Sale (transfer) of business and labour law
Sale (transfer) of business and labour law
What about the new employer?
IS YOUR BUSINESS LABOUR-COMPLIANT?
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IS YOUR BUSINESS LABOUR-COMPLIANT?
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Labour legislation applies to all employers and employees. The Basic Conditions of Employment Act (BCEA) defines the minimum terms and conditions of employment on which the parties may contract. However, if a business falls under an industry that is part of a specific Bargaining Council’s scope of application, the Bargaining Council’s collective agreement will regulate labour relations in that industry and employers are legally obliged to comply with this. Note that certain Bargaining Councils only apply to specific regions. The obligation rests with the employer to determine under which industry the business falls and then to comply with applicable legislation.
Employers that fall within a Bargaining Council’s scope of application must ensure that their employment contracts are drafted in line with this legislation. Note that the minimum terms and conditions of employment as contained in the Bargaining Council’s collective agreement rank higher than those contained in the BCEA. If any labour disputes arise between the employee and employer, ʼn Bargaining Council will have jurisdiction to deal with these disputes, as opposed to referring the dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA).
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All employers must comply with the Occupational Health and Safety Act. This law requires that employers, as far as is reasonably practicable, provide and maintain a work environment that is safe and without risk to the health of employees, customers, members, visitors, contractors, etc. who may be directly affected by their activities, or who enters the workplace.
In addition to this general obligation, additional regulations have been published in terms of COVID-19 that must be complied with. Each workplace is unique with regards to, among other things, the space and setup, activities, working methods, types of interaction, etc. Although COVID-19 regulations are legally enforced, it is a good idea to implement a COVID-19 policy and procedure in the workplace to clarify the required behaviour as well as the consequences in cases of non-compliance. In order to be able to apply discipline in the workplace, the employer must implement clear rules and also be able to prove that employees are aware of the rules as well as the consequences if these rules were broken.
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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.
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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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.
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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:
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.
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.
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