20 tips for employers

20 tips for employers

20 tips for employers

Tips for complying with labour law – non-compliance holds a serious business risk for employers, often underestimated and left unaddressed… Labour law sets strict requirements that employers must comply with, irrespective of the number of employees. Employers should make the mind shift to not only comply with labour law, but to use it to protect their businesses and their rights as employers.
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20 tips employers should pay attention to:

  1. Ensure you have an employment contract in place with every employee – the employment contract is the most important document in the workplace and forms the basis of the relationship between the employer and employee. This is one of the key tips to protect your rights as the employer. Ensure however, that you don’t settle for a generic employment contract, but rather opt for a purpose-built one according to your business.

  2. Use fixed term contracts carefully and in line with legislation – employers must clearly understand that to disguise what is actually permanent employment in the form of a fixed term contract is illegal.

  3. Make provisions for deductions in the employment contract – no deductions, except for statutory deductions, can be made without the employee’s consent.

  4. Address time periods in the employment contract with regards to short time, rest periods, compressed working weeks, etc.

  5. Implement a formal retirement age.

  6. Ensure every employee has a job description with achievable goals.  Employees need to know what is expected of them and what standard applies to performance.  Continuous evaluation and training is essential to assess work performance.  Give recognition to employees who achieve goals and perform well.

  7. Pay at least the national minimum wage.

  8. Keep a copy of the Sectoral Determination or Main Collective Agreement (if applicable to your business industry) in the workplace and make it available to employees.

  9. Display the posters of legislative summaries in the workplace – Basic Conditions of Employment Act, Employment Equity Act and Occupational Health and Safety Act.

  10. Use the disciplinary code to enforce the use of personal protective equipment (PPE).

  11. Verify if you are considered to be a “designated employer” in terms of the Employment Equity Act and must comply with certain requirements.

  12. Ensure your disciplinary code is relevant and up to date – every workplace must have a relevant disciplinary code.  The disciplinary code is important to ensure that there are clear rules in the workplace for employees to follow.  When these rules are broken, the employer can apply discipline in accordance with the applicable sanctions as listed in the code.

  13. Every business is unique – implement policies that are fair to address specific issues in your environment.

  14. Have regular consultations with employees – effective communication creates an environment receptive to growth.  This creates a platform for employees to discuss their thoughts, ideas and any specific needs.

  15. Issue warnings in line with the disciplinary code.

  16. Be consistent when applying discipline to avoid discrimination in the workplace.

  17. Always follow the correct procedure, especially when the employment relationship is terminated.

  18. Implement an attendance register that also records hours worked – the payslip must also reflect this information.

  19. Ensure that you, as the employer, are registered with the Unemployment Insurance Fund (UIF) and the Compensation Commissioner.

  20. Implement a grievance procedure – it is imperative that the employer establish internal procedures to give employees the opportunity to bring any unhappiness or unsatisfactory working conditions to the attention of the employer.
Tips for the best tip? Get access to a support base for practical advice and assistance to continuously comply with labour law – take note that through membership with the LWO, you get 24/7 access to our legal department for advice and assistance. Labour law applies to every employer; mistakes are often costly and can be limited or avoided by being proactive.

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Incapacity versus misconduct

Incapacity versus misconduct

Incapacity versus misconduct

Employers are often confronted with situations where it is difficult to differentiate between misconduct and incapacity. It is however crucial that the employer conduct a proper investigation before taking any disciplinary steps to ascertain if the employee’s conduct leans towards misconduct, or incapacity, as this will determine what process the employer should follow to address the issue.

Although both the disciplinary hearing and incapacity consultation are deemed fair procedures (if executed correctly), the employer should take care to apply the right procedure according to the employee’s conduct.  In many cases employers follow the wrong procedure and then dismiss the employee.  This poses a real risk to the employer if the employee refers the matter to the Commission for Conciliation, Mediation and Arbitration (CCMA) and the commissioner issues an award for remuneration and/or reinstatement.

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Incapacity

Incapacity refers to when an employee is incompetent and inherently unable to meet fixed performance standards whether due to ill health or poor work performance. The employer is required to provide an employee with training and guidance, as well as the opportunity to improve, where the employee lacks the required skill or knowledge to perform a certain task. Where the employee cannot perform according to the employer’s required standard due to ill health, the employer should consider the nature of the employee’s job, period of absence, seriousness of the employee’s illness or injury, possibility of accommodating the employee’s disability, and possibility of securing alternative employment within the business.

Misconduct

Misconduct refers to an employee’s failure to adhere to the employer’s rules and policies. In basic terms, misconduct is a behaviour issue of the employee. Such behaviour is normally deliberate or negligent, and employees can be held accountable for their actions. Misconduct can take various forms, including theft, fraud, dishonesty, insubordination, absence from work without permission, etc.
Every workplace must have a relevant disciplinary code. The disciplinary code is essential in ensuring that there are clear rules in the workplace, with appropriate sanctions, that employees can follow. When these rules are broken, the employer can apply progressive discipline. In cases of serious misconduct employers can directly proceed with a disciplinary hearing.
During the disciplinary hearing, the employer must provide the employee with an opportunity to be heard and to respond to allegations made. The employer should prove the following:
  • Was there a rule in the workplace and was the employee (reasonably) aware of this rule?
  • Did the employee break the rule?
  • Did the employer apply progressive discipline (warnings)?
  • Is the rule consistently applied?

