Thousands of employees were retrenched or dismissed during the COVID-19 induced lockdown. Many of these employees have turned to the Commission for Conciliation, Mediation and Arbitration (CCMA) for assistance and referred CCMA cases.

The CCMA has received nationally 23 532 referrals, affecting 43 867 workers from 1 April 2020 to 31 May 2020. Most cases referred pertain to unfair dismissals.

With CCMA cases, arbitration awards in favour of the employee are in general due to the employer not following the correct procedures (click on this link to read our article on “tips to survive the CCMA”) and can have a huge financial impact.

What can go wrong?

• What happens when you dismiss an employee “incorrectly”?
• What penalties are payable with labour disputes and CCMA cases?
• Do you settle for a generic employment contract with little protection?
• What happens when you don’t follow the correct procedure with every labour dispute every time?
• What happens when you lose your temper and dismiss someone “with immediate effect” in the heat of the moment?

Possible orders against the employer?

• CCMA: 3-12 months’ salary and/or reinstatement
• Labour court: 3-24 months’ salary and/or reinstatement

The LWO is a registered employers’ organisation with the Department of Labour and automatically has the right to represent our members in the CCMA, Bargaining Councils and Labour court. We have a proven track record at the CCMA with a success rate of 99.98%! The LWO was established in 1990 and have been assisting employers for 30 years!

Myths – what is true or false?

1. Only BEEE compliant employers can apply for the COVID-19 relief benefits (TERS)
   • FALSE: any business contributing to the unemployment insurance fund (UIF) that cannot pay salaries due to the lockdown period, and any contributing employee (who works more than 24 hours per month), and where there exists an employer-employee relationship, can apply for the COVID-19 relief benefit.

   
   

2. The only way to apply for the COVID-19 TERS relief fund is telephonically
   • FALSE: businesses are encouraged to apply on behalf of their employees by visiting https://uifecc.labour.gov.za/covid19/, registering and following the application process.




3. I failed to register my employees for UIF, they may not be eligible for relief
   • TRUE: businesses who have registered with UIF just after 15 March 2020 may possibly not be eligible for the benefit.




4. Employees not registered for UIF will receive benefits
   • FALSE: all employees will be checked against the UIF systems and if the employee is not registered with UIF, the application will be sent back requesting additional information from the employer.




5. Employees will be paid out a full salary from TERS
   • FALSE:
     • The minimum amount to be paid by UIF to employees is R3 500.00
     • The maximum amount to be paid by UIF to employees is R6 638.40




6. The employer does not have to follow special precautions prior to reopening the workplace for employees to resume duties
   • FALSE: the employer still has the responsibility to create and maintain a safe working environment for employees. Detailed guidelines for occupational health and safety was issued indicating the regulations of what must be in place before employees are allowed to return to work.




7. The employer can retrench employees during the lockdown period without following required procedures
   • FALSE: Section 189 of the Labour Relations Act sets out strict requirements that must be followed when retrenchment is considered.

Every field has its myths – what is true or false? It is important to get expert advice regarding labour law as mistakes are costly.

Alert level 3

Health and safety

Every business is unique and we encourage our members to contact the LWO for advice.  The LWO is available 24/7 to assist employers with regards to labour law.  Please contact the LWO for assistance at 086 110 1828 or if you have any queries in this regard.

What about the LWO?

The LWO is authorised to provide services to LWO members on the following basis (not yet a member – have a look at our cost-effective and user friendly membership packages):

• 24/7 telephonic and electronic advice – phone 086 110 1828 or send an e-mail to info@lwo.co.za;
• Physical services on the work premises of employers who are classified as essential services, or who are permitted to resume business activities under alert level 3.  These services for members are strictly monitored on a continuous basis and take place under special conditions.

We confirm that the LWO complies with the set requirements in terms of health and safety in the workplace.

Stay updated – www.sacoronavirus.co.za

Alert level 4

South Africa moved to an alert level 4 status regarding the Coronavirus (COVID-19) pandemic since 1 May 2020. Download the Government Gazette dated 29 April 2020 to take note of and implement. Employers must ensure that they are categorised as either an essential service or a permitted service before resuming business activities, as and where authorised.

Health and safety

Download the Government Notice dated 28 April 2020 with regards to health and safety in the workplace regulations. Employers must implement these regulations before resuming business activities, as and where authorised in terms of the Government Gazette during alert level 4.

This pandemic undoubtedly has a wide impact on businesses.  Although we are currently on an alert level 4, businesses’ loss of income and obligation towards employees is still a concern for many employers, especially where employers are unable to pay their employees in full.

