Document background
The Employment Memorandum of Understanding (MOU) is a preliminary employment agreement commonly used in South African business contexts to establish the basic framework of an employment relationship before finalizing a formal employment contract. This document is particularly useful during recruitment and negotiation phases, especially for senior positions or specialized roles where terms may need to be discussed and refined. It includes essential elements required by South African labor legislation while maintaining flexibility for both parties to negotiate specific terms. The MOU typically covers key aspects such as job responsibilities, compensation, benefits, working conditions, and compliance with relevant South African employment laws, serving as a foundation for the subsequent formal employment agreement. It's designed to protect both employer and employee interests while ensuring alignment with South African legal requirements including the Labour Relations Act, Basic Conditions of Employment Act, and Employment Equity Act.
