Sick leave abuse 2023

Sick leave abuse 2023

Sick leave abuse 2023

Earnings threshold 2023: 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. The earnings threshold has seen yet another increase as from 1 March 2023 and is currently set at R241 110.59 (a monthly amount of R20 092.55). The previous threshold of R224 080.48 has been in effect since 1 March 2022.
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When is it due?

Section 22(1) to 22(4) of the Basic Conditions of Employment Act 75 of 1997 (BCEA) stipulates that an employee is entitled to paid sick leave. During the first six months of employment, paid sick leave is calculated as one day paid sick leave for every 26 days worked. In a 36-month leave cycle, an employee is entitled to 30 days paid sick leave (if the employee works five days per week) or 36 days paid sick leave (if the employee works six days per week). This leave cycle commences, irrespective of a probation period, on the first day of employment and paid sick leave taken during the first six months of employment can then be deducted from the total leave cycle. Remember sick leave is only due to employees genuinely too ill to perform their duties.

Is it paid or unpaid leave?

Firstly, is paid sick leave due? If yes, the employer must determine whether a medical certificate is needed. A medical certificate has to be presented if an employee is absent from work for more than two consecutive working days, or on more than one occasion within an eight-week period.

If paid sick leave is not due, there are two options:

  1. the employer can process it as unpaid leave;  or
  2. process it as paid leave and deduct it from the employee’s annual leave.

An employer is not required to pay an employee in terms of Section 22 of the BCEA if the employee has no available sick leave days, does not provide a valid medical certificate when required to do so, or is absent without the employer’s permission.

Abusing sick leave

In general, if a valid medical certificate is provided, the absence should be dealt with as a form of incapacity as the employee is inherently unable to meet fixed performance standards due to ill health.  When the employer however suspects abuse of sick leave, it is important to follow a fair process to investigate a claim of misconduct to produce evidence.

Ask these questions to determine if the employee’s behaviour amounts to misconduct or incapacity:

  • Is the employee taking a certain number of sick leave days in a short period of time?
  • Is the employee’s sick leave exhausted?
  • Do the dates of the sick leave suggest a pattern, i.e. is the employee typically sick on Mondays and Fridays, before or after a public holiday, or after payday?
  • Has the employee submitted valid medical certificates?
  • Is there any evidence that suggests that there may be other reasons for the employee’s absences (e.g. domestic violence, depression)?

Consider these two procedures in serious cases of incapacity or misconduct:

  • Incapacity procedure:  The frequently absent employee is genuinely suffering from ill health and could potentially be dismissed for incapacity.  Have the employee undergo a medical investigation to determine if the employee is capable of performing their duties and meeting the employer’s fixed operational standard.
  • Disciplinary procedure:  The medical investigation shows that the employee has no severe health problems.  The employer is now alerted to investigate sick leave absences in future, to determine if the employee was really sick or should be charged with misconduct lead by a medical investigation to proceed with a disciplinary hearing.

It is important that employers deal with issues in the workplace as quickly and effectively as possible, while taking care to act objectively and consistently.  By being proactive, the employer can greatly contribute towards the business’s sustainability and profitability and ensure a working environment with reduced conflict, friction and misunderstanding, which in turn creates a structured environment receptive to growth.

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Annexures to the employment contract

Annexures to the employment contract

Annexures to the employment contract

An employment contract is the most important document in the workplace and defines the terms and conditions as agreed upon between the employer and employee. It regulates the employment relationship and by including proactive clauses and annexures in the employment contract, the employer is better positioned to address and limit disputes that may arise from this relationship.
In addition to the employment contract, the employer can add annexures to further protect the business going forward. Typical annexures that form part of the employment contract include a restraint of trade and a confidentiality agreement. These agreements are crucial for more specialised business activities to prevent competition and protect confidential information, unique methods and procedures, patents, etc.
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2 most common annexures:

Restraint of trade agreement

A restraint of trade is an agreement between the employer and employee that prevents an employee from using his/her work, aptitude or training in the same field as the employer for a specific time period and in a specific area, after employment with the current employer came to an end. The restraint of trade seeks to protect the interests of the employer with specific reference to confidential information, clients, and goodwill (the business’s good name).
Aspects to consider for a restraint of trade to be successfully enforced:

  • What: What are the specific tasks, aptitude, work or field in which a former employee cannot become involved.
  • Where: Refers to the geographical area.  Take note that there should be a connection with the specific area.
  • Time: Refers to the period after the employee has left employment, during which the restraint of trade will be valid. This must be a reasonable period of time.

