CCMA processes and what employers should know

CCMA processes and what employers should know

CCMA processes and what employers should know

The Commission for Conciliation, Mediation and Arbitration (CCMA), was established as an independent, apolitical dispute resolution body in terms of the Labour Relations Act (LRA). CCMA processes aim to promote fair labour practices and resolve labour disputes in the workplace. An employee can refer a dispute to the CCMA on the basis of dismissal, wages and working conditions, unfair labour practice, workplace changes and discrimination. Most cases referred to the CCMA relate to unfair dismissal.

When can the employee approach the CCMA?

  • In the case of alleged unfair dismissal, the dispute must be referred tot he CCMA within 30 days after the date of dismissal.

  • If a dispute relates to unfair labour practice, it must be referred to the CCMA within 90 days after the unfair incident, or within 90 days after the employee becomes aware of the unfair labour practice.

  • If the dispute relates to discrimination, it must be referred to the CCMA within six days for conciliation and if it cannot be resolved, be referred to the Labour Court.
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Who is the LWO?

  • 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.
  • 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.
  • Conciliation/Arbitration (“Con/Arb”): This is an ongoing process where conciliation and arbitration follow directly after each other on the same day. If conciliation (settlement) is not reached, arbitration will take place on the same day. Both the employer and employee can object to the ongoing process on the same day. However, the ongoing process is mandatory in matters concerning:
  • dismissal for any reason relating to a probation period;
  • any unfair labour practice relating to a probation period;
  • the failure of any payment in respect of the national minimum wage.

Who can represent an employer at the CCMA?

CCMA processes can be intimidating and it is a good idea to get expert advice. The only time when a legal practitioner, such as e.g. an attorney, will be allowed during the proceedings, is when:
  • The commissioner and all the other parties agree to it.

  • The commissioner concludes that it is unreasonable to expect a party to handle the dispute without legal representation.
An employer can be represented by any employee/director of the business, by an office bearer or an official of a registered employers’ organisation (such as the LWO).

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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“Inspections” by false officials

“Inspections” by false officials

“Inspections” by false officials

It has come to the Department of Employment and Labour‘s attention that people falsely pose as inspectors from this Department. In some instances employers are coerced and intimidated into buying “new” posters.

Make sure to do the following during an inspection by the Department of Employment and Labour:

  • Insist on positive identification of the person who introduces him-/herself as an inspector or an official.
  • First verify this information before giving the person access to your premises.

Inspections – please note the following:

  • No inspector may charge a fee for the inspection, investigation, advice or any assistance.
  • The Department of Employment and Labour does not delegate any third party to conduct an inspection on behalf of the Department – none of the Department’s powers may therefore be delegated.
  • No inspector may sell posters, products or information.
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Who is the LWO?

The LWO is an employers’ organisation that is registered with the Department of Employment and Labour. Our main goal is to assist employers to comply with labour law – typical services include:
  • Free labour law audit upon joining with 100% compliance in mind for your business (based on your specific business industry and setup)
  • Free telephonic labour law advice – members are encouraged to phone in as many times as needed
  • Free labour law documentation – including employment contracts, warnings, notices, policies, procedures, etc.
  • Assistance to implement rules in the workplace and enforce discipline – poor work performance, consultations, warnings, disciplinary hearings, etc.
  • Representation at the CCMA, Bargaining Council and Labour Court – our registration status with the Department of Employment and Labour gives us the right to automatically represent our members during conciliation/arbitration.
  • Assistance with restructuring, retrenchment, strikes, trade union negotiations, inspections, etc.
  • Anything labour law related between the employer and employee, the LWO protects the employer.
The LWO also established a Book shop, through which we provide labour law related articles to our members to assist employers to proactively manage labour as a business risk.

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Political parties and trade unions in the workplace

Political parties and trade unions in the workplace

Political parties and trade unions in the workplace

When trade unions lay claim to organisational rights in the workplace, employers are often uncertain about their own rights and those of the trade union, as well as how these rights are regulated. Currently, there is a tendency for certain political parties to try and appropriate trade union rights for themselves and intimidate employers into consulting and reaching agreements on terms and conditions of employment.

