is hoped that the mechanisms provided for in section 69 will serve to bolster previous attempts to regulate unsolicited communications.
Section 69 of the POPIA places significant limitations on the circumstances in which a party may engage in direct marketing by means of unsolicited communications by requiring individuals to have either consented to the use of their personal information (opt-in) or for there to be an existing relationship between the parties. An existing relationship between the parties is itself subject to additional limitations and does not result in a freedom to make repeated advances.
Notwithstanding the above, you will always be entitled to opt-out of future communications for the purpose of direct marketing.
Different types of employment can be found in the labour market. Make sure you know the advantages and disadvantages of each type of employment and the conditions of employment as stated in your written particulars or employment contract. This will ensure that you make a suitable career choice and help you to adhere to rules of the employer.
Written particulars of employment must be supplied when the employee commences employment. The particulars that are required are stipulated in the Basic Conditions of Employment Act.
A contract of employment is recommended as it protects both the employer and employee. A contract of employment states exactly what the service benefits will be for the employee and what rules the employee should adhere to. Both employer and employee accept the terms of employment at the beginning of employment. When a dispute arises, there should be no uncertainty about the facts to which the employer and employee agreed.
Without permanent workers, most organisations will run the risk of having too many workers resigning at their will and one day not having any employees to do good quality and quantity work. Most workers, especially those working in the formal sector of the economy, therefore enter into a permanent contract of employment with their employer. A permanent contract of employment makes provision that you are working directly for the employer and paid directly by the employer. The permanent contract of employment usually makes provision for annual leave, sick leave, maternity leave, subsidised health care, assistance to study further and contributions to a retirement plan. Sometimes such a permanent contract of employment makes provision that you can stay as long as you want on the job, depending on retirement age as set by the employer, or whether the company needs to retrench some people. In the modern world of work, employees never stay in one organisation for their whole career, but do job-hopping to climb the career ladder.
A permanent work will give you job security in that you will know you get a set amount of money per month, you can only be retrenched for operational reasons, you can establish a sense of who you are through your work (you are a plumber at company X), you can work on set tasks and have a sense of accomplishment, you build up extensive knowledge in your area, as well as relationships with people in the same field and you can establish friendships at work. The downside is that you may become frustrated with the same routine and may reach your ceiling in terms of development in the specific task. The new world of work will require from you toto keep on developing your skills in areas related to your work or even other areas, so as to enable you to become more employable.
When you receive your written particulars for employment or enter into a permanent contract of employment, make sure about office hours and other company rules, the salary, a bonus, leave available and other benefits
Part-time work means that you are permanently employed, but work less days a week or less hours a day. Many women choose to work part-time to enable them to look after their children in the afternoon. Other people choose to work part-time while they study.
Part-time employees earn a lower salary and sometimes have less power and responsibilities in the work-place, than full time employees. You will thus have to consider whether you will be able to pay for necessities if you choose this option of work.
If you find it hard to enter the labour market, take a part-time job to gain the necessary skills and experience, since this will make it easier for you to move into a full-time job.
If you work more than 24 hours as a part-time employee you should be supplied with written particulars of employment or an employment contract, so be sure that you get yours. You will receive conditions of employment such as leave and sick leave, but these would be on a pro-rata basis.
Freelance or outsourcing
If you have specialised skills, you can become a consultant for different projects for companies and earn a good income. Freelancing or outsourcing allows you to do certain projects or tasks and work from home, and occasionally report for meetings at the work place for progress updates.
People who are doing freelance work often have their own small business and is called an “independent contractor.” These contractors should be taxpayers, are allowed to work their own hours and are not entitled to receive annual or sick leave, or a bonus. However, in some cases there are grey areas in which such a contractor/consultant is regarded as an employee of the organisation he works for – this is dependent on the type of relationship between the parties, whether the person is provided with tools of trade or work equipment, the person is subject to control or direction, and o must work fixed hours or not.
