Employers Duties

EMPLOYERS DUTIES:

1. Provide an employee with a contract:
An employer must supply an employee, when the employee commences employment, with the following particulars of employment in writing:

•  full name and address of employer;
• name and occupation (with a brief description of the work) of the employee;
• place of work;
•  commencement date;
• ordinary hours and days of work;
• remuneration – wages, overtime, other cash payment, any payment in kind, etc.;
•  deductions;
• frequency of payment;
•  leave;
• statutory notice periods;
•  a list of documents that form part of the employment contract;
• description of any council or sectoral determination applicable; and
•  period of employment with a previous employer that counts towards the current employment period.

Tip: Take care that the contract is not less favourable than the applicable legislation which should be adhered to.

•  employer’s name and address;
• employee’s name and occupation;
• period of payment;
•  employee’s remuneration in money and wage rate;
•  hours worked – ordinary hours, overtime, Sunday time and hours worked on a public holiday;
• deductions;
• actual amount paid to the employee.

Tip: Records must be kept for at least 3 years from date of last entry.

Risk: Any person that is found guilty of non-compliance with this act will be liable to a fine of up to R50 000.00 and/or imprisonment

The Act requires designated employers to:

• Consult with employees.
• Conduct an analysis.
• Prepare an employment equity plan.
•  Report to the Director-General on progress made in implementing its employment equity plan.

Risk: Any designated employer that is found guilty of non-compliance with this act will be liable to a fine of up to R2,7 million or 10% of the employer’s annual turnover, whichever is the greatest

5. Register for UIF:
Registration for UIF must be done as soon as employment of the employee commences. 1% of the salary is deducted from the employee’s salary as well as an equal contribution by the employer monthly, which is the employer’s responsibility to make the deductions and pay the monies over.

Risk: The UIF will be able to levy a fine of 10% on all unpaid contributions, and the financial committee will also calculate interest that is due should an employer not comply with the legal requirements

6. Report any injuries on duty, no matter how small:
COIDA applies to all employers and casual and full-time employees who, as a result of a workplace accident or work-related disease are injured, disabled, or killed or become ill. An employer carrying on business in South Africa, must register with the Compensation Commissioner. An employer must notify the Compensation Commissioner of an accident (personal injury, illness or death of an employee) within 7 days after having received notice of an accident or becoming aware of an accident that took place.

Tip: An employer only has to pay 75% of employee’s earnings for the first 3 months of injury or illness (temporary total/partial disablement), which can be claimed back from the Compensation Commissioner;

7. Pay your Skills Development levy:
If the employer has staff registered for PAYE and the annual payroll exceeds R500 000.00 per annum, the employer must register with SARS and pay a skills development levy of 1% of the monthly payroll.

Risk: SARS will impose both interest and penalties for late or non-payment of skills development levies. A labour inspector may order the company to stop work if the company is found guilty of illegal practices and/or a discretionary fine can be imposed by a court and/or 1 year imprisonment