The 5 organisational rights

The Labour Relations Act (LRA) grants the following organisational rights to trade unions, subject to certain requirements:

  • Access to the workplace
  • Deduction of union registration fees
  • Trade union representation in the workplace
  • Leave for trade union activities
  • Disclosure of information
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What about a political party?

A political party is a political organisation that seeks to influence government policies, usually by setting up its own candidates and vying for votes and government positions.

No authorisation or permission is given to political parties for similar rights as those of trade unions. Employers must guard against entering into discussions with political parties regarding rights in the workplace.

If a trade union wants to claim organisational rights in the workplace, the trade union must first be registered with the Department of Employment and Labour. The trade union’s constitution must also be aligned with the employer’s business sector. Then, the trade union must also have sufficient (±20%) or majority (50% + 1) representation in the workplace in order to be able to claim certain organisational rights. Previously the Commission for Conciliation, Mediation and Arbitration (CCMA) considered ±30% representation in the workplace as sufficient representation, but currently the trend has moved to only ±20% representation.

Process to claim rights

In order to claim organisational rights, legislation requires trade unions to follow a procedure, which entails that the trade union must notify the employer in writing of the rights that the trade union want to exercise in the workplace. The employer must then meet within 30 days with the trade union to consult. A recognition agreement is then concluded if the trade union meets the necessary requirements, which stipulates the terms and conditions agreed upon.

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Retrenchment: what is “bumping”?

Retrenchment: what is “bumping”?

Retrenchment: what is “bumping”?

In the current economic climate, many employers struggle to stay competitive and profitable and must consider different options to adjust to a changing environment. Retrenchment is a no fault dismissal, as the employee did nothing wrong and dismissal is due to operational requirements. As with all dismissals, the retrenchment process must be both substantively and procedurally fair. But how does an employer decide who stays and who goes?

Selection criteria

Employers are entitled to adopt a multi-rating selection criteria such as:

  • Years of service (“Last In, First Out”) and “bumping”
  • Qualifications and experience
  • Direct supervisor review (including an assessment of factors such as commitment to the business and team, goals, teamwork and dependability, attendance, flexibility, initiative and career potential)
  • Competency, efficiency, key skills retention
  • Continued service delivery
  • Performance appraisals and past performance (or discipline, for that matter)
  • Voluntary severance package
  • Retirement package
  • Redeployment package
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LIFO and “bumping”

Employers and consulting parties often tend to rely on the “Last In, First Out” (LIFO) principle, which is based on years of service. However, when employees are selected for retrenchment within a particular division/department as shorter serving employees in that specific division/department, these employees may in fact have longer periods of service with the employer than employees in other divisions/departments.

“Bumping” is when employees with longer service with the employer, are then transferred to positions held by employees with shorter service in other divisions/departments.

2 forms of “bumping”

  • Horizontal “bumping” – where an employee is transferred to a position of similar status, conditions of employment and remuneration; and
  • Vertical “bumping” – where an employee is transferred to a position with less favourable status, conditions of employment and remuneration.

An employer must first apply horizontal “bumping” before vertical “bumping”.

The Labour Appeal Court says…

The Labour Appeal Court has now made it clear that where employers choose to consider LIFO as a selection criterion, employers must consult on the application of “bumping” in selecting employees for retrenchment. Employers must be able to explain why it would not be fair and appropriate to apply “bumping”.

We strongly advise employers to implement clear rules in the workplace and follow correct procedures with regards to all labour matters. Employers must be proactive and act consistently especially with retrenchment and general discipline in the workplace.

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Effect of the new earnings threshold 2021

Effect of the new earnings threshold 2021

Effect of the new earnings threshold 2021

Together with the new national minimum wage that came into effect on 01 March 2021, employers also have to take note of the implementation of the increased annual earnings threshold. The previous threshold has been in effect since 01 July 2014 and increased now from R205 433.30 to R211 596.30. The earnings threshold affects provisions of the Basic Conditions of Employment Act, 1997 (BCEA), the Labour Relations Act, 1995 (LRA) and the Employment Equity Act, 1998 (EEA).

What is earnings?

“Earnings” means an employee’s regular annual remuneration before deductions (e.g. income tax, pension fund contributions, medical aid contributions and similar payments), but excludes contributions made by the employer in respect of the employee. Subsistence and transport allowances received, achievement awards and payments for overtime worked will also be excluded within the scope of remuneration.

