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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Breastfeed and the workplace

Breastfeed and the workplace

Breastfeed and the workplace

South Africa’s Public Health Policy promotes and encourages mothers to breastfeed their babies for at least the first six months of the child’s life. The Basic Conditions of Employment Act and its Code of Good Practice, provides that an employer should allow a breastfeeding mother at least two breaks per day of at least thirty minutes each to express milk for her baby. These breaks should be given in addition to her normal tea and/or lunch breaks. It is the duty of the employee to engage with her employer if she intends to breastfeed beyond six months and to make arrangements to support breastfeeding.
A pregnant employee should give notice to her employer, well in advance of her intention to breastfeed, in order to provide the employer the opportunity to arrange a clean and private area where the employee can express milk. It is the employee’s duty to engage with her employer or manager as soon as she returns from maternity leave to allow her employer ample opportunity to accommodate breastfeeding in the workplace.
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However, the Code of Good Practice fails to address a few important points such as whether:

  • breaks for expressing will be paid or unpaid;
  • the time period how long an employer should allow the employee to take these breaks to express breastmilk;  and
  • whether the employer should make provision for the storing and refrigeration of expressed breastmilk.

It is important that the employer and employee are on the same page.  Communication plays a vital role and employers must take care to consult with employees regarding the above and agree on the way forward.  Culture, gender, values, beliefs, etc. of all parties should also be taken into consideration in the communication process to ensure effective communication.

The Code of Good Practice serves as a guideline for employers to follow.  However, by creating a supportive environment for breastfeeding mothers in the workplace, the employer promotes the health of employees and their babies. 

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Conciliation, arbitration & potholes

Conciliation, arbitration & potholes

Conciliation, arbitration & potholes

When the employment relationship is terminated and the employee believes that he/she has been unfairly dismissed, the employee can approach the Commission for Conciliation, Mediation and Arbitration (CCMA). The case will first be placed for conciliation and if the case cannot be settled, it will be referred for arbitration.

What is conciliation?

This is an informal process where a commissioner is appointed to meet with the parties to a dispute within 30 days after the referral and explore ways to resolve the dispute by mutual agreement. Separate meetings between the commissioner and each party may also be held. If the case is settled, a settlement agreement is signed and the dispute is resolved. If either party breaks the agreement, the aggrieved party may apply to the Labour Court to make the agreement a court order.

Watch out for this pothole:

One of the biggest mistakes employers can make is not attending a conciliation. If the employer does not show up for conciliation, the commissioner will issue a certificate indicating that the dispute is unresolved. The case will then be referred for arbitration. It is important to remember that when a case is placed for Con/Arb and no objection was made against Con/Arb, the commissioner can immediately proceed with arbitration in the absence of the employer and the employer can face an arbitration order.

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What is arbitration?

This is a hearing process where the parties have the opportunity to state their case. During the process, oral evidence is presented as well as any other forms of evidence in support of a party’s case. Thereafter the commissioner will issue an arbitration awards within 14 days. An arbitration award is binding and the equivalent of a court ruling. An order can be that the case is dismissed or that the employer must pay compensation.

Watch out for this pothole:

One of the biggest mistakes is not showing up for the arbitration. If the employer does not attend the arbitration, the process will continue in his absence. The end result is that the CCMA will rule in favour of the employee as there were no facts presented on behalf of the employer. A further mistake is not to prepare thoroughly – each case is only as good as its facts and evidence. Consult properly with your LWO representative, prepare witnesses for questioning and make sure all documentary evidence is fully contained in the bundle.

Possible orders against the employer:

  • CCMA: 3-12 months of the employee’s salary and/or re-instatement
  • Labour Court: 3-24 months of the employee’s salary and/or re-instatement

(The salary is determined in accordance with the salary as on the date of dismissal.)

CCMA processes can be intimidating and it is a good idea to get expert advice. An employer can be represented by any employee/director of the business, or by an office bearer/official of a registered employers’ organisation (such as the LWO).
Employees may be represented by a fellow employee or a trade union. Lawyers do not have right of appearance in the CCMA. The only times when a legal practitioner, such as a lawyer, will be allowed during the proceedings, is only with arbitration when:
  • The commissioner and all the other parties agree to it.
  • The commissioner concludes that it is unreasonable to expect a party to deal with the dispute without legal representation.
  • If a party wishes to make use of a lawyer, the applicant must bring an application for legal representation in terms of rule 25 of the CCMA rules.
The LWO is registered as an employers’ organisation with the Department of Employment and Labour and automatically has the right to represent LWO members in forums such as the CCMA, Bargaining Councils and the Labour Court.

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Duties of the employer and employee

Duties of the employer and employee

Duties of the employer and employee

The employer-employee relationship is bilateral where both parties benefit but also have duties/obligations. The essence of the relationship is that the employee completes certain tasks or provides services to the employer, and then receives remuneration in return.

Duties: In terms of labour law, the employer has an obligation to:

  • Provide and maintain a safe working environment:
    Each employer will, as far as is reasonably possible, provide and maintain a work environment that is safe and without risk to the health of employees. All employees must be aware of and understand the Occupational Health and Safety Act. The employer’s duty to ensure a safe working environment may also include the obligation to protect the employee from any form of harassment. The Compensation for Occupational Injuries and Diseases Act obliges employers to register with the Compensation Commissioner and pay fees according to an annual assessment.

