Recently on Facebook, in a group specifically created for recruiters to share tips and advice, the question regarding notice periods came up, and it seems that there is still massive confusion around requirements for notice periods. The issue that arises is when a person is given a contract of employment with unclear terms for notice period, which leads to confusion when the employee is looking to resign and how long they would need to serve. Notice periods often cause confusion, especially when the terms ''30 days'' and ''calendar month'' are used interchangeably in employment contracts. Understanding the difference is crucial to ensure both employees and employers adhere to legal and contractual obligations.
A notice period is the amount of notice an employee has to give their employer before resigning. It is also the amount of notice an employer needs to give an employee before the termination of their contract.
A 30-day notice period means that the notice period can begin on any day of the month and will terminate exactly 30 days later. For instance, if an employee gives notice on the 10th of the month, their last working day would be the 9th of the following month. This type of notice period is straightforward, as it counts exactly 30 days from the date notice is given, regardless of the month or the number of days in it.
A calendar month notice period, on the other hand, aligns with the calendar month structure. The definition of a calendar month is that of a common calendar and does not necessarily have to run from the 1st to the 31st. This can be interpreted in two main ways:
Some labour lawyers believe that if your employment contract specifies ''one calendar month'', it refers to a full month as shown on a calendar (e.g., from the 1st to the 31st). If the contract does not explicitly state this or uses the term ''30 days'', then the notice period is calculated from the exact day that you give notice. If your contract does not specify a notice period at all, the default requirements of the Basic Conditions of Employment Act will apply.
In South Africa, labour laws and court rulings provide additional clarity on how notice periods should be interpreted:
One week if employed for six months or less.
Two weeks if employed for more than six months but less than a year.
Four weeks if employed for one year or more.
The court emphasized the importance of interpreting the employment contract according to the parties' intentions, especially when there is confusion about the notice period. The court found that throughout the contract that ''month'' was used but was qualified as a calendar month specifically when referring to the notice of termination. The court said that a calendar month would then mean that of which the employer intended. It ruled that ''calendar month'' means from the first to the last day of the month if stated explicitly in the contract. The court held that the employee was obliged to give notice of termination with effect from the first day of the month to the last and in failing to do so he would be in breach of his contract. If the term ''month'' is used without clarification, the default legal interpretation might align with the common calendar month.
Clearly specify whether the notice period is ''30 days'' or ''one calendar month'' to avoid ambiguity. Make your intention as clear as possible.
Define the exact start date and end dates of the notice period in the contract.
Review the employment contract carefully to understand the notice period requirements.
If the contract is unclear, seek clarification from the employer to ensure mutual understanding.
Be aware of the legal minimum notice periods under the BCEA to protect your rights. An employee can be forced by a court to work out a notice period.
Understanding the distinction between a 30-day notice period and a calendar month notice period is essential for both employers and employees. Clear communication and well-drafted contracts can prevent misunderstandings and legal disputes. When in doubt, seeking legal advice or clarification from the employer can ensure compliance and a smoother transition during the notice period. When legal disputes arise, the courts will ascertain what the intentions of the parties are by taking into consideration the nature of the contract and what the intended meaning is.