Confidentiality agreement

Confidentiality agreements are legal contracts that protect the employer’s confidential information and trade secrets. These agreements require employees to maintain confidentiality and not disclose any sensitive information to third parties. Confidentiality agreements can be used to protect various types of information, such as financial data, business plans, client lists, product designs, etcetera. These agreements can also be used to ensure that employees do not use confidential information for personal gain or to benefit their new employer after leaving the business.
These types of agreements also serve as a deterrent for employees not to incriminate themselves in these actions knowing that they may be subject to legal action. These agreements are enforceable in court, provided they are reasonable and do not place unnecessary restrictions on the employee’s ability to work and earn an income.

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Time wasters in the workplace – ‘I don’t have time’

Time wasters in the workplace – ‘I don’t have time’

Time wasters in the workplace – ‘I don’t have time’

by Abrie Bronkhorst

Time is money. When an employee is employed, they undertake to be available for a number of hours to provide service. In exchange for this, the employer undertakes to compensate the employee for his availability and expertise. It then follows logically that the employer can expect the employee’s attention to be at work.

Several time wasters in the workplace are counterproductive. Employers should take note of the following:

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Absenteeism

Absenteeism and tardiness are two of the most significant time wasters in the workplace. Apart from the employee who does not provide services according to agreed hours, absence has far-reaching consequences regarding colleagues’ service delivery. For example, a colleague has to stand in for the absent employee and cannot focus on his own activities, or the progress of a project or task is slowed down because the absent employee’s input and contribution are awaited.

Apart from not being at work, absenteeism also means:

  • Arriving late (it is still absent as long as the employee is not at work)
  • Leaving early
  • Unauthorised breaks
  • Extended breaks (smoke, toilet, lunch, tea, etc.)

Extended smoke breaks:

Firstly, there is no obligation for an employer to provide for smoke breaks. The Basic Conditions of Employment Act only provides for meal breaks. If the employer allows smoke breaks, it should preferably be regulated by a smoking policy. If not, smoke breaks can get out of hand by happening irregularly and creating the opportunity for extended chatting and gossip. This can lead to smoke breaks during working hours being easily abused, resulting in valuable working time lost. Four smoke breaks of 15 minutes each represent an hour of working time.

Extended tea/coffee breaks:

Making coffee often involves chatting, and socialising in a workplace’s kitchen can easily last up to 20 minutes per coffee break. Three coffee or tea breaks of 20 minutes each represent an hour of working time.
  • Feigned illness
  • Other unexplained absences from the workstation or the premises.
It is the employee’s duty to commence and end duties at times required by the employer.

Lack of attention

A lack of attention often leads to unnecessary repetition, mistakes, and even negligent damage and/or loss of the employer’s property. In addition, precious time is lost because the employee did not give the necessary care and attention to the employer’s instructions, and tasks sometimes must be redone. This lost time cannot be made up.

Cell phone distractions

It is no secret that mobile phones disrupt the workplace by constantly interrupting employees’ concentration when a message, notification or call comes through. There is such a wide variety of smartphone applications available, which only increases the potential for disruption – Facebook, YouTube, TikTok, WhatsApp, and so on. Even if the employee uses their own data and airtime for personal messages, calls and internet access, working time still belongs to the employer. It must be used to promote the employer’s interests.
Depending on the employer’s business activities, using (personal) mobile phones can create a real problem. By implementing a mobile phone policy, the employer can create clear guidelines for using personal mobile devices so that the employer’s operational requirements are not negatively affected. Employees must also be able to use integrity and judgment to know when it is appropriate to be on their phones.
Time wasters in the workplace raise two critical questions in the labour environment. First, can employees who take frequent smoke breaks and extended coffee sessions be required to cover the lost hours? And can employees who neither smoke nor take extended coffee sessions receive this extra time in the form of time off?

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The golden rules of applying discipline

The golden rules of applying discipline

The golden rules of applying discipline

by Anneline Scriven

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) 66 of 1995 and is aimed at promoting fair practises and resolving labour disputes within the working environment.
An employee can refer a dispute to the CCMA on account of dismissal, wages and working conditions, unfair labour practises, workplace changes and discrimination. Most cases referred to the CCMA pertain to unfair dismissal. In general, arbitration awards in favour of the employee are due to incorrect procedures on the employer’s behalf.
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Always follow the golden rules of applying discipline and ensure that the consequences of a CCMA case do not mean the end of your business:

