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-
    1. in terms of a written employment contract with the municipality complying with the provisions of this section; and
    2. 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-
    1. be concluded within a reasonable time after a person has been appointed as the municipal manager or as a manager directly accountable to the municipal manager, and thereafter, within one month after the beginning of the financial year of the municipality;
    2. 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
    3. 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 include, subject to applicable labour legislation, details of duties, remuneration, benefits and other terms and conditions of employment.
  4. The performance agreement referred to in subsection (1)(b) must include-
    1. performance objectives and targets that must be met, and the time frames within which those performance objectives and targets must be met;
    2. standards and procedures for evaluating performance and intervals for evaluation; and
    3. the consequences of substandard performance.
  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-
    1. be for a fixed term of employment not exceeding a period ending two years after the election of the next council of the municipality;
    2. include a provision for cancellation of the contract. in the case of non-compliance with the employment contract or, where applicable, the performance agreement;
    3. stipulate the terms of the renewal of the employment contract, but only by agreement between the parties; and
    4. 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. A municipality may extend the application of subsection (6) to any manager directly accountable to the municipal manager.
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