Grounds for dismissal

The Labour Relations Act (LRA) distinguishes between ‘no fault dismissals’ (due to operational requirements or incapacity) and ‘dismissals due to misconduct’. The three grounds for justifiable dismissal are listed as: misconduct, incapacity, and operational requirements.
It is important that employers deal with issues in the workplace as quickly and effectively as possible, while taking care to act objectively and consistently.

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Employment relationship – what can go wrong?

Employment relationship – what can go wrong?

Employment relationship – what can go wrong?

At the start of the employment relationship, the parties don’t know each other, but already a fiduciary duty is in place that requires the employee to act in good faith and in the best interest of the employer. It is important that the employer implement a written employment contract with each employee on the day employment commences. A written employment contract creates clarity by confirming the terms and conditions of employment agreed upon and protects the employer in terms of the employment relationship going forward. Take care to include a job description listing the employee’s duties and employer’s expectations.
The employment relationship is a relationship of trust based on mutual benefits and respect. As a business owner, the employer should always anticipate what can go wrong with regards to the employment relationship, in order to be best positioned going forward and mitigating risk. Poor work performance, conflict, misconduct, and a breach of trust can place this relationship in jeopardy and employers should take proactive steps to regulate the employment relationship and protect their rights.
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The following issues can cause a breakdown of trust in the employment relationship:

Conflict

The workplace is a very diverse environment in terms of culture, religion, beliefs, values, political views, frames of reference, work ethic, opinions, etc. Everyone won’t always get along with each other and when conflict arises, the employer should step in and assist to resolve the conflict before it escalates or starts to affect more employees.

Misconduct

Misconduct can be described as an employee’s failure to adhere to the rules and policies of the employer. In basic terms, misconduct is a behaviour issue of the employee. Such behaviour is normally deliberate or negligent, and employees can be held accountable for their actions. Misconduct can take various forms, including theft, fraud, dishonesty, insubordination, absence from work without permission, etc.
Every workplace must have a relevant disciplinary code. The disciplinary code is essential in ensuring that there are clear rules in the workplace, with appropriate sanctions, that employees can follow. When these rules are violated, the employer can apply progressive discipline. In cases of serious misconduct employers can directly proceed with a disciplinary hearing. It is vital to always follow the correct procedure, as in failing to do so can lead to dire consequences with a huge financial impact.

Poor work performance

Poor work performance refers to the incapacity of an employee, in that an employee fails to reach and maintain the employer’s work performance standards in terms of quality and quantity. All employment contracts imply that the employee undertakes to perform according to the reasonable, lawful and attainable work performance standards set by the employer. Should the employee fail in this duty, despite assistance to reach the required standard, the employee is said to be incapable, and the employer has the right to dismiss him/her subject to following the correct procedure. Poor work performance involves a consultation process where the employee is informed of shortcomings and provided with training and guidance to achieve the desired outcome. The employee is monitored for a reasonable period of time and offered further training and guidance as needed. If improvement is not sufficient, a formal disciplinary process can follow which can lead to dismissal.
It is important to keep a good and healthy working relationship in place. Boundaries should be set from the beginning of the employment relationship in order to avoid any uncertainties going forward. Keep the communication lines open for all parties to address any issues which may arise. Employers should take care to follow the correct procedures when taking disciplinary action or holding consultations.

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Layoffs and the severance package

Layoffs and the severance package

Layoffs and the severance package

In the current economic climate, many employers are under tremendous financial pressure and must consider restructuring or layoffs (retrenchment) to remain sustainable. However, many aspects must be taken into account to limit the employer’s risk in relation to the process, as well as the payment of severance packages.

Layoffs: Consultation process

Legislation dictates that when the employer is considering layoffs, a consultation process with the employees is required:
  • Written notice must be given to all employees 48 hours before the consultation. Each employee must sign a copy of the memorandum as proof of receipt.
  • A first consultation takes place between the employer and all the employees during which the content of the notice is discussed with the employees. The purpose of the consultation is for the employer to allow the employees to make representations regarding the proposed retrenchments.
  • Alternatives that are presented must be explored and discussed. If the alternatives are not workable and there are no further alternatives, the process can be finalised. Employees who are affected by the retrenchment must be informed of this in writing and receive the necessary documentation. The notice period begins when the employee becomes aware of the retrenchment.
If at any given moment of the consultations any employee suggests that they may be laid off voluntarily, the employer may accept this. If an employee chooses voluntary retrenchment, they must understand that they will not be able to claim unemployment benefits from the Unemployment Insurance Fund.
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Final compensation payout

This payment consists of the wage/salary, annual leave payout, statutory notice period payout, and severance package (only payable with retrenchment and consists of one week for each completed year of service). The notice period must still be paid out to the employee, even if the employee is not required to work it.

