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Municipal Systems Act, 2000 (Act No. 32 of 2000)

Chapter 7 : Local Public Administration and Human Resources

Part 2 : Political structures, political office bearers and roles

57. Employment contracts for municipal managers and managers directly accountable to municipal managers

 

 

1) A person to be appointed as the municipal manager of a municipality, and a person to be appointed as a manager directly accountable to the municipal manager, may be appointed to that position only-
a) in terms of a written employment contract with the municipality complying with the provisions of this section; and
b) subject to a separate performance agreement concluded annually as provided for in subsection (2).

 

2) The performance agreement referred to in subsection (1)(b) must-
a)
i) be concluded within 60 days after a person has been appointed as the municipal manager or as a manager directly accountable to the municipal manager, failing which the appointment lapses: Provided that, upon good cause shown by such person to the satisfaction of the municipality, the appointment shall not lapse; and
ii) be concluded annually, thereafter, within one month after the beginning of each financial year of the municipality;
b) in the case of the municipal manager, be entered into with the municipality as represented by the mayor or executive mayor, as the case may be; and
c) in the case of a manager directly accountable to the municipal manager, be entered into with the municipal manager.

 

3) The employment contract referred to in subsection (1)(a) must-
a) include details of duties, remuneration, benefits and other terms and conditions of employment as agreed to by the parties, subject to by the parties, subject to consistency with-
i) this Act
ii) any regulations as may be prescribed that are applicable to municipal managers or managers directly accountable to municipal managers; and
iii) any applicable labour legislation; and
b) be signed by both parties before the commencement of service.

 

4A) Any regulations that relate to the duties, remuneration, benefits and other terms and conditions of employment of municipal managers or managers directly accountable to municipal managers, must be regarded as forming part of an employment contract referred to in subsection (1)(a).

 

4) The performance agreement referred to in subsection (1)(b) must include-
a) performance objectives and targets that must be met, and the time frames within which those performance objectives and targets must be met;
b) [deleted by Act No.7 of 2011];
c) the consequences of substandard performance.

 

4C) Any regulations that relate to standards and procedures for evaluating performance of municipal managers or managers directly accountable to municipal managers, must be regarded as forming part of a performance agreement referred to in subsection (1)(b).

 

5) The performance objectives and targets referred to in subsection (4)(a) must be practical, measurable and based on the key performance indicators set out from time to time in the municipality’s integrated development plan.

 

6) The employment contract for a municipal manager must-
a) be for a fixed term of employment not exceeding a period ending two years after the election of the next council of the municipality;
b) include a provision for cancellation of the contract. in the case of non-compliance with the employment contract or, where applicable, the performance agreement;
c) stipulate the terms of the renewal of the employment contract, but only by agreement between the parties; and
d) reflect the values and principles referred to in section 50, the Code of Conduct set out in Schedule 2, and the management standards and practices contained in section 51.

 

7) [Sub-section (7) deleted by Act No. 7 of 2011].