Documentation basics for employers

Running a business not only involves managing day-to-day operations, but also ensuring compliance with complex labour legislation. This includes the Basic Conditions of Employment Act 75 of 1997 (BCEA), Employment Equity Act 55 of 1998 (EEA), and Occupational Health and Safety Act 85 of 1993 (OHSA) amongst others. Adherence is essential for protecting your business from legal penalties and disputes with employees.

Here’s a closer look at four basic documentation compliance tools:  how they help your business, and the risk of not having them in place.

1. Attendance register

The BCEA requires employers to keep detailed records of all employees’ working hours. This can be done manually with an attendance register, or electronically by using a clocking system. Regardless of the method, these records must be accurate and up to date.

How it helps: Keeping an attendance register ensures you keep track of hours worked:  normal working hours, overtime and public holidays. The register provides a paper trail, which can be crucial in resolving disputes regarding pay disputes. Additionally, it simplifies the payroll processes for wage calculations.

Risk of non-compliance: Wage disputes, claims of unpaid overtime or other compensation issues. If records are incomplete or incorrect, problems with the business’s labour inspections or legal battles with employees could follow.

2. Incident books

The incident book is an essential documentation tool for recording any significant occurrences in the workplace, such as accidents, injuries, or disciplinary actions. This book is a key part of managing workplace recordkeeping and employee conduct.

How it helps: Maintaining an incident book assists in complying with the BCEA and OHSA, which requires employers to keep records of workplace occurrences, injuries or accidents. It also provides valuable documentation for internal use, allowing you to track and address potential risks in the workplace. Should any disputes arise related to workplace misconduct or safety, having a written records of incidents will be critical in protecting your business.

Risk of non-compliance: Not keeping a thorough record of workplace incidents can leave you unable to defend disputes at the Commission for Conciliation, Mediation and Arbitration (CCMA), bargaining councils and also with government departments such as the Department of Employment and Labour, especially when dealing with matters of misconduct, poor work performances and accidents or injuries. Employers who fail to document incidents may struggle to defend themselves if legal action is taken, leading to costly fines and awards against them.

3. Payslips

The BCEA (as well as sectoral determinations and collective agreements) require employers to provide employees with payslips every time they are paid. These payslips must include detailed information, such as:

• the employer’s name and address,
• the employee’s position,
• the employee’s wage rate, as well as the ordinary-, overtime-, Sunday- and public holiday hours worked,
• any deductions and contributions made from the salary, and
• the employee’s contribution to the Unemployment Insurance Fund (UIF), to name but a few.

How it helps: Payslips provide employees with documentation and clear breakdown of their earnings and deductions. This transparency helps prevent misunderstandings or disputes regarding pay.

Risk of non-compliance: Failure to timeously provide accurate and detailed payslips can lead to disputes regarding pay or deductions. Without proper documentation, employees may challenge the accuracy of their wages, and the employer may face legal action.

4. Required legislative posters

Labour legislation such as the BCEA, EEA, and OHSA require employers to display specific posters about the legislation in the workplace in areas where they are visible to all employees. Along with these it is also good practice to displaying the business’s disciplinary code on a poster.

How it helps: Displaying these posters ensures that employees are aware of their rights and obligations under the law. This can also reduce the likelihood of disputes, as employees are more likely to follow disciplinary procedures when they are clearly communicated.

Risk of non-compliance: Not displaying the required posters can result in penalties from labour authorities. Non-compliance may also attract negative attention from labour inspectors, who could impose fines or other sanctions.

Conclusion

Compliance with labour legislation is not optional. Using tools such as attendance registers, incident books, payslips, and required posters ensure that you stay on the right side of the law and avoid costly disputes and penalties. Failing to implement these tools puts your business at significant risk, both legally and financially.

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