The Assignment Of Employment Agreement is a crucial legal document used in South African business operations when there is a need to transfer an employee's employment contract from one employer to another. This typically occurs during corporate restructuring, company acquisitions, or internal reorganizations. The document ensures compliance with South African labor laws, particularly the Labour Relations Act 66 of 1995 and the Basic Conditions of Employment Act. It addresses the transfer of employment rights and obligations, maintains continuity of service, protects employee benefits, and ensures proper handling of accrued entitlements. The agreement is essential for maintaining legal compliance while facilitating smooth business transitions and protecting the interests of all parties involved in the employment transfer process.
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1. Parties: Identifies the current employer (Assignor), new employer (Assignee), and the employee whose employment agreement is being assigned
2. Background: Sets out the context of the assignment, including the original employment relationship and reason for assignment
3. Definitions: Defines key terms used throughout the agreement
4. Effective Date: Specifies when the assignment takes effect
5. Assignment and Assumption: Details the transfer of rights and obligations from current employer to new employer
6. Employee Acknowledgment: Employee's consent to the assignment and acknowledgment of terms
7. Continuation of Employment Terms: Confirms that existing employment terms and conditions remain unchanged
8. Obligations of the Assignor: Current employer's responsibilities before and after assignment
9. Obligations of the Assignee: New employer's commitments and responsibilities
10. Employee Benefits and Entitlements: Confirmation of continued benefits, leave, and other entitlements
11. Representations and Warranties: Statements of fact and guarantees by all parties
12. Governing Law: Confirms South African law governs the agreement
13. Dispute Resolution: Process for resolving any disputes arising from the assignment
14. Signatures: Execution clause and signature blocks for all parties
1. Transfer of Records: Details the transfer of employee records and data protection measures - include when significant personnel files are involved
2. Restraint of Trade: Transfer of existing restraint obligations - include if original agreement contains restraint provisions
3. Intellectual Property: Assignment of IP rights and obligations - include if employee role involves IP creation
4. Integration with Existing Policies: Details how employee will integrate with new employer's policies - include if significant policy differences exist
5. Transition Period: Provisions for a handover period - include if complex role requires transition
6. Outstanding Liabilities: Handling of existing claims or liabilities - include if there are pending issues
7. Commission/Bonus Structures: Treatment of variable pay components - include for sales or bonus-eligible positions
1. Schedule 1: Original Employment Agreement: Copy of the current employment agreement being assigned
2. Schedule 2: Employee Benefits Summary: Detailed list of current benefits and their continuation terms
3. Schedule 3: Outstanding Entitlements: Statement of accrued leave, bonuses, or other benefits
4. Schedule 4: Job Description: Current role description and responsibilities
5. Appendix A: Required Statutory Declarations: Any mandatory forms or declarations under South African law
6. Appendix B: Transfer Timeline: Detailed timeline of the assignment process and key dates
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