Every business is unique and we encourage our members to contact the LWO for advice.  The LWO is available 24/7 to assist employers with regards to labour law.  Please contact the LWO for assistance at 086 110 1828 or if you have any queries in this regard.

What about the LWO?

• 24/7 telephonic and electronic advice – phone 086 110 1828 or send an e-mail to info@lwo.co.za;
• Physical services on the work premises of employers who are classified as essential services, or who are permitted to resume business activities under alert level 4.  These services for members are strictly monitored and take place under special conditions from Thursday 7 May 2020.

We confirm that the LWO complies with the set requirements in terms of health and safety in the workplace as per the Government Notice dated 28 April 2020.

Stay updated – www.sacoronavirus.co.za

President Ramaphosa has announced a national lockdown on 23 March 2020 that will take effect from midnight 26 March 2020 until midnight 16 April 2020.

Only business categorised as essential services may remain fully operational during the lockdown period. These categories are published in the Government Gazette (25/03/2020), refer to Annexure B on page 10. Additional businesses that are categorised as essential services was published in the Government Gazette (26/03/2020), refer to page 5, point 6, where additions to Annexure B was made. Take note that employees in all categories who must commute to the workplace, must be able to show a permit on a continuous basis to confirm that their actions are not in contradiction with the regulations in terms of the national lockdown. Download a permit to use in order to provide essential services.

With regards to businesses that fall outside these categories, employers can consider the following available options:

• Employers who are able to continue paying employees in full are encouraged to do so, as long as it doesn’t jeopardises the business’s sustainability.
• Employers can apply annual leave for the lockdown period if practical.
• Employees can be allowed to work from home if possible and practical.
• Employers can apply the principle of “no work no pay” – employees are then temporarily retrenched due to operational requirements when business operations come to a standstill. Employees are entitled to claim UIF benefits for this period.
• Employers can implement short time when the normal work volume has decreased drastically, but certain activities still need to take place. Employees therefore work fewer hours and are compensated accordingly for hours worked. Employees are entitled to claim UIF benefits for this period. It is important that these activities are not in contradiction with the regulations in terms of the national lockdown. Employees can for instance be allowed to work from home if possible and practical.

An easy aid guide was released by the Department of Employment and Labour with regards to claiming UIF.

A COVID-19 TERS easy aid guide was released by the Department of Employment and Labour with the aim to provide aid to employers in the form of financial assistance.

Every business is unique and we encourage our members to contact the LWO for advice – don’t settle for generic advice/information – get the best solution for your business and your industry.

COVID-19: Direct impact of the Coronavirus on the workplace

Here with a summary of decisions with regards to the Coronavirus (COVID-19) announced at the special Nedlac executive committee meeting held on 16 March 2020:

• Health and safety risk assessments need to be conducted in all workplaces. Guidelines and checklists in this regard will be made available on www.labour.gov.za.
• Employers are expected to implement extremely strict hygiene provisions (facilities for hand washing are imperative).
• If an employee needs to self-isolate due to international travel or exposure to an infected individual, such self-isolation period will be compensated by the Unemployment Insurance Fund (UIF) as special leave (unpaid).
• If a business needs to close due to potential exposure, the UIF will send officials to workplaces to assist with registering the UIF claims of employees.
• Assistance will be available to businesses that become distressed due to the Coronavirus (COVID-19). This will be made available by the National Treasury – no details are available yet.
• Employees who contract the virus during their employment will have a claim in terms of the compensation for Occupational Injuries and Diseases Act (COIDA).

As forms and other resources become available, it will be distributed to members immediately.

COVID-19: Employers’ concerns to continue business operations sustainably during the declared disaster

• Employers’ obligation to create and maintain a safe and healthy working environment
  Employers must conduct a health and safety risk assessment in the workplace and develop and implement an infection control plan according to the risk assessment. Be proactive by applying strict hygiene rules.
• Loss of income and obligation towards employees
  Take note that each workplace differs and employers’ unique circumstances will determine which solution can be considered. It is critical that employers follow the correct procedure. Options include:
  • Short time: Employers can implement short time when the normal work volume has decreased drastically, but certain activities still need to take place. Employees therefore work fewer hours and are compensated accordingly for hours worked.
  • Temporary retrenchments: Employers can temporarily retrench employees due to operational requirements when business operations come to a standstill. Employees are entitled to claim UIF benefits for this period.
  • Unpaid leave: The employer and employee can agree on unpaid leave for a specific period.
• Absence from the workplace
  • Self-quarantine: If an employee needs to self-isolate due to international travel or exposure to an infected individual (COVID-19), such self-isolation period will be compensated by the UIF as special leave (unpaid).
  • Risk linked to public transport: The employee has the responsibility to report for work and absence will be dealt with on the principle of no work no pay.