THE LAW BEHIND THE HUSTLE LABOUR LAW SERIES — PART 2 Permanent Employees: If They’ve Been With You for 6 Months, So Has the Law

Let’s cut straight to it. If someone has worked for you for six months or more or the total number of days they’ve worked in a year adds up to six months, you are legally required to give them a written contract of employment. This isn’t a suggestion, it’s the law.
 
Section 12(2) of the Labour Act, 2003 (Act 651) makes it clear:
“The employment of a worker by an employer for a period of six months or more or for a number of working days equivalent to six months or more within a year shall be secured by a written contract of employment.”
 
What does that mean for you as a business owner? It means if someone keeps showing up to work for your business, week after week, month after month, they’re not “just helping.” They’re not casual. They’re not temporary. They’re permanent. That kind of arrangement comes with legal responsibilities.
Permanent employees are considered to be working under an indefinite contract. This means, they’re hired without a set end date. Even if you never wrote it down,  if they keep showing up and you keep paying them, you’ve entered a permanent employment relationship. It is the most common type of employment relationship, but also the one most mishandled by small businesses.
Here is where the risk comes in. The law doesn’t care whether you have it in writing or not, the nature of the relationship itself is enough to trigger legal protection.
Now, let’s  add Section 13(1) to the mix. It  states:
 
“The employer shall, within two months after the commencement of the employment, furnish the worker with a written statement of particulars of the contract.”
 
In simple terms? Once someone starts working for you and it’s clear they’re going to be there long-term, you must provide them with a written contract within two months. That contract must state things like job title, duties, salary, working hours, leave and how to end the contract if necessary, all outlined in Schedule 1 of the Act.
 
Here is where most MSMEs go wrong: they hire someone and promise them “we’ll figure things out,” and expect loyalty. But the moment there’s a misunderstanding, that same employee can turn to the law and the law will ask you: where is the contract?
 
Without it, you’re open to claims of unfair dismissal, unpaid entitlements and non-compliance. Even worse? You may lose credibility in the eyes of partners, regulators or investors who want to see that your team is properly structured.

 

So what’s the move? If you’ve hired anyone for six months or more or even if you’re just planning to, get it in writing. Respect their role, define the terms and protect your business. Permanent employment is about legal structure and the law is very clear.
This isn’t to scare you,  it’s to prepare you. Permanent employment comes with permanent expectations. So if you’re serious about growing your hustle into a business that lasts, stop doing trial-and-error HR. Draft that contract. Register that worker. Respect the structure.