In the social impact sector, passion is abundant. People join nonprofits, community initiatives, and development programmes not for wealth or status, but because they believe in something larger than themselves.
Yet passion, while powerful, is not enough. Goodwill cannot pay rent, sustain families, or shield staff from exploitation. To build organisations that truly serve communities, we must also build workplaces rooted in clarity, fairness, and security. At the heart of this is something often treated as administrative red tape: the employment contract.
Contracts are not just paperwork. They are instruments of dignity. They affirm to staff: you are recognised, your contributions matter, and we are committed to treating you fairly. When contracts are absent, the result is not just legal vulnerability for organisations — it is erosion of trust and dignity for employees.
The Legal Foundation: More Than Compliance
South African law is unambiguous about this duty. The Labour Relations Act (LRA) safeguards against unfair dismissal and retrenchment, requiring consultation, fair selection, and severance (Section 189). The Basic Conditions of Employment Act sets out minimum standards such as working hours, leave, and remuneration. Courts have repeatedly reinforced the principle that even without formal contracts, the existence of an employment relationship creates enforceable rights. In McInnes v Technikon Natal (2000), the court held that oral assurances and conduct could establish a binding employment relationship.
This legal framework reflects a deeper ethical truth: when organisations fail to provide written contracts, they fail to protect both staff and themselves. They leave workers uncertain of their rights and expose themselves to reputational and financial risk.
But the question goes beyond legality. What does it mean for an organisation to claim it upholds dignity and justice in communities if it cannot uphold the same principles for its staff?
When Clarity Is Missing: Real-World Consequences
Imagine a nonprofit employing community health workers during a vaccination drive in KwaZulu-Natal. Staff work long hours in unpredictable environments, often dealing with distressed families. Without formal contracts, confusion abounds: Who is responsible for transport costs? How much overtime counts as payable? What happens if a worker is injured? The absence of clarity creates fertile ground for frustration. Workers feel undervalued, supervisors struggle with inconsistent expectations, and morale dips. Ultimately, the campaign’s effectiveness is compromised.
This is not unique to South Africa. In Kenya, thousands of community health volunteers — who form the backbone of rural health services — went on strike in 2017, protesting years of unpaid stipends and lack of contracts. The disruption left entire regions without frontline health services. What began as a labour rights issue became a public health crisis.
Closer to home, South African NGOs have faced similar disputes. In some cases, staff retrenchments without proper consultation or severance sparked grievances that damaged the organisation’s reputation among donors and the public. These examples underline a critical principle: when staff are treated as expendable, communities eventually pay the price.
The Transformative Power of Contracts
The solution, however, is surprisingly straightforward. A simple, well-drafted contract can transform the workplace environment. Contracts should outline:
- Roles and responsibilities — What exactly is expected of the employee?
- Hours and remuneration — When and how will they be compensated?
- Leave and benefits — What entitlements exist, and how can they be accessed?
- Grievance procedures — Where can staff turn if issues arise?
Take the same vaccination campaign. With contracts in place, staff know they will be reimbursed for transport, receive protective equipment, and be supported in case of illness. Supervisors can manage performance fairly, based on agreed responsibilities. Donors, too, see the organisation as credible and professional. A document that might have been dismissed as administrative suddenly becomes a foundation for trust, accountability, and dignity.
An analogy may help here: contracts are to organisations what seatbelts are to cars. Many drivers believe they will never crash, but without seatbelts the risk of injury skyrockets. Contracts, like seatbelts, may seem unnecessary when everything runs smoothly — but when crises emerge, they prove indispensable.
Beyond Contracts: Building a Culture of Respect
While contracts are essential, they are only one part of the solution. Ethical employment requires a broader culture of clarity and respect. Practical measures include:
- Clear onboarding processes that familiarise staff with rights, policies, and expectations.
- Regular performance dialogues that create space for feedback, recognition, and growth.
- Transparent communication channels where staff can raise issues without fear of retaliation.
- Training for managers on labour rights and conflict resolution, reducing the risk of misunderstandings escalating into disputes.
Some organisations go further, embedding staff dignity into governance. For example, the Treatment Action Campaign in South Africa built strong internal democratic structures, ensuring that members and staff had a voice in shaping strategy. This not only protected employment relationships but also aligned the organisation’s internal culture with its external mission.
The Bigger Picture: Integrity in Impact Work
Employment clarity is not a bureaucratic chore. It is a litmus test of integrity. If a nonprofit preaches justice, fairness, or dignity but fails to treat its staff with the same values, its message rings hollow. Communities are perceptive; they notice when organisations fail their own people. Funders, too, increasingly demand evidence of sound employment practices as part of due diligence.
Social impact cannot thrive on goodwill alone. Contracts are part of the infrastructure of trust. They create stability for staff, reduce organisational risk, and build credibility with partners. Most importantly, they affirm the humanity of those who dedicate their energy to social change.
The heart of social impact work lies in dignity — not only the dignity we aim to restore in communities, but the dignity we must uphold within our organisations. Written contracts, far from being administrative burdens, are powerful tools of recognition and trust. They protect employees, strengthen organisations, and safeguard the integrity of the sector itself.
The real question is not whether organisations can afford to issue contracts. It is whether they can afford not to.
Learning: Social impact requires more than good intentions. Contracts protect dignity, enable trust, and ensure that organisations can serve our communities with integrity.
-Lele
Lele Muthali 