Do your contracts have penalty clauses? If not, why not? If yes, you have an astute lawyer!
when an employee/contractor warrants a specialisation for which payment for the service, or in terms of the contract, is remitted can you hold the individual liable when things go wrong?
When things go wrong what recourse would you satisfy your company?
Take a look at the Conventional Penalties Act 15 of 1962 when you are contracting.
In a nutshell, it states the following:
if a party acts in conflict with what is stipulated in the contract, then the defaulting party is liable to pay or deliver or perform;
Incorporating the above mentioned clause in your contract will ensure enforceability by a competent court as a penalty;
Do you know you can’t claim damages and penalties unless agreed thereto;
Further, both parties must agree that the penalty is not deemed reasonable;
And parties can stipulate that upon withdrawal from an agreement by a party, the withdrawing party will forfeit the right to restitution of anything performed in terms of the agreement but remain liable for their performance, in this case, the penalty stipulation will still apply.
Download (pdf file)