Make sure that you build a portfolio of past accomplishments to prove your skills, if you want to become a contractor/consultant. Also make enquiries into the nature of the relationship with the employer, so that you can be sure what the terms of the employment will be and whether you will be regarded as an employee of the organisation and thus have service benefits, or whether you will be appointed as independent contractor.
Temporary work means that you work for a short period such as one day or a few months for an employer, or until a task is completed. Your work has a specific start date and end date.
Some temporary workers are hired by “labour brokers” to be placed at another organisation. The labour broker enters into a contract with the employee. In the past these temporary workers did not have much work benefits, because employers could appoint them without medical aid or pension benefits and thus pay less for work. The new Labour Relations Amendment Act, Act 6 of 2014, however provides for temporary work not to be longer in duration than three months after which it becomes permanent, unless the employer can provide good reasons why it should be regarded as work of a temporary nature. The labour broker must also provide the normal benefits to temporary workers, such as annual and sick leave and must pay contributions to Unemployment Insurance Fund and the Compensation Fund for them.
Temporary work provides an ideal opportunity for young people to earn money, such as during the holidays, or for those people who want to gain work experience to enhance their employability. You will also be able to test the nature of the work to be able to make a better career choice. Temporary workers have few rights and this can cause problems when you fall sick.
A casual employee is employed for a short period and works for parts of the week, for example a domestic worker that only comes in once a week for 5 hours a day. If you work more than 24 hours a week, you are seen as an employee and you qualify for proportional rights such as annual leave and sick leave. You should receive written particulars of employment when you commence employment which protects your rights as a worker.
If you do piece work, you are not paid according to hours of work, but according to the number of items you make, or tasks completed. Farm workers may for example be paid for the number of sheep sheared, provided they get paid at least the applicable minimum wage.
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But what’s the big deal about NDAs so how do you use it or for what is it for exactly and how it’ll benefit you?
There are many benefits and advantages for using an NDA:
1) The most obvious advantage of an NDA is protecting your information!
An NDA agreement allows you to agree on what information can and cannot be disclosed to others;
what each party’s obligations are in regards to the confidential information;
and how information is dealt with upon termination of the NDA.
2) An NDA agreement can allow parties to define what “confidential information” is, so that it is clear to both parties throughout their relationship what is considered confidential and what subsequently cannot be disclosed.
What type of information can be considered ‘confidential’ is endless, and it can include anything from patent ideas, test scores, employee information, passwords etc.
Setting out what is included as confidential information can save a lot of time in the event a dispute arises and a lawsuit is brought, as the judge can see whether the information disclosed is specifically listed or described in the NDA.
Drafters of the NDA can be as precise as they wish when defining what is confidential in their agreement by including an exhaustive list of specific items.
Others will want a broader, non-exhaustive list which may include language such as “all information disclosed in the course of fulfilling the purpose of the agreement”.
Drafters can also include exceptions to the prohibitions on disclosure such as information that is generally available to the public;
information obtained by a third party who is not bound by any confidentiality agreements;
where information is trivial;
information developed for the recipient independently;
information disclosed through no fault of the recipient party and information that was already known by the party before signing the NDA.
These exceptions are common in NDAs.
3) A well-drafted NDA will outline the consequences for those that breach the NDA, which will likely include a hefty monetary fine.
The party that breached the NDA can also be subject to a court order preventing them from continuing to disclose any confidential information that was protected by the NDA.
4) An NDA assures parties that information will remain confidential, and can include survival provisions requiring the party to not disclose the confidential information for a stated time period (eg. 2 years) after their relationship has ended.
– If you are considering a business deal, try to have the other party review and sign an NDA before entering into business discussions and possibly exchanging confidential information. The sooner the better!
– Pay close attention to the definition of confidential information before signing an NDA, so you are clear what information (of yours) is protected, and what information (of the other party) cannot be disclosed to others.
Hope this helps you in your business journey!
Team Lenoma Legal
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Try this out, download this NDA, find out for yourself how it works.
Not only will you be getting an updated legally binding NDA, you will also get to see our work.
Here’s the link Basic NDA
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