| (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— |
| (i) | be concluded within 60 days after commencement of service, failing which the appointment lapses: Provided that, upon good cause shown by such person to the satisfaction of the municipal council, the appointment shall not lapse; and |
| (ii) | be concluded annually, thereafter, within one month after the beginning of each financial year of the municipality; |
[Section 57(2)(a) substituted by section 4(a) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022]
| (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 consistency with— |
| (ii) | any regulations as may be prescribed that are applicable to municipal managers or managers directly accountable to municipal managers; and |
| (b) | be signed by both parties before the commencement of service. |
[Section 57(3) substituted by section 4(b) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022]
| (3A) | 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). |
[Section 57(3A) substituted by section 4(c) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022]
| (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) | [Section 57(4) deleted by section 4(d) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022] |
| (c) | the consequences of substandard performance. |
| (4A) | The provisions of the Municipal Finance Management Act conferring responsibilities on the accounting officer of a municipality must be regarded as forming part of the performance agreement of a municipal manager. |
[Section 57(4A) inserted by section 8 of Act No. 44 of 2003]
| (4B) | Bonuses based on performance may be awarded to a municipal manager or a manager directly accountable to the municipal manager after the end of the financial year and only after an evaluation of performance and approval of such evaluation by the municipal council concerned. |
[Section 57(4B) inserted by section 8 of Act No. 44 of 2003]
| (4C) | Any regulations that relate to standards and procedures for evaluating performance of municipal managers, and intervals for evaluation, must be regarded as forming part of a performance agreement referred to in subsection (1)(b). |
[Section 57(4C) substituted by section 4(e) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022]
| (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 up to a maximum of five years, not exceeding a period ending one year 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; and |
| (c) | [Section 57(6)(c) deleted by section 4(f) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022] |
| (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) | The contract of employment of a manager directly accountable to the municipal manager must be on a permanent basis. |
[Section 57(7) substituted by section 4(g) of Local Government-Municipal Systems Amendment Act, 2022 (Act No. 3 of 2022) by Notice No. 1233, GG46740, dated 17 August 2022]
