The dangers of acting contracts

WHAT DOES IT MEAN TO BE “ACTING”?
“Acting” refers to a situation where an employee temporarily assumes the responsibilities of another position, mostly higher than position currently held by the incumbent. Acting appointments must be approved by a Senior Manager, Director or CEO.
HOW LONG CAN AN ACTING ARRANGEMENT LAST?
Generally, acting appointments should not last more than six (6) months. Only in exceptional cases may acting appointment be extended for one or two months beyond the six months threshold, for e.g. to allow a new appointee the time to serve their notice at their previous employer.
DO YOU GET PAID EXTRA FOR “ACTING”?
To be eligible for acting pay, the employee must firstly act in a position that has a higher pay level assignment than the employee’s regular position. Secondly, the employer’s HR policies must provide for an “acting allowance” of sorts.
However, it does happen that some employers view the period of acting as a benefit in itself as it enhances the employee’s experience and provides an opportunity to illustrate additional abilities and skills to the employer.
In the case of Public Servants Association and Others v Department of Correctional Services (1998) 19 ILJ 1655 (CCMA) at 1671 the court held that “it would be unfair for an employee to occupy a higher post, do extra work and bear the additional responsibilities, but not be compensated in accordance with the post occupied”.
GENERAL GUIDELINES FOR ACTING APPOINTMENTS
 Generally, acting appointments should not last more than six (06) months.
 Acting appointments should be made for higher positions.
 Acting appointments must be approved by the Head of HR or the CEO.
 The acting allowance is non-pensionable and taxable.
 The appointment of an employee in an acting capacity does not create a right or a legitimate expectation to be appointed when the vacant post is advertised.
 An acting appointment is regarded as a temporary appointment in a vacant and funded post.
CONDITIONS FOR TERMINATIONS IN AN ACTING CAPACITY
Employers should ensure that the following risk management clauses are built into the acting agreement:
 The employer reserves the right to terminate in writing with immediate effect the acting appointment of an employee.
 In cases of absences from duty, the payment of an acting allowance shall be terminated with immediate effect from the date of commencement of absence, provided that the period of absence is going to be longer than one (1) calendar month.
Acting appointments tend to have unnoticeable loopholes which can have negative bearings on the employer, streamlining your Acting Policy requires the advice and knowledge of Labour Law experts. Employers are encouraged to consult with a reputable Labour Law firm to ensure that these risks are adequately addressed.

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