Layoffs: Five common mistakes to avoid include:

  • Do not identify employees to be laid off beforehand.
  • The reason for layoffs must be fair.
  • All parties must be consulted.
  • Selection criteria used must be fair and objective.
  • The final compensation payout must be correctly calculated and paid out.

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COIDA audit and requirements

COIDA audit and requirements

COIDA audit and requirements

On 14 July 2022, the Director-General of the Department of Employment and Labour signed a notice informing businesses of compliance with the Compensation for Occupational Injuries and Diseases Act (“COIDA”), and the intention to visit business premises to conduct a COIDA audit.
The Department has recently appointed more than 500 inspectors to ensure that businesses comply with the requirements of COIDA.
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COIDA audit: requirements for businesses:

  • Section 80: all businesses in South Africa that employ one or more employees must register with the Compensation Fund within seven days of the first employee’s appointment. This applies to employees on a permanent or fixed-term employment contract (including seasonal employees). The following information must also be provided: date on which the business was established, the number of employees employed, and the salaries paid to the employees.

  • Section 81: personnel records must be kept, as well as salary information. Pay slips must be issued to employees. In the event of an injury on duty, the payslip must be submitted to the Compensation Fund as compensation is based on salary. The slip also validates the employment agreement between the employer and employee.

  • Section 82: businesses must declare their annual payroll to the Compensation Fund by March, or by the date as announced by the Compensation Commissioner.

  • Section 83: businesses are classified into different sub-classes and each sub-class has its own rate. This rate, together with the salaries declared, enables the Compensation Fund to determine the amount payable by the business.
About 950,000 businesses are registered with the Compensation Fund which are classified into 13 classes. These businesses paid R9.5 billion to the Fund in 2020/2021. With these monies, the Fund pays its staff members, compensation for work injuries, and doctors’ bills for the treatment of injuries on duty.

COIDA audit:

The Compensation Fund will begin to visit business premises to conduct audits in order to determine whether businesses comply with the requirements set by COIDA. The following documentation may be required with the audit:
  • Completed salary return form
  • Account issued by the Compensation Fund
  • Proof of payment
  • Letter of Good Standing

Fines payable for non-compliance

In terms of the Act, fines are payable when the employer declares the salaries late (after the deadline), as well as when the account is paid late. If businesses are not in a position to pay the full amount, an installment agreement can be agreed upon with the Fund.

The process of declaring salaries, making payments and obtaining the Letter of Good Standing must be repeated annually and it is important for businesses to keep an eye on the media or the Department’s website for announcements about this. That way, businesses can avoid fines by declaring salaries on time.
When a business is no longer operational, a manual application for deregistration with the Compensation fund must be made at the nearest Department of Employment and Labour as the process cannot be done online. The application can also be sent directly to the Compensation Fund in Pretoria.
As a registered employers’ organisation with the Department of Employment and Labour, the LWO specialises in labour law and can therefore only assist employers in this particular field. We do however always explore opportunities to take hands with service providers in other specialist fields to put solutions on the table for our members.

Contact Stephan Pietersen from Work Accident Support for COIDA assistance:  064 360 2638 | support@workaccident.co.za

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OHSA (Occupational Health and Safety Act) – basic thoughts

OHSA (Occupational Health and Safety Act) – basic thoughts

OHSA (Occupational Health and Safety Act) – basic thoughts

Basic thoughts regarding compliance with the Occupational Health and Safety Act (OHSA) include:

  • To comply with legislation is not negotiable and non-compliance can be costly in the general running of a business.
  • In accordance with legislation as well as ISO 45001, employers can be sued in their personal and business capacity and be prosecuted both civilly and criminally. A conviction could lead to huge fines and even the closure of a business until it is fully compliant.
  • Compliance contributes to productivity through employee satisfaction and buy-in.

It is important that employers get expert guidance to comply with the OHSA, especially when your business industry is subject to additional regulations.

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What are the hazards?

In terms of Section 8 of the OHSA, “every employer needs to establish what hazards to the health or safety of persons are attached to any work which is performed.”

The practical approach:

  • Identify the activities performed in each area of your business. Each activity would have safety related inputs, e.g. electricity, equipment, etc.
  • Assessing the risk could be done by giving a rating on a scale of 1 (low risk) to 5 (worst), scoring the following: severity, possibility of happening and who is exposed to the risk.
  • The management and control of the risks would require a process of elimination, substitution, engineering solutions, administrative controls, training with provision of safety equipment being the last resort.

Definitions

  • “Hazard”: the object which could cause potential harm
  • “Risk”: what could happen should things go wrong, e.g. injury, health risks, etc.
“We focus on sharing our expertise with clients and helping them through the practicalities of the process. We know where to start, what assessments are necessary, and what steps should be taken to become legally compliant. Most importantly, we help you to stay compliant,” says the CEO of Beehive OH&S, Leo van der Walt.

The LWO has an agreement in collaboration with Beehive OH&S to assist LWO members with regards to the OHSA.  Contact Leo van der Walt for more information at 072 594 5989, info@beehiveohs.co.za or   www.beehiveohs.co.za.

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