  1. Have clear rules and guidelines in the workplace and ensure that every employee is aware of these rules. Employers must have an up-to-date disciplinary code that lists offences with the appropriate sanctions to use when rules and procedures are not followed.
  • Apply progressive discipline according to the offence’s seriousness and keep a detailed record thereof.
  • Remember, the CCMA mainly looks at two elements when an employee refers a dispute:
  • Substantive fairness – a valid and fair reason for the sanction imposed. The employer must be able to prove the following on a balance of probabilities:
  • Was there a rule in the workplace?
  • Was the rule reasonable?
  • Was the employee aware of the rule?
  • Did the employee break the rule?
  • Did the employer apply progressive discipline (consultation and warnings, according to the offence)?
  • Did the employer apply discipline consistently?
  • Did the misconduct justify the sanction applied?
  • Procedural fairness – the required legal procedure before imposing a sanction. An employer cannot dismiss an employee under any circumstances, even with a valid reason, without holding a disciplinary hearing to ensure that a fair procedure is followed. The employer must be able to prove the following:
  • A disciplinary hearing was held;
  • The employee was notified in writing at least 48 hours (excluding weekends and public holidays) prior to the hearing to prepare for the hearing;
  • All documentation (notice to attend the hearing and a procedural application form) contained all the necessary information required by legislation;
  • The chairperson was informed and unbiased;
  • The accused employee was given every chance to prepare for and defend his/her case;
  • Aggravating and mitigating circumstances were taken into account;
  • The outcome of the dismissal was based on the facts presented during the hearing;
  • The sanction was appropriate according to the offence;
  • The hearing and outcome were recorded in writing by the chairperson;
  • The employee received the outcome in writing.

Labour risk is a huge business risk. To ensure the sustainability and profitability of your business, labour risk needs to be managed proactively, as not following the correct procedures can lead to dire consequences with a substantial financial impact.

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A potion for December

A potion for December

A potion for December

by Abrie Bronkhorst

The calendar year is at an end, but the work environment presents many challenges as it is grounded in human relations. Communication remains one of the keys to success in managing the environment and limiting friction, especially over December.
Three areas where friction can easily rear its head, are as follows:
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Year-end function

The festive season is in swing and several businesses are getting ready to end this year with a party. Employers can still hold employees accountable during such functions for any misconduct not normally permitted within the workplace. Regardless of whether the function takes place on the employer’s premises or not, alcohol is often served, which can create challenges for the employer as the consumption of alcohol can lead to misconduct by employees. Employees under the influence can damage working relationships, as well as the employer’s reputation.
For example, employees may drive under the influence after the function, or they may disregard health and safety provisions, which may lead to a claim for an injury on duty. The employer can be held liable for this as the employee attends the function as part of the performance of his/her duties. It is very important that employers take steps to ensure appropriate behavior at functions and inform employees about the following before the function:
  • the level of professionalism expected at the function;
  • that each employee is responsible for keeping his alcohol intake within legal and reasonable limits;
  • that any misconduct by an employee before, during or after the year-end function will lead to disciplinary action against the employee.

Annual leave

Employers should take the following into account when dealing with annual leave:

  • In terms of the Basic Conditions of Employment Act, an employee is entitled to 1 day of paid leave for every 17 days worked. This works out to 1.25 days of paid leave per month, or 15 working days of paid leave per year (if an employee works 5 days per week).
  • The leave cycle is a 12-month period calculated from the date of employment and is renewed annually.
  • Annual leave accumulates and can be carried over to the next leave cycle, but must be taken within six months of the new cycle.
  • Annual leave is paid leave and the employee receives full payment during the leave period. The normal payment date can be modified by a payment agreement for this period.
  • Public holidays do not form part of annual leave and are additional. Please note that 27 December 2022 has been declared a public holiday by the president and must therefore be treated accordingly in terms of compensation and time off.
  • Leave may not be exchanged for compensation. Leave may only be paid out on termination of employment.
Employees should follow a process where a leave form is completed as an application for leave. When an employee applies for leave, the employer has the right to refuse leave due to operational requirements. If an employee’s application for leave has not been approved by the employer and the employee decides to still take the leave, the employer can take disciplinary action against the employee, as the employee is then absent without permission
The employer also has the right to determine a specific period when employees must take the majority of their annual leave to avoid employees taking leave during the business’s busiest times. Take care to communicate this specific period to employees early on to ensure that all employees have enough leave, especially when the business closes for a period. If employees have not accumulated enough leave, unpaid leave must be taken for this period.
We recommend that employers indicate each employee’s available leave, as well as a record of leave taken, on the payslip to avoid any uncertainty. It is important that the employer keeps a record of leave taken as proof should a dispute arise.

Bonusses

A common misperception in the workplace is that employees are entitled to an annual bonus. An employee can only claim a bonus when it is so prescribed by legislation applicable to the specific sector. Bonuses are therefore solely at the employer’s discretion. It is extremely important that the employer confirms this in writing so as not to create an expectation with the employee that bonuses form part of his/her employment conditions.