  • Treat the employee fairly as well as with dignity and respect:
    This duty is established in the Constitution with the right to fair labour practices. Legislation such as the Labour Relations Act and the Employment Equity Act protect employees from unfair discrimination.  Furthermore it an obligation to treat each employee with dignity and respect in order to maintain a good relationship.

  • Remunerate the employee:
    This obligation is the primary obligation of the employer, where an employee has rendered services.
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Duties: In terms of labour law, the employee has an obligation to:

  • Ensure a safe working environment:
    Employees have the responsibility to take care of their own health and safety, comply with policies and procedures, use prescribed personal protective equipment where necessary, report potential hazards and report any incident involving potential hazards as soon as possible

  • Provide services to the employer:
    The main purpose of the employee is to make his/her services available to the employer. It is also the employee’s responsibility to report for duty promptly. By accepting an employment contract, the employee guarantees to do the job with the necessary skill and thoroughness. Should a person therefore be dishonest about his/her skills or qualifications, this can be seen as gross misconduct and can lead to dismissal after a disciplinary hearing.
  • Execute reasonable and lawful instructions as well as being respectful:
    The employee is under the control of the employer. This would amount to a serious offence and be considered gross insubordination if an instruction is refused. An instruction must be reasonable and within the scope of the employee’s duties.
  • Look after the employer’s best interests:
    The employment relationship is based on trust and the employee has a fiduciary obligation to always act in good faith, to be loyal and to have the employer’s best interests at heart. It also includes the employee’s duty to report any dishonest conduct by fellow employees. When an employee is not guilty of an offence but was aware of the misconduct and did not report it to the employer, the employee has violated the relationship of trust and the employer can take disciplinary action against such an employee.

The employment contract regulates the conduct of both parties and it is important that both the employer and the employee fulfil their obligations.

Benefits of a no-recording policy:

  • It dissuades employees from recording conversations
  • It encourages trust and candid conversation
  • If knowledge of the recording occurs only after litigation has commenced, the employer may be able to use the after-acquired evidence to stem its exposure from the point when the breach of company policy was uncovered

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Secret recordings of ‘sensitive’ discussions in the workplace

Secret recordings of ‘sensitive’ discussions in the workplace

Secret recordings of ‘sensitive’ discussions in the workplace

Secret recordings of ‘sensitive’ discussions in the workplace – an interesting bargaining council case!

Employers face many challenges in the workplace. One that puts the employer in a vulnerable position, is when an employee wants to submit secret recordings of meetings or discussions into evidence in an unfair dismissal dispute at the Commission for Conciliation, Mediation and Arbitration (CCMA).

It is very important to distinguish between whether these secret recordings are lawful and allowed, and if they are permissible.

Section 4 of the Regulation of Interception of Communications and Provision of Communication-related Information Act, 70 of 2002, as amended (RICA), allows the recording or ‘interception’ of a conversation where the person who is recording the conversation, is part of that conversation. However, the law prohibits the recording of conversations where the recorder is eavesdropping.
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Although it may be lawful to secretly record a conversation, the true test is whether the act of recording a private conversation in secret, without informing the employer that it is being done, is a form of misconduct, even if this is legal under RICA.

This creates tension between the right of any person to record a conversation to which he is part of and the well-accepted principle of mutual trust between an employee and employer.

In the Bargaining Council proceedings of Waddell and Sandown Motor Holdings (Pty) Ltd (2021) 42 ILJ 2749 (MIBCO), the arbitrator had to decide whether a dismissal was fair where an employee secretly recorded negotiations between her and her employer. During these negotiations sensitive commercial information was exchanged during these conversations, which would not have been imparted by the employer’s managers had they known that their conversations were being recorded. When the employee’s recordings came to light, the employee was charged with misconduct, subsequently found guilty of misconduct and dismissed. The employee then referred a dismissal dispute to the Motor Industry Bargaining Council (MIBCO).

In the arbitration proceedings before a MIBCO arbitrator, the employee contended that RICA was applicable and that the recording was lawful. The arbitrator agreed that the recording was lawful, but found that, given the content and nature of the negotiations between the parties, the employee’s conduct had been manipulative and was in breach of her duty of good faith. The arbitrator therefore found that the employee’s conduct constituted serious misconduct, justifying dismissal.

It is therefore always important for an employee to consider what the consequences of their actions could be. By making secret recordings in the workplace might just lead to a dismissal

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Benefits of a company policy which prohibits unauthorised or secret recording:

  • It dissuades employees from secretly recording conversations
  • It encourages trust and candid conversation
  • If knowledge of the recording occurs only after litigation has commenced, the employer may be able to use the after-acquired evidence doctrine to stem its exposure from the point when the breach of company policy was uncovered

Since the employment relationship is built on trust, secretly recording the employer without informing the employer thereof or asking for consent, even if this is legal in terms of RICA, will ultimately have a negative impact on the trust relationship. If there is a policy or disciplinary code that prohibits secret recordings in the workplace, then the making of such recordings will most likely impair the trust relationship. The circumstances under which the employee made these secret recordings will determine whether it can be considered misconduct, and what disciplinary steps can be taken.

Contact the LWO at 086 110 1828 with any labour law queries – we are available 24/7. Members can also send an email to info@lwo.co.za for assistance and support.

Disclaimer: Take note that the information and material published is not legal advice but published for general information purposes. We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained on this platform. For legal advice kindly consult one of our legal advisors about any specific legal problem or matter.

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