Question

NAMIBIA, AFRICA COMPANY LAW QUESTION

Read the following scenario then draft the contract of employment.

Rita Dominic is a 27 year old Namibian Female who studied medicine at the University of Namibia, School of Medicine, Hage Geingob Campus from 2015 to 2019 respectively of which she graduated with flying colours. Rita was retained by Rhino Park Private Hospital to do her practical attachment there. Rita’s immediate supervisor was very impressed with how quick Rita excelled at her practical training and has recommended Rita for employment on permanent basis. The position which Rita is to fill is of head nurse and she will be granted ‘’benefits’’ afforded to any employee as stipulated in the Namibian Labour Act 11 of 2007.

Instruction: Rhino Park Human Resource officers heard that you are a commercial law expert and asked you to draft Rita’s employment contract (including her offer) with all relevant clauses. 

Answer 1

THIS AGREEMENT is made on this…………… day of…………… BETWEEN University of Namibia, (hereinafter called the “employer”) of the one part AND Rita Dominic, (hereinafter called the “manager”) of the other part.

WHEREAS

1. The employer wants to appoint a suitable person to work as manager for his business concern; and

2. Rita, the party of the other part, has agreed to serve as manager of the employer for his business concern.

NOW THIS AGREEMENT WITNESSES as follows:

1. The manager shall work as such for a term of…………… years from the day of…………… at…………… or any other place as desired by the employer.

2. The manager shall give his whole time and attention to the said business and shall use his best endeavour to improve and expand the same and shall in all respects diligently and faithfully obey and observe all lawful orders and instructions of the employer in relation to the conduct of the said business and shall not without his consent divulge any secrets or dealing thereto.

3. The manager shall keep at the place of business at…………… proper books of account showing all goods and moneys received and delivered and disbursed by him with necessary particulars of all such transactions and shall duly account for all moneys belonging to the employer and coming into the hands or power of the manager and shall forthwith pay the same to the employer or his bankers for the time being except only such moneys as the manager shall be authorised by the employer to retain for immediate requirements of the said business.

4. The employer shall pay to the manager during the continuance of his engagements and provided he shall duly observe and perform the agreement herein on his part contained the salary of …………… per mensem on the first day of every calender month commencing from the first day of…………… without any deduction except such as he will be bound to make under the Income-tax law for the time being in force, and shall also pay the manager at the end of each year during the aforesaid period a further sum equal to 5 per cent on the gross sale return for the said year (or on the net profits of the said business for the said year (if any) after making such deductions as are properly made according to the usual custom of the said business in the estimation of net profits) provided always that upon the death or termination of the engagement of the manager before the expiration of the said period of …………… years/ the employer shall forthwith pay to him or his heirs, executors, administrators or other legal representatives, as the case may be, in respect of the services of the manager of the whole or any part of the current month a due proportion of the salary of …………… per mensem together with such further sum in lieu of such percentage as aforesaid as shall bear the same proportion to the estimated gross return (net profits) for the then current year as the part of the said year during which he has served, shall bear to the whole year, the gross return (net profits) being calculated on average of the past three years.

5. The employer shall during the continuance of the manager’s engagement provide him with a suitable furnished house for residence free of rent, rates and taxes (except the charges for electricity consumed by him or of extra water used by him) and the manager shall reside in the said house.

6. The manager shall make such tour as may be necessary in the interest of the said business or as he may be directed by the employer to make and the employer shall pay him all reasonable expense actually incurred in undertaking such tours (or a travelling allowance at per mile for all journey by road and first class fare for journeys performed by rail and a halting allowance of …………… per diem when a halt of not less than 8 hours is made at one place).

7. The manager shall be entitled during his engagement to leave on full pay for a period equal to I/IIth of the period of service rendered and to a further leave on half pay in case of illness or in capacity to be proved to the satisfaction of the employer for a period of 15 days in one year.

8. Either party hereto may terminate the engagement of the manager at any time before the expiration of the said term of……………years on giving or sending by registered post to the other party three calendar months, notice in writing, such notice to be given or sent in the case of the employer to his house at …………… and in case of the manager to his place of business or residence provided by the employer and on the expiration of the said three months from the date of giving or posting such notice, 186 PP-DP&A the said engagement shall terminate provided that the employer may terminate the said engagement at any time on payment of three months’ pay in advance in lieu of such notice as aforesaid.

9. If the manager at any time willfully neglects or refuses or from illness or other cause becomes or is unable to perform any of the duties under this agreement, the employer may suspend his salary (and sum by way of percentage) during such neglect, negligence or inability as aforesaid and may further immediately terminate the engagement of the manager without giving any such notice or making such payment or salary in advance as hereinbefore provided.

10. The manager will at his own expense find and provide two respectable sureties to the amount of …………… each for his good conduct and for the due performance by him of this engagement and if he fails to do so for a period of three months from this date, the employer may terminate his services forthwith. IN WITNESS WHEREOF, etc