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Threshold | BCEA

In terms of the BCEA, employees earning in excess of the earnings threshold are excluded from the provisions which regulate ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, Sunday pay, pay for night work and pay for work on public holidays. This means that regulation of the aforementioned should be by mutual agreement and will not be regulated by the BCEA as is the case with employees earning below the threshold.

Threshold | LRA

In terms of the LRA, employees earning in excess of the earnings threshold are not subject to the provision deeming the employees engaged by a temporary employment service/labour broker, to be employees of the employer/client for purposes of the LRA. In addition, employees earning in excess of the earnings threshold fall outside the scope of the provisions relating to fixed term employees who are deemed to be employed indefinitely after three months (in the absence of justifiable reasons for fixing the term of the contract).

Threshold | EEA

An employee earning in excess of the earnings threshold who has a dispute under Chapter II relating to unfair discrimination, is not permitted to refer the dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA) for arbitration. Such an employee is obliged to refer the dispute directly to the Labour Court for adjudication (unless the dispute relates to alleged unfair discrimination on the grounds of sexual harassment, or the parties all agree to arbitration).

It is vital for every employer to determine which employees earn in excess of the earnings threshold and which employees earn below the threshold, as this has a huge impact on the terms and conditions of employment the employer and employee can agree on. Employers must stay informed and up to date regarding labour law in order to take proactive action to protect their rights and their businesses with regards tot he employment relationship going forward.

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3 types of labour inspections

3 types of labour inspections

3 types of labour inspections

Our South African labour laws are extensive and rigid, leaving no room for negotiation. Many employers conduct their business with the sincere belief that they are adhering to the required labour regulations, although in reality this is often not the case. Failure to comply with these labour laws can result in significant financial repercussions, needlessly jeopardising your business.

The Department of Employment and Labour possesses the authority to enforce these labour regulations and carries out regular workplace inspections to ensure adherence thereto.  There are three categories of inspections, each focusing on ensuring compliance with a specific set of laws, namely:

  • The Basic Conditions of Employment Act, which encompasses Sectoral Determinations and Main Collective Agreements;
  • The Employment Equity Act; and
  • The Occupational Health and Safety Act.
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The three categories of labour inspections:

Employers should be diligent in distinguishing between these distinct types of inspections to ensure overall compliance. The three categories of labour inspections encompass the following aspects:
  • Inspection under the Basic Conditions of Employment Act:

    This inspection focuses on ensuring compliance with the minimum terms and conditions of employment that both the employer and employee can mutually agree upon, encompassing industry-specific legislation where applicable. The inspector will examine:

    • The Employment contracts (written particulars of employment);
    • Attendance records;
    • Remuneration details – pay slips/envelopes, minimum wage, overtime, paid leave, working hours, etc.;
    • Verification of UIF and COIDA registration along with proof of payments made; and
    • Comprehensive list of employee names and corresponding ID numbers.

In case of non-compliance, the inspector will issue a dated compliance order to the employer. Subsequently, this can lead to the imposition of monetary penalties or even imprisonment.

  • Inspection under the Employment Equity Act:

    This inspection’s focus is on the compliance of the Employment Equity Act, which strives to eradicate unjust discrimination in the workplace, while promoting equal opportunities and equitable treatment. Employers meeting specific criteria are known to be “designated employers,” with additional responsibilities. Employers must verify whether they classify as a “designated employer” to ensure conformity and compliance.

     Non-compliance for a “designated employer” may result in a fine of R1.5 million for the first offense or 10% of the employer’s annual turnover (whichever is greater), and/or up to 10 years of imprisonment.

  • Inspection under the Occupational Health and Safety Act:

    This inspection concentrates on compliance with health and safety regulations, aiming to establish a secure and healthy work environment. The inspector will scrutinize aspects like legislative posters, health and safety representatives and committees, relevant signage, personal protective equipment, and more.

If non-compliance is found, the inspector will provide the employer with a dated compliance order. Depending on the severity of the non-compliance, this could lead to temporary cessation of business activities or even penalties. Continuous non-compliance might result in penalties, imprisonment, and potential criminal prosecution.

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