There are different types of bonuses for which an employee may qualify in the workplace:

  • A thirteenth cheque
This type of bonus is considered a condition of employment. As a result, the employee has the expectation of a thirteenth cheque every year as part of his/her compensation package. If an employer has already granted a year-end bonus to employees for some time, this may also create an expectation among employees to receive bonuses every year as a matter of practice. If the employer wishes to terminate or amend the practice of paying a thirteenth cheque, the employer must consult with the employee and reach an agreement.
The employer may not amend the terms and conditions of employment unilaterally, as this can be regarded as unreasonable and unfair. The employee may refer the matter to the Commission for Conciliation, Mediation and Arbitration.
  • Performance bonus
The performance bonus is awarded at the employer’s discretion following an employee’s individual work performance during a certain period. This bonus can be paid monthly or annually and can be forfeited if the employee’s work performance is not up to standard. It is important that the employer establishes clear standards in terms of quality and quantity that employees must comply with. Employers must also continuously evaluate and assess employees so that any poor job performance can be immediately identified and addressed.
  • Production bonus

The production bonus is awarded at the employer’s discretion following a division or group’s production measured against production goals as set by management.  It is important that the employer establishes and communicates clear targets or objectives to employees. When an employee alleges he/she is entitled to a bonus, the onus rests on the employer to prove the contrary. It is important that an employer continuously evaluates the employee’s work performance, and keep record of these assessments.

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Harassment! The ugly devil in the workplace

Harassment! The ugly devil in the workplace

Harassment! The ugly devil in the workplace

by Abrie Bronkhorst

South Africa’s Constitution guarantees every South African the right to safety and security of the person, as well as the right to fair labour practices. These rights apply to both employers and employees alike and whilst there is a perception that only employees fall victim to harassment and intimidation in the workplace, employers can also be the victim. Workplace harassment and intimidation is one of the most rapidly increasing workplace issues. Employers must be aware of this growing problem and understand the impact not only on employees, but also on the reputation and productivity of the workplace.
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Harassment

Harassment refers to conduct (directly or indirectly) with the intent to harass, annoy or irritate another person, but with no intent to cause physical harm. Examples in the workplace can include:
  • following, watching, pursuing or accosting the victim, or loitering outside of or near the building or place where the victim resides, works, carries on business, studies or happens to be;
  • engaging in unsolicited verbal, electronic or any other communication aimed at the victim whether or not conversation ensues;
  • sending, delivering or causing the delivery of letters, telegrams, packages, facsimiles, electronic mail or other objects to the victim or leaving it where it will be found by, given to  or brought to the attention of the victim;
  • any kind of sexual behaviour;
  • unilateral work changes;
  • unrealistic workplace conditions or performance demands.

Intimidation

Intimidation is the intentional behaviour that would cause a person of ordinary sensibilities to fear injury or harm. Examples in the workplace can include:
  • yelling, cursing or swearing;
  • blaming an individual for the mistakes of others;
  • ridiculing through unsubstantiated criticism;
  • attacks on the victim’s self-esteem.

The result of harassment and intimidation

Main affected areas in the workplace include:
  • Loss of productivity due to emotional trauma of victims and distracted employees due to a loss of concentration. A harmonious working environment is vital for productivity.
  • Absenteeism due to fear, stress and emotional trauma. Low self-confidence and humiliation can also lead or contribute to other issues such as alcohol or drug abuse.
  • Misconduct due to the disturbance of workplace relationships. Fear, stress, intolerance, anger and paranoia can lead to other misconduct such as fighting, assault, further intimidation, unauthorised possession of weapons, damages to property, insubordination, negligence, poor work performance, sleeping on duty, etc.

Be proactive as the employer

Every individual has the right to be treated with dignity and respect. Employers, in fact, have an obligation to protect employees from all forms of harassment. It is advisable to implement an internal policy that highlights and prohibits this type of behaviour. The employer can then take disciplinary action against employees who are guilty of this type of behaviour. The employer can also present an awareness session about this prohibited behaviour. Each employee then signs an attendance register as proof that they have attended the session.
It is very important that the employer has a grievance policy and a relevant disciplinary code in place. The aim of the grievance procedure is firstly to create a harmonious working environment by identifying and resolving any dissatisfaction or feelings of injustice from an employee’s side. Secondly, the grievance procedure helps to protect the employer in a case of constructive dismissal, where the work situation had become so intolerable that the employee had no alternative other than to resign. In such a case the commissioner of the Commission for Conciliation, Mediation and Arbitration will always ask whether a grievance procedure was in place. Employers must take any complaints made by employees seriously and thoroughly investigate alleged incidents. Failure to do so may contribute to a referral of constructive dismissal. However, false complaints will be considered gross misconduct.
Regular communication is vital in the workplace. Meetings with employees, individually or in a group, will create a platform for employees to voice their thoughts and ideas, as well as to discuss any specific needs.
When trauma occurs in the workplace, it is always a good idea for the employer to consider counselling and even compassionate leave, depending on the circumstances.

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